Osun Government Petitions EFCC Over Alleged Mismanagement Of $20M World Bank Grant

Former Governor Oyetola Accused of Financial Misconduct

The Osun State Government has officially petitioned the Economic and Financial Crimes Commission (EFCC) to investigate former governor and current Minister of Blue Economy, Gboyega Oyetola, over allegations of mismanaging a $20 million World Bank health grant.

Governor Ademola Adeleke’s administration accuses Oyetola of financial misconduct, money laundering, and violating the Public Procurement Act in handling funds meant for improving Osun State’s healthcare sector. The petition, dated March 7, 2025, claims that contracts for renovating 320 primary healthcare centers were improperly awarded to Oyetola’s associates without competitive bidding.

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Allegations of Contract Fraud

According to the petition, Oyetola chaired a special Health Intervention Committee that controlled the grant’s allocation. Instead of following due process, the petition alleges that the former governor awarded contracts to his cabinet members, government agency heads, and personal associates, many of whom had no prior experience in construction.

The petition, submitted by the state government’s lawyer, Pelumi Olajengbesi, states:

“In flagrant violation of the Public Procurement Act, Oyetola did not call for bidding as required. Rather, he awarded contracts to individuals who were either his cabinet members, government agency heads, or personal proxies who registered inactive business names just to secure these contracts.”

Questionable Companies Named in the Petition

The government provided a list of businesses that allegedly received contracts despite lacking construction experience. Some of the named entities include:

• Poshpreneurs Nig. – Allegedly owned by the children of former Head of Service Olowogboyega Oyebade.
• Dotfam Multiventures Ltd – Allegedly linked to the siblings of a former APC State Chairman.
• The Ice Firms Nig. Ltd – Reportedly owned by former Commissioner for Local Government and Chieftaincy Affairs, Adebayo Adeleke.
• Afamoks Web International – Allegedly linked to former Amotekun Field Commander, Amitolu Shittu.

The petition further claims that businesses such as food vendors, salon operators, supermarket owners, and web designers were contracted for construction projects, leading to substandard renovation work while receiving full contract payments.

₦1.5 Billion Allegedly Laundered Through ALGON

The Osun State Government also accuses Oyetola’s administration of laundering over ₦1.5 billion through the Osun chapter of the Association of Local Governments of Nigeria (ALGON) between January and October 2022.

The petition names several key figures allegedly involved, including:

• Former ALGON Chairman, Abiodun Idowu
• Former ALGON Secretary, Olubisi Oladosu
• 28 former local government caretaker chairmen
• Former Commissioner for Local Government and Chieftaincy Affairs, Hon. Yekeen Adebayo Adeleke

The petition alleges that financial records reveal repeated large cash withdrawals from ALGON’s Zenith Bank account (Account Number: 1016607858) into private accounts. One such recipient was Akeem Ibitoye, a Director of Finance at Ejigbo Local Government, who allegedly withdrew sums ranging from ₦10 million to over ₦30 million per day without clear documentation on how the funds were spent.

Oyetola’s Camp Dismisses Allegations as Political Persecution

Former Commissioner Adebayo Adeleke has denied the allegations, calling them baseless. He stated:

“EFCC has not invited me, and I have not seen a copy of the petition for me to know what it is all about. If there is no proof, then the allegations are frivolous.”

He also accused Governor Adeleke of political persecution, claiming that the PDP is using these allegations to silence opposition voices.

“I have become a thorn in the flesh of Governor Adeleke and the PDP. They think trying to dirty my white garment will make me keep mute about their fraudulent ways of governance.”

Awaiting EFCC’s Response

As the EFCC reviews the petition, Nigerians are watching closely to see if the anti-corruption agency will launch a formal investigation into the alleged mismanagement of the $20 million World Bank grant.

The case has further deepened the political rivalry between Governor Adeleke’s PDP-led government and Oyetola’s APC-led administration, raising questions about accountability, governance, and transparency in Osun State.