Osun’s N18.38bn loan: Former head of service denies involvement

O sogbo - Mr Segun Akinwusi,  the former Head of Service in Osun, has denied involvement in the procurement of N18.38 billion loan by the state government in 2010.

The loan was obtained during the administration of Prince Olagunsoye Oyinlola.

Akinwusi  made the denial in Osogbo on Tuesday while giving evidence before the panel of inquiry set up by the state government to unravel the circumstances that led to the procurement of the loan.

The panel is headed by Prof. Femi Odekunle.

The former number one civil servant told the panel that during his stint in government, he was always against the government taking loans to finance social projects.

He said that he was not `carried along’ when the former administration was processing the loan.

He described the conception and implementation of the facility as `scandalous and messy,’ saying that he did not comment on the issue during the period “because it was a done deal matter“.

Akinwusi admitted that the matter was discussed on several occasions at executive council meetings during the period but that he was not carried along.

However, in his evidence, Mr Femi Farounbi, the former chairman, Finance and Appropriation Committee in the state legislature, described the conception of the loan as `okay.’

He said that was the reason the assembly approved the facility.

He said it was the legislature that advised the governor to source for the loan to finance the budget when allocation from the Federal Government and internally generated revenue were not enough.

Farounbi said the legislature approved the loan in the `best interest of the state’’.

He, however, expressed doubt on the rationality of some of the projects the money was spent on, such as the construction of six stadia in the state.

In their submission, the management of United Bank for Africa, led by Mr Samuel Adikamkwu, told the panel that due process was followed before the bank granted the loan to the government.

Adikamkwu affirmed that N229 million was paid upfront by the government as management and processing fees.

He said that five other banks were invited by the state Accountant-General for submission of proposal when the government needed the loan.

He said that a total of N10.8 billion was drawn by the government from the N18.38 billion loan before the agreement was terminated by the present administration in March 2011. (NAN)