Paragraph 1: Allegations of Misappropriation of World Bank Grant
The Osun State Government has formally accused former Governor Gboyega Oyetola, now the Minister of Blue Economy, of mismanaging a $20 million World Bank health grant. The government lodged a petition with the Economic and Financial Crimes Commission (EFCC), alleging that Oyetola and a special Health Intervention Committee he chaired misused the funds intended for improving healthcare facilities in the state. The committee, composed of former government officials, decided to allocate the entire grant towards renovating 320 primary health care centers across Osun State. However, the state government contends that the process of awarding contracts for these renovations was marred by irregularities and violations of the Public Procurement Act of 2007.
Paragraph 2: Breaches of Procurement Processes and Contract Awards
The core of the Osun State Government’s accusations centers on the alleged disregard for established procurement procedures. The petition, drafted by lawyer Pelumi Olajengbesi, asserts that Oyetola failed to initiate a competitive bidding process as mandated by the Public Procurement Act. Instead, contracts were allegedly awarded to individuals within Oyetola’s inner circle, including cabinet members, agency heads, proxies, and cronies. These individuals reportedly presented themselves as representatives of newly incorporated or inactive companies, raising concerns about their capacity and legitimacy to undertake such projects.
Paragraph 3: Questionable Contractors and Substandard Work
Further deepening the controversy, the petition names specific companies that benefited from the contract awards, highlighting their lack of experience in the construction sector. These businesses, allegedly owned by individuals with backgrounds in food vending, salon operations, supermarket management, and web design, raise serious questions about their suitability for construction projects. The state government claims that these companies, despite lacking relevant expertise, received full payment for their contracts, while the renovation work executed was allegedly of substandard quality. This, the government argues, constitutes a misappropriation of the $20 million grant intended for improving healthcare infrastructure in the state.
Paragraph 4: Money Laundering Allegations and Financial Irregularities
In addition to the misappropriation allegations, the Osun State Government also accuses the Oyetola administration of money laundering involving over ₦1.5 billion. The petition alleges that these funds were channeled through the Osun chapter of the Association of Local Governments of Nigeria (ALGON) between January and October 2022. Key figures implicated in the alleged scheme include former ALGON Chairman Abiodun Idowu, Secretary Olubisi Oladosu, 28 former local government caretaker chairmen, and former Commissioner for Local Government and Chieftaincy Affairs, Yekeen Adebayo Adeleke.
Paragraph 5: Tracing the Flow of Funds and Cash Withdrawals
The state government further alleges that financial records reveal a pattern of suspicious transactions involving significant sums of money. The petition points to repeated transfers from the ALGON account at Zenith Bank to the private account of Akeem Ibitoye, a local government employee and Director of Finance at Ejigbo Local Government. Large cash withdrawals, ranging from ₦30 million to over ₦10 million per day, were allegedly made from this account, raising concerns about their purpose and lack of documentation. The state government asserts that no records exist to demonstrate that these funds were used for legitimate official projects, further strengthening their allegations of financial impropriety.
Paragraph 6: Response from the Accused and the Path Forward
In response to the allegations, former Commissioner Adebayo Adeleke has denied any wrongdoing, characterizing the accusations as frivolous and politically motivated. He claims to have not yet received a copy of the petition or been contacted by the EFCC. Adeleke suggests that the allegations are an attempt to discredit him and silence his criticism of the current administration. The EFCC’s investigation will be crucial in determining the veracity of the allegations and holding those responsible accountable if any wrongdoing is discovered. The outcome of this investigation will have significant implications for the individuals involved and the public’s trust in governance in Osun State.
