Former Osun State Governor Denies Loan Allegations By Incumbent Governor

The immediate past governor of Osun State in Southwest Nigeria, Adegboyega Oyetola has denied the allegation levied against him by the incumbent Governor Ademola Adeleke that he took loan facilities during his four-year tenure.

Adeleke had alleged in an address during an interaction with the Osun State traditional rulers on Thursday that the state was indebted to the tune of 407 billion and that his predecessor took loans, including Budget Support Facility as well as the Federal Government Bridge Finance Facility.

Oyetola however reiterated his earlier claim that he never took any loan facility. In a response, his spokesperson, Ismail Omipidan, said, “I insist, for the umpteenth time, that my principal never took any loan facility for the four years he used in office. The claim by the new governor shows clearly that he lacks understanding of how government is run.

“If you go to my principal’s farewell address, he stated it clearly, that like every other state, we benefitted N3billion on monthly basis for six months from the Federal Government as budget support. This money was given to all the 36 states of the country without requesting. You can not categorize that as loan.

“So the new governor does not understand the working of government and he should have allowed those that understand the rudiments to explain it to him, so that he won’t be coming to the public to embarrass himself the way he did.

“We also left N14 billion behind. They should tell the people how much they met in the state coffers”, he said.

However, Governor Adeleke in his speech had explained that his administration inherited eight outstanding loan facilities, apart from salaries and pension debts, from Governor Oyetola’s administration; with repayment period ranging from 16 months to about 28 years.

“The only Fund in government coffers, as at Monday 29th November, was for November 2022 Salary. Otherwise, the state treasury was empty.

“As your governor, I will ask questions on your behalf. And will demand for answers.

“Governor Oyetola must explain how the N331 Billion borrowed in the name of Osun State was expended, with no obvious infrastructural development to justify this huge debt.

“Governor Oyetola must explain how the N18 Billion Bridge Loan taken after he lost the election on July 16, 2022, was expended.

“Governor Oyetola must also explain why Osun state is owing salaries & pension to the tune of N76 Billion after collecting a N50 Billion Salary Bail Out Loan from the Federal Government” Governor Adeleke said.

Adeleke also inquired why creditors, especially the Commercial Banks must explain why various loans were given to an administration beyond its 4 year tenure, saying 28 years is equivalent to the tenure of at least four Governors and that such an act amounts to mortgaging the future of the state.

Reacting further to allegations, Omipidan said:

“Again, even in the table they released by themselves, they contradicted themselves. Take a look at item 7 on their list, they captured the N3 billion monthly as having commenced from December 2021 and that it came for six months. Yet, they claim the same N18 billion was accessed after the July election. You see why I said they are either confused or are out for mischief or even both.

“In the third paragraph of the speech from the rear, my Principal had said ‘for four years, we did not take any bank loan facility. But we benefitted from the N3 billion monthly intervention from the federal Government for six months to cushion the effect of deductions of budget support facility and salary bailout accessed by the previous administration, just as we have paid N97 billion from the total debt we inherited in 2018.’ I want to believe that is what they have now twisted to call loan. This intervention was extended to all the 36 states of the Federation; and the monthly N3 billion for six months came before the July 16 governorship election. This is a fact that can be verified.

“Let me restate here that we never took any bank facility, and we challenge the Government to publish balances of all bank accounts belonging to the State as at November 26, 2022. When the Oyetola administration took over in 2018, we inherited humongous debt but we never complained or made excuses. What we did was to get to work and find means of making things work for the four years we have governed Osun and we reduced the debts we inherited by N97Billion.

“By the way, Governor Adeleke announced the freezing of all government accounts on November 27 when he took over. Till date, he is yet to announce that he has unfrozen the accounts. Yet, they have been spending from State Government coffers since then. So, where is the money coming from? This is where you will know that those around the Governor are a bunch of liars who are not prepared for governance but preparing grounds for excuses and non-performance,” Omipidan added.

Monarchs response

A notable monarch who responded after the address, the Oluwo of Iwo, Oba Abdurrasheed Adewale Akanbi advise the governor to be transparent in his dealings and shun media trial by probing the allegations, thereby giving fair hearing to the accused.

“God has done what He wishes by making you the governor of Osun state. When Governor Adeleke was stating the debt profile of Osun, I saw sincerity in him.

“In the country where I was living before returning to Osun, there is accountability in government. Since you said what you presented today is from the Accountant-General don’t discard it. If somebody has done these, question him, give room for fair hearing. I don’t want to jump to conclusion, but I know Oyetola cannot do such but if he has done so, according to what was presented today, the former governor should tell us. We deserve to know the truth”, Oluwo advised.

Also speaking, another notable monarch, the Olowu Kuta, Oba Adekunle Makama urged the governor to be focused and refuse to be distracted.

“Don’t be distracted, face governance. Your hundred days in office is counting, your success is what Is important to us. You know those who did what you stated today are now in opposition. You can give these facts to your party to be tackling them while you face governance. You have a mission and a blueprint to work with. If you want to stand by the debt profile you presented today, will not do anything”, Olowu Kuta said.