[size=14pt]Osun State is bankrupt, says Governor Rauf Aregbesola [/size]
From AKEEB ALARAPE, Osogbo

Thursday, December 23, 2010
…State needs N1 bn loan to pay workers’ salary


[img]http://odili.net/news/source/2010/dec/23/sun/aregbeoyinlola[1].jpg[/img]
…Osun can’t be bankrupt –Oyinlola

The reality of the parlous financial status of Osun State came to the open yesterday as the state governor Mr. Rauf Aregbesola, disclosed that he met not only an empty treasury but an insolvent state.

The governor, who spoke during a meeting with leaders of Christian Association of Nigeria (CAN), disclosed that the state needs N360 million to service its debts every month and a loan of N1 billion for payment of workers’ salary and other statutory obligations.

But in a swift reaction, former governor Olagunsoye Oyinlola in a statement signed by his media aide, Mr. Lasisi Olagunju, dismissed Governor Aregbesola’s claim. According to him, “government is a continuum. Osun is not and cannot be bankrupt. When you take over a government, you take over both assets and liabilities.

Oyinlola did not leave just liabilities, he left about N7 billion in government coffers from the loan approved by the House of Assembly. He did not leave any salary arrears unlike when he came in 2003 and inherited a lot of debts including three months unpaid salaries and N2.5 billion unpaid gratuities of workers retrenched by his predecessor. Oyinlola paid all. The new government is advised to also look for ways to generate funds to fulfil its pledge to those who elected it.”

Aregbesola, who described the financial situation of Osun State as ‘disturbing and unacceptable’, pleaded with CAN leaders to appeal to their congregation to be patient with his government in view of the situation he met on ground.

The governor frowned at the mountain of debts he inherited from his predecessor and lamented the level of poverty prevailing in the state due to lack of vision of previous administration in the state. His words: “The simple truth is that our state has been badly managed. I am not running anybody down. With the level of poverty here, it is unacceptable for anybody to make the building of stadia as priority.”


http://odili.net/news/source/2010/dec/23/512.html

Who is telling the truth. It is high time figures are released and culpability passed those who are culpable . Until we will start to prosecute illegal office holders Nigeria will see no change.

You see this arrogant looters!! They have drain us dry.

You see this arrogant looters!! They have drain us dry.

@ Blacksta

Blacsta I Totally agree with you!! All this blame throwing by both parties without any proper documentation or receipts brought from either so that third parties can clearly see is akin to blowing hot air. Aregbesola can take court action if he feels wronged and has documentation to support it, else at the very least he can publicise the financial health of the state to support his claim.

You can see the cases of Arik air and National airspace management agency (NAMA), Bi-Courtney and FAAN, etc where each party claims being wronged but is unable to support its claim. Does it mean deals were done verbally without mutually accepted signed contracts in Nigeria?

When Union bank was accusing Jimoh Ibrahims company of defaulting on a loan, Jimoh Ibrahim quickly published the true state of accounts with receipts and tellers as proof in Thisday newspaper. Up till now i've not heard any retort from Union Bank except they tried to get a retraction of the publication because it was damaging their name.

y r political parties devoted to 'de-marketing' each other.

All ds is just a ploy 2 get d citizens 2 dislike/hate d oda party.

No evidence 2 back d claims up

Is that a surprise?It's filled with thieves and Aregbesola has come to chop his share as well.

Did anybody got the gist of the statement credited to Lasisi Olagunju, Oyinlola's press secretary? He said and I quote

Oyinlola did not leave just liabilities, he left about N7 billion in government coffers from the loan approved by the House of Assembly.

. The import of this statement in my understanding, is that the government was not living within its income: it was living on borrowing to supplement its income. The question becomes what happens to the monthly allocation it receives from the fed? What about the internally generated revenues or is the state not economically viable?
There is a case of mismanagement of government revenues here and it bothers on incompetence and misplaced priority. Aregbe mentioned about financing Stadia (obviosuly for corrupt enrichment purposes) when the resources of the state is not even sufficient to finance its current and maturing obligations. The last time I checked, the same Oyinlola was a military governor of the Lagos State and nobody can point to what he achieved while he held sway at Alausa. He was a complete failure. We all knew what his contemporaries did - Brig Maruwa, Tinubu while they held office and now Raji Fashola.