Eight commercial banks were sealed by the Enugu State Government for failure to remit about N1 billion in taxes to the coffers of the state government.
Enforcement of the closure of the banks was carried out by the Enugu State Board of Internal Revenue which obtained Exparte Orders from the state High Court and swung into action as early as 6am Monday.
The 8 banks have a combined branch network of 36 in Enugu and and the neighbouring towns of Agbani and Ituku Ozalla.
Speaking to reporters the chairman, Enugu state Board of Internal Revenue, Emeka Odo said that the amount of N1b being owed the state government by the affected banks have been outstanding since 2007.
Odo said the branches of the affected banks in the state which are now under lock and key would remain locked until they pay to the state government the taxes they have collected on its behalf noting that the banks had been denying the state government of the funds it needed to execute developmental programmes that would impact positively on the lives of the people.
Odo further stated that in the past one year they wrote the affected banks severally and even held meetings with them on the subject matter but they would rather hold on to government funds illegally.
“The sealing of the banks is the first phase of the enforcement exercise on major companies and institutions to ensure that they perform their civic obligation to the state government”.
the board chairman said
He maintained : “We can no longer allow the banks to behave like corporate outlaws. Mooreso, when it is on record that the Withholding Taxes (WHT) which the state government is demanding that banks remit to its coffer, have already been deducted by the banks from the interests that they pay on deposits to their customers, the banks have no business holding onto these taxes they collected on behalf of the government”.
Many customers of the banks who came to transact business in the various affected banks were seen stranded and discussing in
groups.
He however called on the people of the state especially customers of the affected banks to be calm and see the action as a measure to enable the government serve them better.
