A fresh political row erupted in Osun State on Tuesday as the All Progressives Congress (APC) and Governor Ademola Adeleke traded accusations over an alleged plan by the state government to secure a N300 billion loan from a commercial bank.
The opposition APC claimed the Adeleke administration was plotting to use local government funds as collateral to obtain the loan.
In a statement issued by the state APC chairman, Tajudeen Lawal, the party alleged that it had uncovered plans by the governor to access the funds through a commercial bank in the state.
Lawal said the alleged move followed the governor’s loss of legal battles over the control of local government councils across the state.
According to him, the governor and his close aides had convened a meeting involving Peoples Democratic Party (PDP) elected council officials and senior local government career officers in a bid to secure their support for the alleged plan.
“There is no justifiable reason for the Adeleke-led government to deliberately plunge the state into avoidable debts which generations unborn would be forced to repay,” Lawal said.
He warned commercial banks against participating in what he described as an illegal arrangement and urged stakeholders in the state to call the governor to order.
Lawal further argued that such borrowing would violate provisions of the Debt Management Office Act of 2003, which stipulates that local governments cannot obtain loans without approvals from the Federal Minister of Finance, the Accountant-General of the Federation and the relevant local government executive councils.
The APC also accused the governor of attempting to divert funds meant for grassroots development for what it described as frivolous purposes.
However, the Osun State Government swiftly dismissed the allegations as false and politically motivated.
In a statement, the governor’s spokesperson, Olawale Rasheed, denied that the administration had any plan to obtain a N300 billion loan using council funds.
Rasheed accused the APC of spreading misinformation to distract from what he described as the party’s alleged role in withholding local government funds in the state.
“The governor’s office outrightly denies any such loan plan with any commercial bank,” Rasheed said.
He further alleged that the opposition party was attempting to cover up its own actions involving the alleged diversion of over N250 billion belonging to Osun local governments.
Rasheed also accused the APC of orchestrating the occupation of council secretariats and diverting local government funds to political allies.
According to him, the administration of Governor Adeleke is focused on addressing financial, infrastructural and social challenges inherited from the previous government led by former governor Adegboyega Oyetola.
The spokesperson added that those allegedly involved in the diversion of local government funds would face both legal consequences and electoral backlash from voters in the state.