The Osun State Government has petitioned the Economic and Financial Crimes Commission to investigate the former governor and current Minister of Blue Economy, Gboyega Oyetola, over the alleged mismanagement of a $20 million World Bank health grant.
The government accused Oyetola of money laundering, financial misconduct, and breaking the Public Procurement Act while disbursing the grant meant for improving the state’s health sector.
According to a copy of the petition dated March 7, 2025, Oyetola chaired a special Health Intervention Committee during his time as governor.
The committee, which included former government officials like Remi Omowaye, Dr. Rafiu Isamatu, and Bola Oyebamiji, decided to use the entire $20 million for renovating 320 primary health care centres across Osun State.
The petition, written by the government’s lawyer, Pelumi Olajengbesi, stated, “This so-called renovation involved building, restructuring, and adjustments to some of these centres to make them modern. However, the Oyetola-led committee awarded contracts without following the bidding process required by the Public Procurement Act.”
Olajengbesi added that instead of allowing open competition to select qualified contractors, the contracts were allegedly awarded to Oyetola’s associates and government officials, including food vendors, salon operators, supermarket owners, and web designers with no construction experience.
Companies named in the petition included 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 the Commissioner for Local Government and Chieftaincy Affairs, Adebayo Adeleke; and Afamoks Web International, linked to former Amotekun Field Commander, Amitolu Shittu.
The state government claimed that these companies carried out substandard renovation works while receiving full contract payments, leading to the mismanagement of the $20 million grant.
In addition to the health grant issue, the state government accused Oyetola’s administration of laundering over N1.5 billion through the Osun chapter of the Association of Local Governments of Nigeria between January and October 2022.
The petition 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.
Financial records in the petition reportedly showed that funds were 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.
Withdrawals ranging from N10 million to N30 million per day were allegedly made in cash without records of the money being used for official projects.
Responding to the allegations, former Commissioner Adebayo Adeleke dismissed the claims, calling them baseless.
“EFCC has not invited me, and I have not seen a copy of the petition. If there is no proof, then the allegations are frivolous,” he said.
“I have become a thorn in the flesh of Governor Adeleke and the PDP, so I won’t be surprised if they make false claims against me. They think dirtying my name will silence me about their corrupt ways.”
