APC accuses Adeleke of plan to use LGs as collateral for N300bn loan

From Lateef Dada, Osogbo

Osun State chapter of the All Progressives Congress (APC) has accused Governor Ademola Adeleke of plotting to use the state’s 30 local government areas as collateral to secure a N300 billion loan from Unity Bank Plc.

The APC state chairman, Tajudeen Lawal, said party sources told him that Governor Adeleke and members of his ‘kitchen cabinet’ invited all the Peoples Democratic Party (PDP) elected local government chairmen, Heads of Local Government Administration (HLAs), Directors of Administration (DAs) and Heads of Finance (HFs) to a meeting at the State Secretariat, where the loan intention was reportedly disclosed.

Lawal alleged that each council would be pledged as security for the proposed N300 billion facility and said promises were made to ‘handsomely’ take care of senior cooperative council career officers. He warned Unity Bank against transacting with what he described as ‘unrecognised’ council chairmen and condemned the plan as an unlawful attempt to saddle future generations with debt.

Accusing the governor of flouting the spirit of local government autonomy affirmed by the country’s highest court, Lawal said: “There’s no justifiable reason for the Adeleke‑led government to deliberately and wickedly plunge the state into avoidable debts which generations unborn would be made liable to.”

He urged the public to condemn what he called an illegal activity that would amount to N10 billion per local government.

However, Governor Adeleke dismissed the allegation as a baseless rumour and accused the APC of trying to distract attention from the alleged misappropriation of over N250 billion in Osun local government funds.

In a statement by his spokesperson, Olawale Rasheed, Adeleke denied any plan to borrow N300 billion with the council chairmen or to use local governments as collateral. He mocked the APC over what he described as the hijack and illegal disbursement of parts of the Osun local government fund and warned that those responsible would face legal consequences.

“Osun APC and the UBA are already facing criminal trials over their mishandling of the Osun LG Fund. Those who diverted and squandered Osun LG funds will surely be brought to book,” the governor’s office said, alleging past diversion of LG funds into the pockets of cronies.