The Osun State Government has firmly denied allegations by the Economic and Financial Crimes Commission (EFCC) that it looted N11 billion in ecological funds. The denial comes after the anti-graft agency froze the state government's account on Wednesday, August 5, citing fraudulent transfers of ecological and intervention funds into a private account.
In a statement released on Thursday, the state's Commissioner for Information and Public Enlightenment, Kolapo Alimi, dismissed the EFCC's claim as baseless, insisting that the state has committed no financial misconduct. The government further accused the EFCC of acting on the directive of former Governor Gboyega Oyetola to frustrate the payment of palliatives to state workers.
EFCC's Allegations and State's Response
The EFCC had announced on Wednesday that it froze the Osun State Government's account after discovering what it described as 'suspicious and fraudulent' transfers of the state's ecological and intervention funds into a private account. The agency said the move was to prevent further diversion of public funds.
However, the Osun State Government, through Commissioner Alimi, countered that the real motive behind the account freeze was to obstruct the payment of palliatives promised to workers months ago. The statement read: 'The real reason the commission froze the state account on the order of Gboyega Oyetola was to stop the payment of palliatives which the state government promised the workers some months ago.'
Political Motives Alleged
The state government's statement suggests a political vendetta, linking the EFCC's action to former Governor Oyetola, who lost the last governorship election to the current administration. The government believes that the freeze is a deliberate attempt to cripple its financial operations and renege on its promises to the workforce.
According to the state government, the EFCC's action is not based on any evidence of wrongdoing but is a calculated move to embarrass the current administration and disrupt its developmental agenda. The government has vowed to challenge the freeze legally and seek immediate unfreezing of its accounts to ensure the welfare of its workers and the smooth running of the state.
Impact on Workers and State Operations
The freezing of the state's account has raised concerns among civil servants, who fear that the payment of their salaries and other entitlements might be delayed. The state government had earlier pledged to clear outstanding salaries and pay palliatives to cushion the effects of the economic hardship on workers.
Commissioner Alimi reiterated that the government remains committed to fulfilling its obligations to the people of Osun State, despite the alleged sabotage. He called on the EFCC to conduct a thorough and unbiased investigation, stressing that the state has nothing to hide.
The development has also sparked reactions from various stakeholders, with many calling for a swift resolution to avoid a breakdown in the state's public service. The state government has assured that it will explore all legal avenues to ensure that justice is served and that the accounts are unfrozen promptly.
