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Aregbesola, Oyinlola appear at probe panel  print

Published on September 13, 2012 by   ·   4 Comments

Olagunsoye Oyinloa: case adjourned

Governor Rauf Aregbesola and his predecessor, Olagunsoye Oyinlola of Nigeria’s State of Osun have given testimony before a probe panel on the controversial N18billion loan taken by the Oyinlola administration.

While Oyinlola said that the financial needs of the state was responsible for the procurement of N18.38 billion loan by his administration in 2010, Aregbesola said the timing of the loan and deployment were the issues.

Both men spoke before Prof. Femi Odekunle panel of inquiry set up by the state government to investigate the circumstances that led to the procurement of the loan.

The committee, sitting in Osogbo, the capital, is to also look into other financial transactions that occurred between 2003 and 2010.

The former governor said, “Decrease in the federal allocation to states in 2009, when the crises in the Niger Delta was very pronounced affected oil production, which is the main source of the nation’s economy.

He added that the issue of new minimum wage and the need to embark on other developmental projects required funds for its implementation.

“At that time, salaries of civil servants and pensions consumed 90 per cent of the earnings of the state and the leadership of the state House of Assembly advised us to take the loan to address germane issues of 2010 budget .

“As a responsible and responsive government, we took the advice of the legislature, then analyse the projects that would have impact on the lives of the people of the state and arrived at N18.38 billion.

“Memo was taken and passed by excecutive council and approval of the House of Assembly was sought and obtained since it is practically impossible to summon every citizen of the state to take a decision on it.

“The constitutional voice of the people is the House of Assembly, which means the people of Osun took the loan by the approval of their representatives in the House,” Oyinlola explained.

The former governor further said that he lacked power to unilaterally take decision on the affairs of the state.

On the upgrading and rehabilitation of nine Technical Colleges contracts, Oyinlola said “what informed our decision was the inability of government to provide employment for unemployed graduates.

“We intended to upgrade the colleges so that these jobless graduates would go there and pick a trade and become employers of labour,” he said.

Oyinlola said that the poor performance of students in science subjects and Mathematics made his administration to award contract for kits for the use of pupils in primary and secondary schools.

On the the six stadia projects, the governor said that it was the youths of the state that called the attention of its administration to the development of sports, during one of the open forum programme organised by his government.

He added that if equality was anything to go by, infrastructural development must be replicated in each of the zones across the state.

Oyinlola said that his intention was to pay off the loan before the end of his tenure.

Gov. Rauf Aregbesola said his administration inherited the N18.38 billion loan from UBA and renegotiated the loan with First Bank, which provided convenient credit line.

“There may be nothing wrong in government taking a loan facility, it is the hasty draw-down at once, thereby exposing the state to cut-throat interest payments on money not needed for utilisation and merely lying fallow in the same bank,” he said.

According to him, there was no way the state could continue to meet its social service obligations such as education, health services, security without restructuring the terms of the loan.

“Even though, a credit line of N25 billion was offered by First Bank of Nigeria Plc, only N8.6 billion was drawn-down to pay the UBA Plc,” Aregbesola said.

He said that the N18.38 billion loan would not have been necessary, if the excess crude oil accrual to the state was well managed.

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Posted by on September 13, 2012, 8:17 pm. Filed under Metro, National, News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

4 Comments for “Aregbesola, Oyinlola appear at probe panel”

  1. This is the trade mark of PDP president Jonathan currently abusing their office and borrowing loans for their personal looting,stealing and embezzlement to get rich at the expense of the impoverished people of Nigeria.
    Former Osun State governor Oyinlola really messed up and possesses no good credibility as evidenced through all PDP state governors,president and lawmakers who have been embezzling and looting nigerian commonwealths just like current president clueless,incapable and incompetent president Ebele Jonathan and his inept ministers who are foistering poverty and future debts in foreign loans upon Nigerians home and abroad.They shall all pay darely for their crimes at the right time.PDP are criminals in governance right from president jonathan and his predecessors.

    Dr Pat Kolawole Awosan,
    Writes from Canada.

  2. elijah

    WE KNOW ALL OF YOU WRITING FROM A HAMLET IN EPE ISLAND AND POSING AS LIVING IN CANADA. FRANKLY SPEAKING, AN EDUCATED MAN DOES NOT PUT HIS LOCATION WHEN MAKING A COMMENT IN AN ARTICLE, EXCEPT HE IS SUFFERING FROM INFERIORTY COMPLEX. COMING BACK TO AREGBESOLA, AKA OSAMA BIN LADEN, THE MAN DOES NOT HAVE A PROGRAMME FOR OSUN STATE AND HE NEEDS TO CREATE MORE CONFUSION IN ORDER TO BUY TIME AND AT THE END OF THE DAY, USE AS MANY ALIBI AS POSSIBLE. ONE OF THE FIRST THING HE DID WHEN HE GOT TO THE OFFICE WAS TO CHANGE OSUN STATE TO THE STATE OF OSUN. I WONDER WHAT THIS HAS TO DO WITH GOVERNANCE? . TH E LOAN HAS BEEN TAKEN AND ONE THINKS, THE STATE SHOULD DISCUSS THE RESCHEDULING OF THE LOAN AND THE TERMS OF THE LOAN WITH THE BANKERS INSTEAD OF THE SETTING UP OF A WITCHUNTING AND MONEY WASTING COMMITTEE.. (D) AWOSAN SHOULD REALISE THAT EMEBEZZLENT CUTS ACROSS ALL THE PARTIES IN NIGERIA AN ISOLATING A PARTY FOR CASTIGATION ALWAYS SPEAKS VOLUME ABOUT HIS DOCTORATE DEGREE.

  3. Ben

    Frankly speaking,Elijah,what is your take on this issue? Are you making excuses for legalized armed robbers who looted government or you are saying it is proper for government officials to rob the states? It is so pathetic to see people like you who sacrifice the future of Nigerian youth because of what they want to eat now! Political parties affiliations aside,everybody knows the stock in trade of Nigerian politicians,when they have the feelers that their game is up,they will look for any means to steal large some of money,which is what inadvertently happened here. At least everybody has seen what Oyinlola did(stealing,lying and looting),why dont you wait till Aregbesola’s term expires until you judge him .Renegotiating a loan that should not ha been taken is not a good enough consolation for any patriotic government . A loan is a debt and has to be repaid eventually and it ties up the arms of government to help the youth especially or to carry out any meaningful development. Am not from Osun State and i dont live in Nigeria,but the fact is Oyinlola is a disgrace to Nigeria at large ,posterity will judge him. PDP politicians are typical in their selfish ,greedy and un-patrotic ,destructive way of ruling ,Jonathan is another classical example. The non-performing idiot first tried to extend his shameful government by introducing the 3rd term idea,when that failed,he tried to introduce 7 years single term.When he failed in that direction,he keeps looting and enriching his fellow crooks in Niger Delta region by awarding bogus contracts to criminals that suppose to be in jail. Only Jonathan can run round the whole world when his country is boiling,people getting killed by Boko haram.Well,such frolicking can only be explained by a determined resolve of greedy president to lodge his ill gotten wealth all over the world. God will hold all you who are looting Nigeria wealth to account one by one(AMEN)

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