Tax Default Suit: Abia, MOUAU Set for Out-of-Court Settlement

Emmanuel Ugwu-Nwogo in Umuahia

The legal battle between Abia State Government and the management of Michael Okpara University of Agriculture Umudike (MOUAU) over alleged tax default would eventually be settled out of court, according the state Governor, Alex Otti.

 He made this known when he received the management of the federal government-owned ivory tower, which are on a working visit to the governor at Nvosi, Isiala Ngwa South Local Government Area.

The immediate-past Abia State administration had dragged the institution to court through the State Internal Revenue Service over the alleged failure of MOUAU management to remit the pay-as-you-earn (PAYE) taxes deducted from staff.

But Otti said his government was ready to withdraw the suit against the university to make way for out-of-court settlement of the case, which has been on since two years.

“There is no way we as a government would take you to court . Since it is something that predated us, we are going to look into it and discontinue it. It doesn’t make sense.

“I will instruct the chairman of the BIR to discontinue the suit. There is nothing we cannot sit down to resolve,” the governor added.

Otti also assured the MOUAU delegation that he would engage the university and its host  communities in resolving issues preventing the university from procuring certificate of occupancy for its land.

Governor Otti said he could easily issue certificate of occupancy to the university but won’t do so by fiat without engaging with the host communities to avoid creating problem between the institution and the people that donated the lands which it occupies.

He said: “Our government likes to engage with the people. We noticed that there was little or no noise when we took down close to 150 buildings in Ossah road to expand that road. The reason is that we engaged with the people and compensated them before we started the project.”

Otti thanked the National Institute for Food Science and Technology for sending him a letter of appreciation on the successful hosting of its programme in the state and nominating him as a trustee member.

On the students violent protest which led to the indefinite closure of MOUAU since February 6, 2024, Otti charged the university management to dig to the root cause of the problem with a view to finding a lasting solution.

He stated that disruption of academic programmes was unhealthy for learning and inimical to the future of the younger generation hence the need to know the cause of the students unrest.

Otti promised to liaise with the management of the institution and other stakeholders to facilitate the resumption of full academic activities in the citadel of learning.

“It is important that you get to the root of the matter. If the investigation panel does not do a thorough job, you may not get to the root and one of the ways to solve a problem is not to prejudge it.

“Prejudging an issue will close your mind to every other suggestions but if a thorough investigation to know the root cause and deal with it from the root.”

The governor welcomed the initiative of MOUAU management to establish Agric Business Incubation Centre which would soon become a reality. He, therefore, directed the Commissioner for Agriculture, Professor Monica Ironkwe, and the Principal Secretary to the Governor to engage the institution on the way forward.

The Vice Chancellor of MOUAU, Professor Maduebibisi Iwe, who led the delegation, had earlier in his remarks pleaded with the governor to intervene in the legal dispute instituted against the university by the Abia State Revenue Service.

He also requested Governor Otti to expedite action on issuing the institution the certificate of occupancy, saying it would help the university a great deal in its expansion projects.