Danger: Banks threaten to close shop in Imo

Danger: Banks threaten to close shop in Imo

. Over face off with govt

Banks operating in Imo state may shut down their operations in the state if the current cold war between them and the state government is not nipped in the bud.

The Nigerian Horn gathered that the on-going face off, which has remained out of public knowledge for some time, has to do with an allegation by the state government that the banks are not paying withholding taxes, a charge which the banks are vehemently protested against. The issue principally is that the banks are protesting over various amounts of money imposed on them by the State Board of Internal Revenue (BIR), as representing the taxes owed by the banks. The amount, according to highly reliable sources, ranges from N650million to N250million, which the banks argue are not only arbitrary but designed by some unscrupulous elements in the system to defraud them. The banks argued further that the move was a misrepresentation of facts as none of them is in default on the payment of any form of taxes to the state government.

Consequently, the banks invited the state government to come for a scrutiny of their books in order to resolve the matter once and for all. But to their greatest surprise, the state government, rather than respond to this invitation, went ahead to secretly obtain an exparte court motion to restrain the banks, that is to prevent them from operating; a move that banks believe is aimed at intimidating them into submission. On getting wind of the secret court order, however, the various managements of the banks decided to seek an audience with the management of the BIR and it was agreed at the meeting that the banks should be given time to properly brief their different head offices on the development.

But on the date agreed for another meeting after consultations with their headquarters, officials of the BIR, it was gathered, stayed away from the scheduled meeting. When contacted, the BiR officials were said to have told the banks that the matter had been taken over by the Government House. The banks were therefore compelled to write letters to the office of the state Governor and the leader of the State House of Assembly but the latter is yet to respond as at the time of this report, leading to fears that the state government may still be hell bent on executing the secret court order.

To forestall being taken unawares, the banks, according to a senior management staff of a first generation bank in the state but who spoke on conditions of anonymity, disclosed that the banks are planning to close shops on their own any time from now, pending the time the matter is resolved. When this newspaper made contacts with the BIR an official, who pleaded anonymity, disclosed that the agency has been asked to stay clear of the matter.

Speaking to Nigerian Horn yesterday on the issue, the Chief of Staff Government House and Commissioner for Special Duties, Sir Jude Ejiogu said the banks should tell Imo people the real truth.

According to Ejiogu, some banks refused to pay their statutory taxes to the Imo State government for reasons best known to them.

He added that though the former administration in the state did not pay attention to IGR, maintaining that it is not enough reasons for the banks to refuse to comply with simple directives of government.