Islamic money lenders have taken over Osun schools – PDP

– The PDP says money lenders have taken over ownership of public schools in Osun state

– The party alleged that transfer was made few years after ago on the governor’s directive

– The state government has described the allegation as ill-informed

Osun state governor, Rauf Aregbesola

The Peoples Democratic Party (PDP) in Osun state has raised alarm over alleged transfer of public school buildings to “shadowy holders of N11.4 billion Islamic bond” by governor Rauf Aregbesola.

Prince Diran Odeyemi, the PDP state spokesman noted that the lenders had taken over school buildings in the state few years ago on the governor’s directive.

The party has demanded explanation to the illegal transfer to Osun Sukuk Company Plc and its benefits to the people.

The statement reads in parts: “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 per cent 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.

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“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,” Odeyemi concluded.

Reacting to the statement, Semiu Okanlawon, the director, bureau of communication to the state government, described the allegation as baseless and ill-informed.

He said: “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?

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“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,” he said.

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