The Osun State Government has formally petitioned the Economic and Financial Crimes Commission (EFCC) to investigate former governor and current Minister of Blue Economy, Gboyega Oyetola, over claims of misappropriation of a $20 million World Bank health grant.
The petition, filed on March 7, 2025, accuses Oyetola of financial misconduct, money laundering, and violations of the Public Procurement Act (PPA) during his tenure as governor.
According to the petition, the funds were intended to improve the state’s health sector, but they were allegedly diverted and misused.
The Osun government claims that Oyetola, as the chair of a special Health Intervention Committee, oversaw the allocation and disbursement of the grant intended for the renovation of 320 primary health care centres across the state.
The government’s lawyer, Pelumi Olajengbesi, alleges that Oyetola’s committee, which included figures such as Remi Omowaye, Dr. Rafiu Isamatu, and Bola Oyebamiji, opted to use the entire grant on renovations.
However, instead of following due process, the petition claims that the committee violated the PPA by failing to invite bids for the projects, thus sidestepping competitive tendering.
The government further argues that Oyetola awarded the contracts to close associates, cabinet members, and business partners with no prior experience in construction, leading to substandard work and misappropriation of funds.
Among the companies named in the petition are Poshpreneurs Nig., reportedly owned by the children of the former Head of Service, Olowogboyega Oyebade, and Dotfam Multiventures Ltd., connected to the siblings of the former APC State Chairman.
Other firms linked to the scandal include 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.
The petition claims that these businesses, which had no expertise in construction, received full payments for the alleged substandard renovation works.
The result, the Osun government contends, was the misappropriation of the $20 million grant, intended for improving health care facilities in the state.
In addition to the renovation allegations, the state government has raised concerns of money laundering, claiming that over ₦1.5 billion was funneled through the Osun chapter of the Association of Local Governments of Nigeria (ALGON) between January and October 2022.
The petition alleges that financial transactions from ALGON’s account at Zenith Bank were made to a private account linked to Akeem Ibitoye, a local government employee.
According to the petition, these transfers involved daily withdrawals ranging from ₦30 million to over ₦10 million, with no clear evidence that the funds were used for any official purpose.
Former Commissioner for Local Government and Chieftaincy Affairs, Adebayo Adeleke, a key figure named in the petition, has denied the allegations.
He dismissed them as “frivolous” and accused the current administration of seeking to tarnish his reputation.
Adeleke, who is known to be an outspoken critic of Governor Ademola Adeleke’s administration, also expressed scepticism regarding the petition, stating that he had not been formally invited by the EFCC to answer the charges.
“If there is no proof, then the allegations are frivolous and of no stance,” he stated, adding, “I have become a thorn in the flesh of Gov. Adeleke and the PDP. I won’t be surprised if baseless allegations are levied against me.”
The petition has placed pressure on the EFCC to investigate the alleged fraud, which has further escalated political tensions within the state.
The outcome of the investigation is keenly awaited by both the government and the opposition, as well as the people of Osun State, who are concerned about the fate of their healthcare infrastructure and the integrity of their public officials.
As the EFCC prepares to examine the case, political observers are closely watching the development, which could have wide-reaching implications for Oyetola’s political future and the administration of Governor Ademola Adeleke.
READ ALSO: Adeleke meets Akande amidst ongoing LG dispute in Osun state
