*Says Oyetola must explain N331bn borrowed for infrastructural devt, N18bn bridge loan
*I never took any bank loan in four years, former governor insists
*Challenges Adeleke to publish details of Osun debts with procurement dates
Osun State’s Governor Ademola Adeleke addressed the state’s traditional leaders yesterday of the state’s financial situation and stated that the state owed a total of N407.32 billion in debt.
Adegboyega Oyetola’s communications adviser, Ismail Omipidan, responded by reiterating that his principal never used a bank loan throughout the four years he served as governor of Osun.
“Not one kobo of this loan was left in government coffers when my Deputy Governor, Prince Kola Adewusi and himself resumed work on Monday, November 29, 2022,” said Adeleke, who revealed the state’s debt in his address at a meeting held at the Government House, Osogbo. “There was no explanation on how the loan was expended.”
“I summoned this conference first to meet our royal fathers and to deliver to you the official debt profile of Osun state as at November 30, 2022, as submitted to me by the Accountant General of Osun State,” he said.
“I am reporting to our people, through our traditional leaders, the complete debt profile that my administration inherited from the administration of Governor Gboyega Oyetola, with a strong sense of responsibility.”
Adeleke emphasized that the meeting was held in accordance with his promise to the Osun people to run an open and transparent government.
Apart from the arrears for salary and pensions, Adeleke said that his administration also inherited eight unpaid credit facilities from Oyetola’s administration. He claimed that the loan repayment terms ranged from 16 months to about 28 years.
Among the unpaid debts Adeleke brought to her attention was the Budget Support Facility, which had an outstanding balance of N51.8 billion, a monthly payments of N154.9 million, and a fixed repayment period of 335 months. That translates to 27 years and 9 months.
Additionally, there is a salary bailout loan with a balance of N38.8 billion, a monthly payments of N232.77 million, and an outstanding repayment period of 167 months, or 13 years and 9 months.
Restructured Commercial Bank Loans were also included, with an outstanding balance of N158.77 billion, a monthly repayment of N1.14 billion, and an outstanding repayment period of 139 months.
Excess Crude Account (ECA) Loan: Outstanding Balance: N14.48 Billion, Monthly Repayment: N89.97 Million, Repayable Period Outstanding: 161 Months were among the other items the governor mentioned.
The outstanding balance on the CBN Infrastructure Loan is N9.2 billion, with monthly payments of N44.98 million due over a 205-month repayment period.
There were also unpaid loans, including the FGN Intervention Loan, with an outstanding balance of N1.7 billion, a monthly repayment of N100 million, and a repayment period of 17 months, as well as the FGN Bridge Finance Facility, with an outstanding balance of N18.04 billion and foreign loans totaling $86.2 million.
According to Adeleke, the total loan stock is currently N331.32 billion, and if the N76 billion in debt for salaries and pensions were included, the state would be owed N407.32 billion. He said that the sum payable to the contractors had not yet been established.
“As of Monday, November 29, the only fund in government coffers was for the wage for November 2022. The governmental treasury was otherwise empty. I shall put questions to you as your governor. And I’ll demand an explanation. In order to defend this enormous debt, Governor Oyetola must explain how the N331 billion borrowed in the name of Osun State was spent without any glaring infrastructure improvements.
“Governor Oyetola must give an account of how the N18 billion bridge loan he obtained following his defeat in the July 16, 2022 election was used.”
In addition, Governor Oyetola needs to clarify why Osun State still owes N76 billion in salary and pensions despite receiving a N50 billion Salary Bailout loan from the federal government.
“The creditors, especially the commercial banks, must explain why different loans were extended to an administration beyond its four-year tenure,” the governor continued. The tenure of at least four governors is equal to twenty-eight years. At the age of 28, a child born today would have obtained a PhD. This is nothing more than a pointless mortgage on Osun State’s future. Without a doubt, this is unacceptable.
In response, Omipidan revealed that during his four years as governor, his principal never used a bank facility.
He stated that the administration of Rauf Aregbesola was responsible for the debt in question.
Omipidan went on to call the incoming governor’s assertion that Oyetola used a N18 billion borrowing facility absurd and untrue, saying that it was made out of simple ignorance and malice.
He then issued a challenge to Adeleke, asking him to reveal information about the outstanding loan facilities he claimed his government had inherited as well as the years when they were obtained.
Omipidan claimed that although Nigerians from all over the country and Osun residents understood the truth, the government was trying to discredit and blackmail Oyetola.
“When discussing loans, it is impossible to discuss the maturity date without also discussing the dates at which the loans were obtained.
“Either those who wrote the speech for the Governor to read did not comprehend the ramifications of their position, they did it out of pure malice to humiliate their Principal, or both, are likely to blame.
Otherwise, they would not have claimed that my Principal took a N18 billion loan if they had read and comprehended his farewell speech well.
“Once more, they contradicted each other in the table that they independently released. Look at item seven on their list; they stated that the N3 billion monthly payment started in December 2021 and was for a period of six months. However, they assert that the same N18 billion was used following the July election. You now understand why I indicated that they are either out-of-it or both.
“My Principal stated, “We did not take any bank loan facility for four years,’ in the third paragraph of the speech from the rear. However, we benefited from the N3 billion per month federal government intervention for six months to mitigate the impact of budget support facility and salary bailout deductions accessed by the previous administration, much as we have paid N97 billion from the overall debt we inherited in 2018.
“I want to think that’s what they’ve twisted into loan now. All 36 of the Federation’s states were included in this initiative. Additionally, the six-month period of N3 billion every month began prior to the July 16 governorship election. This can be proven to be true.
By the way, on November 27, when he assumed office, Governor Adeleke declared the freezing of all government accounts. He has not yet made an announcement that the accounts have been unfrozen. Nevertheless, they have been using funds from state government coffers ever since. So, from where does the money come?
Omipidan continued, “This is where you would know that people around the governor are a bunch of liars who are not preparing grounds for government but preparing excuses and non-performance.
By the way, on November 27, when he assumed office, Governor Adeleke declared the freezing of all government accounts. He has not yet made an announcement that the accounts have been unfrozen. Nevertheless, they have been using funds from state government coffers ever since. So, from where does the money come?
Omipidan continued, “This is where you would know that people around the governor are a bunch of liars who are not preparing grounds for government but preparing excuses and non-performance.
