- Safiu Kehinde
The Osun State Government has petitioned the Economic and Financial Crimes Commission (EFCC), accusing former governor and current Minister of Blue Economy, Gboyega Oyetola, of misappropriation of a $20 million World Bank health grant.
Oyetola was also accused of money laundering, financial misconduct and violations of the Public Procurement Act in the disbursement of the grant meant for health sector improvements in the state.
As contained in the petition dated March 7, 2025 and written by the state government’s lawyer, Pelumi Olajengbesi, Oyetola, during his tenure as governor, chaired a special Health Intervention Committee tasked with allocating and applying the grant funds.
The committee, whose members included former government officials such as Remi Omowaye, Dr. Rafiu Isamatu, and Bola Oyebamiji, decided to use the entire $20 million for renovating 320 primary health care centres across the state.
However, Oyetola allegedly awarded the contract to members of his cabinet,
violating of the provisions of the Public Procurement Act, 2007.
“This so-called renovation of primary health care centres involved building, renovation and adjustments/restructuring of some of these centres in order to attain the position of modern health centres.
“Having made these decisions, the Oyetola-led committee decided to award the contracts for the renovation.
“In flagrant violations of the above clear provisions of the Public Procurement Act, 2007, Oyetola did not call for bidding as mandatorilyrequired under the PPA, let alone allowing competition which would have afforded the state the best qualified contractors to handle the projects.
“Rather, the former governor in observing the provisions of the Act in breach, awarded the contracts to individuals who were either his cabinet members, head of one agency of government or the other, his proxies and cronies who claimed to have incorporated business names/inactive companies.” the petition read.
Osun state government further alleged that the beneficiaries of the contract included businesses with no construction experience, such as food vendors, salon operators, supermarket owners, and web designers.
According to report, some of the companies named in the petition include Poshpreneurs Nig., owned by the children of the former Head of Service, Olowogboyega Oyebade; Dotfam Multiventures Ltd, linked to the siblings of the former APC State Chairman; The Ice Firms Nig. Ltd, allegedly owned by Commissioner for Local Government and Chieftaincy Affairs, Adebayo Adeleke; and Afamoks Web International, linked to former Amotekun Field Commander, Amitolu Shittu.
These companies, according to the state government, lacked the expertise for construction
They allegedly executed substandard renovation works while receiving full contract payments, thereby leading to the misappropriation of the $20n grant.
In the same vein, Oyetola was also accused of money laundering to the sum of N1.5 billion which the state government alleged to be funneled through the Osun chapter of the Association of Local Governments of Nigeria between January and October 2022.
The petition reportedly named former ALGON Chairman, Abiodun Idowu, Secretary, Olubisi Oladosu; 28 former local government caretaker chairmen; and the former Commissioner for Local Government and Chieftaincy Affairs, Hon. Yekeen Adebayo Adeleke, as key actors in the alleged scheme.
“In a similar vein, the government equally laid its hands on some financial records which clearly show a clear case of money laundering of huge magnitude by the past administration of Alhaji Gboyega Oyetola.” The petition read further.
Financial records cited in the petition indicate that funds “were repeatedly transferred from the ALGON account at Zenith Bank (Account Number: 1016607858) into the private account of one Akeem Ibitoye, a local government employee and Director of Finance at Ejigbo Local Government.”