LP raises alarm over plot by Agagu to sell council assets

Olusegun Agagu

For the umpteenth time, the Ondo State chapter of the Labour Party (LP) has raised an alarm over plans by the Olusegun Agagu-led Peoples Democratic Party (PDP) government to mortgage the future of the State with huge borrowings from commercial banks as well as systematic sale of all prime assets bequeathed to the State by its founding fathers.

In a release issued by its Chairman, Dr Olaiya Oni, a former Secretary to Government and Head of Service in the old Ondo State as well as a one-time Education Minister in Akure on Wednesday, LP revealed that local governments chairmen in all the 18 councils in the state have started approaching commercials banks to borrow funds ranging from N200 million to N500 million to prosecute imaginary projects like that of  their boss, Dr Agagu who had in the last five years borrowed huge sums of money from banks under the guise of funding “imaginary monumental projects,” in the State.

According to the LP which had consistently been blowing the whistle on alleged shady deals being perfected by the Agagu government, arrangements have reached final stages by these council chairmen to dispose of capital assets of the local governments such as tractors, graders, bulldozers with the excuse that they are no longer serviceable.

Said Olaiya: “The Labour Party hereby warns all commercial banks that any one that lends money to local government frivolously, will have himself to blame because such obligation might turn sour very soon.

advertisement

“We are also warning all the entire Chief Executives of the local government as well as the technocrats on ground who know the due process in disposing off government assets to desist from collaborating with the Agagu boys at the local level to sell off valuable local government assets under whatever guises,” It would be recalled that LP had last year cried out over plans by the Agagu government to borrow N30 billion from the Stock Exchange market using a consortium of banks. Although Agagu had risen in defense of the loan which he said would be used to finance monumental projects, but due to its strident cries, which included a protest letter to President and other relevant agencies, LP was able to foil the loan. It had over the last 8 months uncovered the under the table sales of the State’s Shares in the Spring Bank Plc by Agagu even while the bank’s shares are still under technical suspension. And last month, it also blew the whistle on the sale of the State portion of the Oduduwa House which serves as the State’s Liaison Office in Victoria Island, Lagos which the government did not only confirmed but stated it was borne out of sound financial management.