The Osun State chapter of the Peoples Democratic Party (PDP) has challenged Gboyega Oyetola, the state governor, to reveal the true financial position of the state following its rising debt profile.
The Osun PDP made the call in a statement issued by Sunday Bisi, its state Publicity Secretary, on Sunday in reaction to the latest deductions in the net allocations to the 36 states of the federation as published by the Federal Account Allocation Committee (FAAC) for the first three months of the year 2020.
According to the major opposition party, there has been a huge deduction from monthly allocation accruing to the state since the present administration was inaugurated.
The party claimed that the FAAC publication showed that the state had a net accrual of N6.4 billion, but had N5.87 billion deducted for debt servicing, representing an average of N2 billion per month as debt obligations or 91 per cent of the total allocation.
The party alleged that the state had been plunged into insolvency without corresponding deliverables in terms of infrastructures owing to the loans obtained from various sources.
The statement read: “Our party finds it curious and extremely worrisome the continued refusal of the state government to avail the people of the State the actual debt profile of the state.
“It beats all accounting imagination and indices for a state like Osun to be obligated to debt servicing to the tune of N2billion every month considering the fact that most of these loans were said to be negotiated on long term basis even when some of the loans are still on moratorium.
“The most curious aspect of the financial quagmire is that, almost all the projects attached to the procurement of these loans on behalf of the state and for which the state now refund to the tune of 91 per cent of its statutory earnings have not seen the light of day several years after the contracts duration and obnoxious reviews.”
But in its reaction, the Osun State government said the present administration operates an open-door policy, insisting that the state’s financial records are balanced.
Taiwo Akeju, Commissioner for Political Affairs and Intergovernmental Relations, said the PDP must first put its house in order before criticising the Oyetola administration.
He said: “Tell PDP to put its house in order before it would venture into difficult task of criticising Oyetola administration. Already, two people are laying claim to the seat of chairman of the party in Osun. Does that portray them as serious? The answer is no.
“Regarding their request for details of Osun’s finances, our door as a government is open. They are free to move around to see what we are doing. I just advise them not to attempt spilling over confusion in their party to the people of the state. I also want to tell them, if they dont know, that we have been meeting all our obligations as government even with the limited resources available to us.”