Thursday, March 28, 2024

Oyetola left N407.32bn debt, got more loans after losing governorship poll – Adeleke

  • Says ex-governor has mortgaged future of Osun

BY TIMOTHY AGBOR, OSOGBO

Contrary to claims by the immediate past governor of Osun State, Gboyega Oyetola that his did not borrow any money throughout his four-year tenure, Governor Ademola Adeleke has revealed that his predecessor left N407.32billion as debt for the state and also increased the state debt profile after losing the July 16 governorship election.

Adeleke made this known on Thursday, while delivering his address at a meeting with the Osun State Traditional Rulers in Osogbo.

Backing the revelation up with a document said to have emanated from the state’s Accountant General, Governor Adeleke expressed dismay that Oyetola allegedly got a Federal Government Bridge Finance Facility of N18.04 billion, adding that, “a large portion of this particular loan was taken after the July 16, 2022 election which Governor Oyetola lost. No information on the Repayment terms.”

He said, “The only fund in government coffers, as at November 29, was for November 2022 salary. Otherwise, the state treasury was empty.”

The governor added the total loan stock as at present was N331.32 billion, saying, “if the N76 billion debts on salaries and pension are added, the state is indebted to the tune of N407.32 billion. The amount owed to contractors is yet to be determined.”

“With a high sense of responsibility, I am reporting to our people through our traditional rulers, the total debt profile inherited by my administration from Governor Oyetola’s administration.

“This event is in pursuance of my pledge to Osun people to be transparent and run an open government.

“My administration inherited eight outstanding loan facilities, apart from salaries and pension debts, from Governor Oyetola’s administration. The repayment period ranges from 16 months to about 28 years, as follows:

1. Budget Support Facility: Outstanding Balance: N51.8 Billion; Monthly repayment: N154.9m; Repayable Period Outstanding: 335 months = 27 years 9 months.

2. Salary Bail Out Loan: Outstanding Balance: N38.8 Billion; Monthly Repayment: N232.77m; Repayable Period Outstanding: 167 Months = 13 years 9months

3. Restructured Commercial Bank Loans: Outstanding Balance: N158.77 Billion; Monthly Repayment: N1.14 Billion; Repayable Period; Outstanding: 139 Months = 11 years 6 months.

4. Excess Crude Account (ECA) Loan: Outstanding Balance: N14.48 Billion; Monthly Repayment: N89.97m; Repayable Period Outstanding: 161 Months = 13 years 4 months

5. CBN Infrastructure Loan: Outstanding Balance: N9.2 Billion; Monthly Repayment: N44.98m; Repayable Period Outstanding: 205 months = 17 years 1 month.

6. FGN Intervention Loan: Outstanding Balance: N1.7Billion; Monthly Repayment: N100m; Repayable Period Outstanding: 17 months.

7. FGN Bridge Finance Facility: N18.04 Billion

A large portion of this particular loan was taken after the July 16, 2022 election which Governor Oyetola lost. No information on the Repayment terms.

“Not one kobo of this loan was left in government coffers, when the Deputy Governor and I resumed work on Monday, 28th November 2022, and no explanation on how the loan was expended.

“8. Foreign loans: $86.2m. No information on the Repayment Terms,” Adeleke enumerated.”

Meanwhile, the governor has threatened to probe his predecessor on how the administration expended the loans. He also said that commercial banks would explain why they gave the former governor loans beyond his administration period.

“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

“The creditors, especially the commercial banks must explain why various loans were given to an administration beyond its 4 year tenure. 28 years is equivalent to the tenure of at least four Governors. A child that is born today would have earned a PhD at 28 years of age. This is nothing but mortgaging the future of Osun State with nothing to show for it. This is definitely not acceptable.

“I will update you accordingly, as we progress,” Adeleke assured.

Speaking at the presentation of Osun debt profile, one of the traditional rulers, Oluwo of Iwo, Oba Abdulrosheed Akanbi, said the state deserves to know the truth about its debt burden, asking Oyetola to respond to Adeleke’s claims.

Addressing Adeleke at the meeting, Oluwo said, “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.

“What Ooni gives to the monarchs is what they are surviving on. Some paramount rulers collect N90, 000 while other Obas collect N30, 000 monthly.

“Since you (Adeleke) said what you presented today is from the Accountant-General, don’t discard it. If somebody has done these, question him and give room for fair hearing. I don’t want to jump to conclusions, 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.”

Also reacting to the debt profile, another traditional ruler, Olowu of Owu-Kuta, Oba Makama Oyelude, asked Governor Adeleke not to be distracted with the discovery saying Adeleke may not perform if he continued to mind the state debt burden.

“Don’t be distracted, face governance. Your 100 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 this fact to your party to be tackling them while you face governance. You have a mission and blueprint that you work with. If you want to stand by the debt profile that you presented today, you would not do anything,” the monarch told Adeleke.

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