“In the month ended February 2022, Osun State Government received a negative allocation of -375million from the FAAC, out of a possible 1.45billion. The implication of this is that the State will be paying back an extra sum of 375million from next month’s allocations, plus the deductions already waiting in that month.
“While we understand that increasing figures of fuel subsidy has beaten down monthly allocations to various arms of government, the more worrisome implications of this to Osun State is the fact that as the Federation’s finances worsen, Osun will become more incapable of meeting its debt obligations, let alone have any money left to run the State.
“There is an even more disturbing possibility. Now that we have the sum of 375million to repay from March allocation, as to make up for the shortage in the deduction for February, it is clear that shortages in deduction of this nature may continue to accumulate if the Federation’s finances do not improve. This means that monthly, Osun will continue to get allocation deficits that are higher in figure than the last. The worst, therefore, may not yet be seen.
“If the State proceeds in this manner, it will steadily progress into insolvency and eventually, total bankruptcy. This is not a point we hope to be in.
“The State Government needs to as a matter of urgency conduct a financial sustainability exercise that will look into the core areas of finances of the State, the capacity it has for survival and the steps it needs to take to correct past errors. Such exercise may necessarily include a probe of the past administration’s financial actions, with a view to issuing necessary white papers where necessary, to reprimand persons found guilty of poor actions.”
However, PMF, in a press release by its Coordinator, Sunday Oriowo, on Tuesday, alleged that the Osun Masterminds were sponsored by some group in the government who had earlier planned to sponsor some pensioners to stage a protest when the minister was in the state on Monday to commission the 72-unit housing on behalf of President Muhammadu Buhari.
“The first malicious action sponsored by the government against the minister was the mobilization of some people who were to disguise as pensioners in the state to protest against the minister during the commissioning of the 72-unit Federal Mortgage Housing Estate in Abere.
“Having failed in the first plan, the government activated its second plan by engaging ‘The Masterminds’, a group known for its hypocrisy, money-driven opinion and financially induced press conferences, to launch attack on the Minister, in a desperate bid to discredit his official assignment in Osogbo.
“Besides, it is pathetic that a supposed objective group would close its eye to the nondisclosure of N11.9bn refund to the Osun State government on federal government project executed by Aregbesola, but rather continue to blame the former governor for the debt,” PMF added.
VANGUARD