Group queries South West governors over spending of N15b subsidy fund

A Yoruba political pressure group, the South West Defenders has queried governors in the zone over the use of the over N15 billion already received from the Subsidy Fund.
The SWD said: “Our people deserve to know what the governors have done with the fund because we are aware of what the Federal Government is doing with its own share of the Subsidy Fund.”
In a statement issued by the National Publicity Secretary of the SWD, Lere Olayinka, the group accused the governors of squandering the fund.
It said: “The Osun State Governor, Mr. Rauf Aregbesola, has already borrowed N2.5 billion and another $1.5 million from Sterling Bank with agreement to pay back with the Subsidy Fund.
“Today, we are aware that the Federal Government, through the Subsidy Reinvestment and Empowerment Programme, has recruited no fewer than 25,000 youths in the six South-West States under the Community Services, Youths and Women Employment Scheme. Beneficiaries of this scheme are being paid N10,000 stipend per month.
“We are also aware of the SURE-P Graduate Internship Scheme, under which beneficiaries are being paid N18,000 per month.
“Above all, we are aware that the construction of some federal roads are now being funded with the Subsidy Fund and we wish to ask our governors in the South-West States; what they have done with the over N15 billion they have received so far?
“Who are the beneficiaries of the States’ share of the Subsidy Fund, because the fund is shared among the Federal Government, States and Local Councils?
“More appalling is the information available to us that Governor Aregbesola of Osun State has borrowed N5 billion (N2.5bn and $1.5m) at unprecedented 18 percent interest to finish repayment in 2016, two years after his tenure.
“Payment of this loan is to be made from the Subsidy Fund accruing to Osun State, and the implication of this is that; in 2013, Aregbesola is already spending funds to be received by Osun State from the Subsidy Fund in 2016!
“Even though bank sources as saying there were concerns over the loan agreement because it was signed with “State of Osun” which has been declared illegal and non existence by a Lagos High Court, the loan is already being serviced with the Osun State share of the Subsidy Fund.
“It is therefore our demand that our governors in the South West States should tell the people what they have done with the over N15 billion already received from the Subsidy Fund and what they intend to do with subsequent ones.”