The Osun State Government has recently lodged a formal complaint with the Economic and Financial Crimes Commission (EFCC) against the former governor and current Minister of Blue Economy, Gboyega Oyetola. The petition alleges that Oyetola misappropriated a $20m World Bank health grant intended for the improvement of the health sector in the state. In addition to financial misconduct, the government also accuses Oyetola of money laundering and violations of the Public Procurement Act during his tenure as governor.
Questionable Allocation of Funds
The petition, dated March 7, 2025, and attributed to the government’s lawyer, Pelumi Olajengbesi, outlines a series of irregularities in the disbursement of the grant funds. Oyetola, in his capacity as chair of the Health Intervention Committee, oversaw the allocation and utilization of the $20m grant. The committee, comprised of former government officials like Remi Omowaye, Dr. Rafiu Isamatu, and Bola Oyebamiji, purportedly decided to allocate the entire sum towards renovating 320 primary health care centers throughout the state.
According to the petition, the renovation process involved significant construction and structural modifications to modernize these health centers. However, the government alleges that Oyetola failed to follow the Public Procurement Act, 2007, which mandates a competitive bidding process for such contracts. Instead, contracts were reportedly awarded to individuals closely associated with Oyetola, including cabinet members, government agency heads, and acquaintances who lacked construction experience.
Allegations of Money Laundering
Beyond the misuse of the health grant, the petition also raises concerns about money laundering activities involving over ₦1.5 billion through the Osun chapter of the Association of Local Governments of Nigeria. The petition specifically names former ALGON Chairman, Abiodun Idowu, Secretary Olubisi Oladosu, 28 former local government caretaker chairmen, and former Commissioner for Local Government and Chieftaincy Affairs, Hon. Yekeen Adebayo Adeleke, in connection with the alleged financial impropriety.
Financial records cited in the petition point to large sums being funneled from the ALGON account at Zenith Bank into the private account of Akeem Ibitoye, a local government employee and Director of Finance at Ejigbo Local Government. Withdrawals of varying amounts, sometimes exceeding N10 million per day, were reportedly made in cash without proper documentation of expenditure on official projects.
In response to the allegations, Adebayo dismissed them as baseless and politically motivated. He expressed skepticism about the validity of the claims, attributing them to personal vendettas and attempts to tarnish his reputation. Adebayo emphasized the lack of concrete evidence supporting the accusations and suggested that they were intended to undermine his credibility and challenge his political standing.
In light of these serious allegations, the EFCC is expected to conduct a thorough investigation to ascertain the veracity of the claims and determine the appropriate course of action. The outcome of this inquiry will have far-reaching implications for the individuals implicated in the petition and could potentially reshape the political landscape in Osun State. As the public awaits further developments in this unfolding saga, transparency, accountability, and adherence to due process remain paramount in addressing allegations of corruption and financial malpractice.