$20M Fraud Scandal? Adeleke Drags Oyetola, Allies to EFCC in Explosive Corruption Allegation

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 accusations of misappropriating a $20 million World Bank Health grant. Naija News reports that the government has accused Oyetola of money laundering, financial misconduct, and violating the Public Procurement Act in the allocation of funds intended for health sector improvements within the state.

According to a copy of the petition dated March 7, 2025, which was obtained by journalists, Oyetola, during his time as governor, chaired a special Health Intervention Committee responsible for distributing the grant. This committee included officials such as Remi Omowaye, Dr. Rafiu Isamatu, and Bola Oyebamiji, and it allocated the entire $20 million for the renovation of 320 primary healthcare centers across the state.

The petition, drafted by the state government’s lawyer, Pelumi Olajengbesi, alleges, “This so-called renovation of primary healthcare centers involved construction, renovation, and adjustments to attain the standards of modern health facilities. After making these decisions, the Oyetola-led committee chose to award the contracts for the renovations.”

The document further claims that Oyetola breached the Public Procurement Act of 2007 by neglecting to initiate a bidding process and instead awarded contracts to individuals associated with his administration.

“The former governor, in violation of the Act, awarded contracts to individuals who were either his cabinet members, heads of various government agencies, or his proxies and cronies, who claimed to have incorporated business names or operated inactive companies,” the petition states.

The alleged recipients of the contracts included businesses unrelated to construction, such as food vendors, salon operators, supermarket owners, and web designers. The petition names several companies, including:

– Poshpreneurs Nig., allegedly owned by the children of former Head of Service, Olowogboyega Oyebade;
– Dotfam Multiventures Ltd, linked to the siblings of the former APC State Chairman;
– The Ice Firms Nig. Ltd, reportedly owned by former Commissioner for Local Government and Chieftaincy Affairs, Adebayo Adeleke;
– Afamoks Web International, connected to former Amotekun Field Commander, Amitolu Shittu.

The state government contends that these companies, despite lacking construction expertise, performed substandard renovation work while receiving full payments, leading to the misappropriation of the $20 million grant.

Additionally, the petition alleges that Oyetola’s administration channeled over ₦1.5 billion through the Osun chapter of the Association of Local Governments of Nigeria (ALGON) between January and October 2022. It identifies former ALGON Chairman Abiodun Idowu, Secretary Olubisi Oladosu, 28 former local government caretaker chairpersons, and former Commissioner for Local Government and Chieftaincy Affairs, Hon. Yekeen Adebayo Adeleke, as key participants in the alleged scheme.

“In a similar vein, the government has uncovered financial records indicating large-scale money laundering carried out by the previous administration of Alhaji Gboyega Oyetola,” the petition asserts.

Cited financial documents reportedly reveal that funds were frequently transferred from the ALGON account at Zenith Bank into the private account of Akeem Ibitoye, a local government employee and Director of Finance at Ejigbo Local Government. The allegations include cash withdrawals ranging from ₦30 million to over ₦10 million per day, with no documentation explaining the use of these funds for any official projects.

In response, former Commissioner for Local Government and Chieftaincy Affairs, Adebayo Adeleke, dismissed the allegations as unfounded. “The EFCC has not invited me, and I have not seen a copy of the petition to understand what it is about. If there is no proof, then the allegations are frivolous and without merit,” he told Newsmen un.

He further accused the Osun State Government of political witch-hunting, stating, “I have become a thorn in the flesh of Gov. Adeleke and the PDP, and I wouldn’t be surprised if baseless allegations are made against me. Anyway, they think trying to tarnish my reputation will silence me regarding their fraudulent governance.”