The Osun State Chapter of the All Progressives Congress (APC) has warned Unity Bank PLC against entering into any agreement with the State Government over an alleged plan to secure a N300 billion loan using the State’s Local Government Councils as collateral.
The party, in a statement issued on Tuesday by Tajudeen Lawal, its State Chairman, alleged that the Administration of Governor Ademola Adeleke was planning to use the 30 Local Government Councils in the State as collateral to obtain the loan.
According to Lawal, the governor and members of his Cabinet on Monday convened a meeting at the State Secretariat, Abere, with the People’s Democratic Party (PDP) Local Government Chairmen, Heads of Local Government Administration, Directors of Administration and Heads of Finance from the 30 Councils and the Area Office, where the intention of the State Government to borrow the money was disclosed to the top Local Government Career Officers, adding that each of the Councils would be used as collateral.
He noted that there’s no justifiable reason for the Adeleke-led Government to go to such route of deliberately and wickedly plunging the State into avoidable debts which generations unborn would be made liable for its repayment.
“The unsavoury development is tantamount to Governor Adeleke’s pungent abhorrence for the rules of law since it is known to all and sundry that the Highest Court in the land has made a pronouncement, granting an unconditional autonomy for the Administration of the Local Government Councils nationwide.
“We implore all the discerning minds in the society to condemn the illegal activity of the Governor Adeleke-led administration to use the local government councils which the Supreme Court has deprived him of having an authority on as a collateral to borrow a huge and staggering amount of N10 billion per local government amounting to N300 billion”, he alleged.
Lawal however, warned the Management of the Unity Bank PLC to be wary of the fact that it is a settled law that the States don’t have such Authority on the Local Government Councils and that any of such deals is an illegality which is not binding either now or in the foreseeable future.
He further warned the Management of Unity Bank PLC that any contract entered into by them with the illegal Council chairmen is a nullity as the reinstated APC chairmen are the only ones known to the law of the land.
The APC chairman therefore called on stakeholders in the state to intervene and stop what it described as an illegal move capable of plunging the state into avoidable debt.
“We, as a party, are condemning the deliberate unpatriotic plans of Governor Adeleke to add to the burden of the people of the state by illegally scheming to squander the money meant for the development of the grassroots on frivolous issues which could not be in the interest of the people of the state.The development is in clear contravention of the Debt Management Office Act 2003, which specifies that the local government cannot borrow such money without the signature of the Federal Minister of Finance, the Accountant-General of the Federation and the executive councils of the local governments, that is, the reinstated APC chairmen and councilors”, he added.
Responding to the allegation, Olawale Rasheed, the governor’s spokesperson, denied any such loan plan with the Unity Bank alongside the council chairmen, saying APC is scheming to divert alleged hijacking and illegal disbursement of parts of over N250 billion belonging to Osun Local Governments.
He said, “Osun APC and the UBA are already facing criminal trial over their mishandling of Osun LG Fund. Those who diverted and squandered Osun LG fund will surely be brought to book. Justice will surely be served.
“The mob occupation of the Council Secretariats and the diversion of LG funds into pockets of cronies are major albatross for Osun APC and its chieftains. Osun voters and the law won’t spare all those involved. Aside legal accountability, Osun voters will electorally punish APC impostors and illegals inflicting hardship on Osun grassroots.
“Osun State Government under Governor Adeleke is not in the business of criminal deals with financial institutions like the Osun APC. Mr Governor is fixated on completely cleaning up the fiscal, infra and social mess inherited from the Oyetola / ABO Administration.”
