The Osun State Government has officially petitioned the Economic and Financial Crimes Commission (EFCC) to investigate the former governor and current Minister of Blue Economy, Gboyega Oyetola, over allegations of financial mismanagement, money laundering, and procurement violations linked to a $20 million World Bank health grant.
The petition, dated March 7, 2025, and obtained by our correspondent, accuses Oyetola of diverting public funds meant for critical healthcare improvements. The document also implicates several former government officials in a scheme that allegedly funneled contracts to unqualified businesses, leading to substandard renovations of health facilities across the state.
Allegations of Procurement Fraud and Nepotism
According to the petition, during his tenure as governor, Oyetola chaired a special Health Intervention Committee responsible for overseeing the disbursement and execution of the World Bank grant. The committee, which included former officials such as Remi Omowaye, Dr. Rafiu Isamatu, and Bola Oyebamiji, decided to allocate the entire $20 million towards the renovation of 320 primary health centers in Osun State.
However, the state government claims that the former governor and his team violated the Public Procurement Act of 2007 by failing to initiate a competitive bidding process for the renovation projects. Instead of selecting qualified contractors through due process, the contracts were allegedly awarded to individuals with close ties to the administration, including cabinet members, agency heads, and personal associates of Oyetola.
The petition names several companies that received contracts despite lacking relevant experience. These include:
- Poshpreneurs Nig., reportedly owned by the children of the former Head of Service, Olowogboyega Oyebade.
- Dotfam Multiventures Ltd, allegedly linked to the siblings of the former APC State Chairman.
- The Ice Firms Nig. Ltd, purportedly owned by Adebayo Adeleke, the former Commissioner for Local Government and Chieftaincy Affairs.
- Afamoks Web International, linked to the former Amotekun Field Commander, Amitolu Shittu.
The government alleges that these companies, which specialize in areas such as food vending, salon operations, and web design rather than construction, delivered shoddy renovation work while receiving full contract payments. This, the petition claims, led to the misappropriation of the $20 million grant, depriving Osun residents of much-needed healthcare improvements.
Accusations of Money Laundering and Fund Diversion
In addition to procurement violations, the Osun State Government accuses the former administration of laundering over ₦1.5 billion through the state’s chapter of the Association of Local Governments of Nigeria (ALGON) between January and October 2022.
The petition lists several key figures allegedly involved in the scheme, 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
Financial records cited in the petition reveal that large sums were consistently withdrawn from ALGON’s Zenith Bank account (Account Number: 1016607858) and funneled into the private account of Akeem Ibitoye, a local government employee and Director of Finance at Ejigbo Local Government. Withdrawals reportedly ranged from ₦10 million to ₦30 million per day, with no documented evidence of these funds being used for official projects.
Former Officials Deny Allegations
In response to the allegations, Adebayo Adeleke dismissed the claims, labeling them as baseless and politically motivated.
“I have not been invited by the EFCC, nor have I seen a copy of the petition. If there is no proof, then these allegations hold no ground,” he stated.
He further alleged that the current Osun State Government was attempting to tarnish his reputation due to his opposition to their governance.
“I have become a thorn in the flesh of Governor Adeleke and the ruling party. I won’t be surprised if they fabricate baseless accusations to silence me. But trying to stain my white garment won’t make me back down from exposing their fraudulent ways,” Adeleke added.
What’s Next?
With the EFCC now in receipt of the petition, Osun residents and political observers are keenly watching to see if an official investigation will be launched. If the allegations are substantiated, the case could have far-reaching implications for former officials linked to the alleged mismanagement of public funds.
As the controversy unfolds, many are calling for transparency and accountability in the handling of state funds, particularly when it comes to projects that directly impact public welfare. The coming weeks are likely to determine whether justice will be served or if this will be yet another political storm that fades without consequence.
