OPIC: Ogun Lawmakers To Grill Amosun's Aide, Odusolu, Again Over 25 Audit Infractions - THE DAILY CRUCIBLE



Sunday, November 8, 2020

OPIC: Ogun Lawmakers To Grill Amosun's Aide, Odusolu, Again Over 25 Audit Infractions

...  State Lawmakers Are Seeking Valid Answers To Alleged Unaccounted Balance Of N4,458,975,965,21Others

                                • Odusolu

From Ayobami Ife, Abeokuta

The immediate past Managing Director of the Ogun State Property and Investment Corporation, Jide Odusolu has again been summoned to appear before the Ogun State House of Assembly Committee on Public Accounts and Anti-corruption for further grilling over alleged 25 infractions preffered against him by the audit reports on his tenure of office.

Odusolu who was appointed MD of the Corporation by the then administration of Governor Ibikunle Amosun, is expected to appear before the Public Accounts and Anti - corruption Committee  for further questioning and explanations tomorrow (Monday).

 Speaker Olakunle Oluomo, who disclosed this on Sunday through the Ogun Assembly media office, said the former Managing Director needed to come along with all necessary documents relating to all transactions on investments, housing projects and other fixed assets.

The Daily Crucible  recalls that the lawmakers had on Tuesday, October 13, questioned Odusolu for about six hours, and while the grilling lasted, the lawmakers expressed displeasure on the manner he ran the Corporation, citing the alleged 25 infractions as outlined in the audited accounts of the Corporation between 2015 and 2019 as an example.

The Chairman of the Committee, Hon.Musefiu Lamidi, noted  the Corporation merged the cost of lands and buildings which contravened the provisions of the accounting standard.

Also, the Lamidi - led Committee is seeking convincing explanations why the five Star Hotel, Ikeja under the purview of OPIC did not have any physical existence but only on paper even as the sum of N45, 025, 064.00 was spent to obtain title documents on the landed property while the premium of non-current assets for 2015- 2016 were not paid as and when due.

The Committee further noted that the Corporation under Odusolu's watch was just updating its fixed assests register as at the period of the audit exercise, while the "depreciation policy of 20% on computer equipment did not reflect the volatility on computer technology."

It reckoned that this might have led to the understatement of depreciation amount in the financial statements, just as the Committee classified some housing projects meant for sales like "Orange Valley, MTR, OPIC Estate and others as Stock in Trade.”

The Committee also disclosed that the rental income of OPIC Plaza, Ikeja was not made available for examination during the 2016 audit exercise, with no traceable records of interactions between the Agbara Estate and the billing section of the Corporation on the reconciliation of rent income generated.   

The Committee frowned at the operations of twenty-one bank accounts by the organization, out of which nine were inactive, prompting the lawmakers to seek explanations on the basis for the agency in the period under review to have kept  27 accounts with only 11 banks amounting to N117, 792,132.99 active, while the remaining 16 accounts amounting to N608,226,371.69 were embargoed.

Also, the Committee observed that the audit report revealed that for 2019 after generating an income (including subventions and grants) of N3, 817, 778, 776.65 and expending a total of N1,197,182,579.27, the balance is N2,620,596,187.38, adding that the expected bank balance as year-end 2018 of N2, 564, 398, 282.51 brought the expected balance to N5,184,994,469.89 available to the agency.

In view of the above, considering the 2019 bank balance sheets submitted to the lawmakers as N726, 018,504.68 which represents an unaccounted balance of N4,458,975,965.21  needed to be accounted for.

The lawmakers pointed out that funds expended on MITROS Residences, Abeokuta were not appropriated for in line with best budgeting practices by the State, hence the need to avail the committee with documents in support of all cost lines and revenue on the properties between January 2015 and February, 2020.

Responding, Odusolu, who outlined some of the housing projects carried out by the Corporation under his purview, lauded the lawmakers for the opportunity to clarify issues during the period under review.

The former M.D. posited that the Corporation needed to be run like an independent business enterprises, which should be devoid of the public service scrutiny, rules and processes;  the position which was countered  by the lawmakers as it runs contrary to the extant laws that any State owned investment or organisation should always be subjected to public scrutiny in line with the constitution.

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