A group of Civil Society Organizations (CSOs) in Osun State under the aegis of Civil Societies Coalition for the Emancipation of Osun State (CSCEOS), on Sunday, has asked the State Governor, Mr. Rauf Adesoji Aregbesola to stop deceiving the good people of the state as regard the controversy surrounding the recent claim of building Model Schools through the Sukuk Bond by Money Lenders Osun SUKUK Company.

The group further described Aregbesola as a serial and pathological liar concerning the governance of the State over the years.

It, also, alleged that Mr. Aregbesola has concluded arrangement to commercialise the education sector with the introduction of fees regime under the guise of developmental and

taxation levies in the state.

The group stated that it rejects the commercialisation of the education sector of the state and advised Aregbesola to tender resignation letter as he lacked capacities to govern the state again.

The group in a statement signed by its chairman, Comrade Adeniyi Alimi 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 N450 million, N150 million and N160 million respectively in the state.

He added that Mr. Aregbesola promised to build 27 model schools across the state with the free interest loan of N11.4 billion 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 N13.9 billion of UBEC funds.

Sulaiman 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.”

•Photo shows Governor Aregbesola.

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