$106m loan: Adeleke suspends Consultant of Ilesa Water Project, orders probe of loan disbursement
By Ismail Azeez, Osogbo
Osun State Governor, Senator Ademola Adeleke on Wednesday ordered the immediate suspension of the Ilesa Water Project in Osun East Senatorial District over questionable handling of a $106million loan secured for the project which, was said have been handled by a consultant, Mrs Tawa Williams.
The Governor further ordered full scale probe of the entire project and disbursed loans, directing the Consultant to return a N70million bullet proof Jeep to the government.
Adeleke, in a statement by his Spokesperson, Mallam Olawale Rasheed, said there is no progress on the project despite reported disbursement of N10 billion and another $28million on the project.
The Governor said that the suspension of the project co-ordinator was to allow for unhindered review of the loan administration.
It was gathered that a directive was sequel to the interim report of the State’s Assets Recovery Committee chaired by Dr B.T. Salami which made recommendations for immediate action to stop further squandering of loans secured to execute the Water Project.
Adeleke frowned at large scale corruption reflected in the handling of the loans and the project, an action he regretted has denied people of Ilesa and environs of drinkable water.
“My administration will dig into this matter with all seriousness. The huge fund in question are loans to be repaid. We have a sacred duty to ensure accountability and transparency in the handling of the fund and the project,” Senator Adeleke said.
The Assets Recovery Committee had submitted an interim report which revealed an ongoing large scale pilfering of the procured loans while the project recorded no progress commensurating with reported expenditure.
According to the interim report of the Salami led committee, the Islamic Development Bank agreed to fund the project to the tune of $65 million while the Federal Government provided $41.94 million.
“So far, a total of $27.073 million has been expended from the IDB loan of $65 million, leaving a balance of the sum of $37.926 million. However, from the Federal Government loan of $41.94 million which the Consultant had converted to N12 billion, the sum of N10 billion had been purportedly spent on the project, leaving a balance of N2 billion,” the report posited.
The Committee noted that despite the huge sums of $27.073 million and N10 billion of the state resources (repayable loans) already spent so far, the Ilesa Water Project is not yet functional and the good people of Ilesa are yet to access any water.
