The Peoples Democratic Party, Osun State Chapter has requested the Governor of the state to defend his signing off of public school buildings to the ‘Islamic money lenders.’
In a statement issued by the Osun State PDP Spokesman, Prince Diran Odeyemi, the party expressed its shock at reading a direct claim over school buildings in the state. The claims according to the party were made by shadowy holders of an N11.4 billion Islamic bond taken a few years ago by the Aregbesola administration.
“We read the advertorial on Wednesday 30 March, 2016 bearing the logo and name of Osun Sukuk Company Plc. We note that the rating agency said it had down-graded the state’s rating because of the parlous state of its economy just as they made open their decision to seize and sell school buildings should the state fail to pay back the bond sum of N11.4 billion at 17.5 % fixed return.
“Specifically, we note in paragraph two of the advertorial that ‘“The Sukuk holders will have ownership of the school buildings acquired with the Sukuk proceeds until the issue is fully redeemed; therefore, the Sukuk holders will have recourse to the property in the unlikely event of default. ..’”
“Having seen the above and the disclosure that billions of Osun state money are monthly going into a “ sinking fund” to repay the loan, we hasten to ask Mr Aregbesola to disclose the whole truth about this deal and others that are hidden.
“We will want to know too how money lenders under whatever guise are taking over assets of the people of Osun state and the benefits the state has derived from the so called Islamic bond” he added.
In reply to the challenge, the State Government said the opposition party, PDP, has displayed crass ignorance of financial matters.
In a statement by the Director, Bureau of communication, Mr Semiu Okanlawon in reply to the allegation, the State Government said the allegation did not come as a surprise as “this ill-informed statement from the PDP taking a shameless cue from their equally Ill-informed online commentators.
“The advert in question is self explanatory and if mischief is not the sole aim of this statement the PDP and its cohorts would have taken cognizance of the opening part of the advert which shows ‘satisfactory quality debt issue with moderate credit risk adequate capacity to pay returns and principal on local currency debt in a timely manner’.”
“The insinuation that Osun school would be taken over by “money lenders” is laughable in the sense that Sukuk is under the Osun Sukuk PLC, which is a company established by the Government of Osun. How then can an Osun company take over the schools built with proceeds of the bond?
“The advert in question shows how our rating is stable with explanation that though there is dwindling oil prices but Osun is stable at B rating.
“The schools are owned by Osun Sukuk plc, which is owned by Osun govt. How can a publication of the rating of govt and its SPV become an issue to misinform the people and cause anxieties?
“We should be proud of this credit rating. Nigeria was downgraded from BB so also all the states as a result of dwindling price of oil. Osun published these ratings out of its own volition and for transparency. Should there be anything threatening our assets would this be something to celebrate?
“We heartily congratulate the PDP for once again demonstrating its total ignorance.
“And Governor Aregbesola is also being accused of “introducing Sukuk to the average Osun citizens who did not know about Sukuk before”. Does that not further confirm that Aregbesola thinks out of the box in the efforts to bail Osun out of the shackles of poverty by seeking to bring home and to his people what is now the most embraced public infrastructure financing strategy across the world?”
‘’That a company is taking over Osun Schools is just laughable. There is no other way to say it.’’
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