March 19, 2024

CSO to Aregbesola: Stop deceiving Osun Citizens on Sukuk Company

……rejects Commercialization of education

A Civil Society Organization (CSO) in Osun State under the aegis of Civil Societies Coalition for the Emancipation of Osun State (CSCEOS) on Sunday, asked the State governor, Mr. Rauf Adesoji Aregbesola to stop deceiving the good people of the State over the controversy surrounding the recent claimed of the Model Schools built through the Sukuk Bond by Money lendersOsun SUKUK Company), describing Aregbesola as a serial and pathological liar on the governance of the State over the years.

The group however, alleged that Mr. Aregbesola has concluded arrangement to commercialize the education sector with the introduction of fees regime under the guise of developmental and
taxation levies in the State, thereby rejecting the commercialization of the education sector of the State and advised Aregbesola to tender resignation letter as he lacked capacities to govern the State again.

Speaking, through a Signed statement by the CSCEOS’ Chairman, Comrade Adeniyi, Alimi Sulaiman, maintained that the model schools built by the controversial loan from the Sukuk Bond was owned by the Sukuk Company until the proceeds of the loan was fully redeemed in line with the agreement of the State government, insisted that the Company has every right to take over the schools in question so as to generate their proceeds back to its cover, challenging Mr. Aregbesola to come out openly and tell the truth on the subject matter.

Comrade Sulaiman recalled that the State government under the watch of Aregbesola on the October, 2013 sought the loan of N11.4 billion from Sukuk Loan Company with the aim of using the loan to build 27 Model Schools in 23 High, Middle and Elementary Schools at the rate of
N450million, N150million and N160million respectively in the State.

He added that Mr. Aregbesola promised to build twenty-seven (27) model schools across the State with the free interest loan of N11.4billion from Sukuk Loan Company in 2013 which the State would be paying  back N25.52 billion in year 2020 and the Federal Government through the Universal Basic Education Commission (UBEC) released sum of N13.9billion to Aregbesola for the same purpose of constructing the school classrooms which the citizens of the State at home and abroad, have been asking about the where about of the N13.9billion of UBEC funds.

CSCEOS boss therefore declared that it was part of the agreement with the State government that SUKUK Loan Company should take over the model schools buildings whenever the State defaulted in payment of the net proceeds, adding that Aregbesola has shortchanged the good people of the State on the construction of the schools for his own benefit.

Quoting the review of Document on Osun Sukuk Loan, “Osun SUKUK is Ijarah(lease) which is the most common issuance type of project finance or acquisition of new assets. It is leasing structure with a right available to the lessee to purchase the asset at the end of the lease period(Similar to Finance) the rental rates in return on Ijarah SUKUK  can be fixed or floating. The Ijarah SUKUK provided an efficient medium to long-term mode of financing and it is tirade in the secondary market.
“Osun State Government incorporated a Company named Osun SUKUK Company with an authorized share capital of 1million divided into 1million ordinary shares of N1.00 each as a Special Purpose Vehicle (SPV) to act solely for the purpose of participating in the transaction and the issuance of the Bond is Osun SUKUK Company while Osun State is the originator”.

“A Sinking Fund shall be created for the purpose of payment of rental charges and the principal at maturity. It shall be funded from the Originator (Osun State Government) statutory allocation by way of an irrevocable standing order (ISPO) and shall be managed by the Trustees (Osun SUKUK Company).Additionally, Osun State Debt Management Office shall as appropriate, pay out of the Consolidated Debts Service Account of the State into the Sinking Fund any outstanding payment obligations due to the SUKUK holders. The Originator (Osun State
Government )therefore shall compulsorily pay into the fund monthly deduction of N164,934,256 from August 2013 to July 2014 and N305,678,787 from August 2014 to July 2020”,Sulaiman added.

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Nwaorgu Faustinus

Nwaorgu Faustinus is a citizen of Nigeria, Mass Communication graduate, freelance writer, columnist, blogger, who contributes articles, commentaries, interviews and news stories to media outfits. He worked as a trainee at NTA Yola, Adamawa State where he covered Seminars, workshops, news conferences as well as political rallies amongst others from 2000-2001. After his internship, he went back to school to complete his education at the first private poly technique - OSISATECH where he obtained HDN Certificate with upper credit in Mass Communication in 2005. He lives in Port Harcourt, the capital of Rivers State one of the oil producing States in Nigeria.