By John Dike, Osogbo
Osun State chapter of the All Progressives Congress (APC) has accused Governor Ademola Adeleke of planning to secure a N300 billion loan from Unity Bank Plc using the state’s 30 local government councils as collateral, describing the alleged move as illegal and unpatriotic.
In a statement issued on Monday and signed by the state APC Chairman, Sooko Tajudeen Lawal, the party alleged that the Adeleke-led administration was plotting to plunge the state into what it described as an avoidable debt burden.
According to the statement, Governor Adeleke and members of his cabinet on Monday reportedly summoned individuals the APC described as “illegal local government council chairmen” elected under the Peoples Democratic Party (PDP), alongside Heads of Local Government Administration (HLAs), Directors of Administration (DAs) and Heads of Finance (HFs) across the 30 local government areas and the Area Office to a meeting at the State Secretariat, Abere.
The APC claimed that at the meeting, the state government allegedly disclosed its intention to borrow N300 billion from Unity Bank Plc, using the 30 local government councils as collateral for the loan.
The party further alleged that the administration promised to reward cooperative senior career officers in the local government system if the borrowing plan succeeds.
The opposition party argued that the move would amount to deliberately plunging the state into a huge and avoidable debt that future generations would be forced to repay.
The APC also insisted that the alleged plan violates the autonomy of local governments as recognised by the Supreme Court, stressing that the state government lacks the legal authority to use local councils as collateral for loans.
Lawal noted that the party had earlier warned against what it described as attempts by the Adeleke administration to control local government councils through “backdoor means” following what it called unfavorable court judgments on the matter.
The party therefore called on stakeholders in the state to condemn the alleged plan, warning that it could worsen the financial burden on residents.
The APC also cautioned the management of Unity Bank Plc to be wary of entering into any agreement that involves using local government councils in Osun State as collateral.
According to the statement, the party maintains that the legally recognised council executives in the state remain the APC local government chairmen and councillors who were reinstated by the Court of Appeal and have been performing their duties over the past year.
The party further argued
that any agreement entered into with what it described as illegal council officials would amount to a nullity under the law.
The APC added that the alleged move contravenes provisions of the Debt Management Office Act 2003, which it said requires approvals from the Federal Minister of Finance, the Accountant-General of the Federation, and the executive councils of the respective local governments before such borrowing can take place.
The party urged Governor Adeleke to reconsider the alleged plan, warning that the state should not be run in a manner that could jeopardise its financial future or undermine the rule of law.
