Aregbesola Collected N480Billion Loan and Squandered it; Omisore Reveals

A former Deputy Governor of Osun State, Senator Iyiola Omisore, has said the administration of Governor Rauf Aregbesola took a loan of over N480bn from various sources since he assumed office in 2010. Omisore said this at a press conference in Ile Ife..

Omisore, who is the governorship candidate of the Peoples Democratic Party in the state during the August 9, 2014 governorship election, accused Aregbesola of financial recklessness and lack of proper planning.

According to him, the loan burden and the alleged continuous wasteful spending by the governor are some of the reasons the administration has been unable to pay workers for the past seven months.

Continue

Omisore said, “The principal debt of Osun State under Ogbeni Rauf Aregbesola is N480bn. They took N300bn loan, by taking N10bn for each of the 30 local government councils.

“They first raised N60bn bond and later raised another N40bn bond. They borrowed for O’meal project, borrowed for school uniform project and borrowed for airport project.

“They borrowed another N25bn. But the principal debt is N480bn. You will remember that we were saying this before this financial crisis reached this height.

“While we took N14.4bn Sukuk bond in two tranches, the state government also approached the capital market for a N30bn loan.

He added, “For instance, the Gbongan-Akoda Road; Osogbo-Ila-Odo-Kwara-Boundary Road which Omisore has fraudulently put at a cost of N102bn all together, cost a bit higher than N60bn. While the Gbongan-Akoda-Osogbo Road costs N29.2bn; the Osogbo-Ila-Odo-Kwara Boundary is to gulp N17.8bn while the Oba Adesoji Aderemi Second Bye-pass Road will cost N14.5bn.