The lid has finally been blown off the scam surrounding the micro-credit scheme initiated by the ousted Peoples Democratic Party (PDP)-led administration in Ekiti State.

Caught in the web of default in repayment of the loans which runs into almost N2 billion naira included the PDP candidate in the 2007 election, Engr. Segun Oni, his running mate, Dr. Sikiru Tae Lawal, Senator Ayo Arise, ex-Minister Babalola Borishade, former commissioners, serving legislators and other prominent PDP chieftains. 

An audit report ordered by the deposed government revealed that revealed that as much as N1.765 billion is presently in the hands of top politicians who served as guarantors and the beneficiaries. 

The defaulting guarantors and the beneficiaries now have up till Wednesday to pay back the loans to the coffers of the state government through the Micro-Credit Agency to allow others benefit from the revolving loan scheme.

Produced by Abike Sonoiki & Co. (Chartered Accountants), the report entitled "Audit Report of Ekiti State Micro-Credit Agency for the Three Years Ended 31st December, 2009" exposed the mismanagement of the micro-credit scheme. The report brimmed with information on every mentor and beneficiary listed against such.

Oni, then governor, took N2.2million to disburse to 15 beneficiaries. Former Commissioner for Information, Taiwo Olatunbosun took N1.8million for 18. For both sums, there was no repayment. Senator Ayo Arise obtained N2.47 million for disbursement to 60 beneficiaries for which none paid anything back.

Yinka Akerele, a former Peoples Democratic Party (PDP) governorship aspirant got N1 million for the benefit of 10 people. Out of this amount, N65, 000 had been paid back.

Also listed are Oni’s running mate, Dr. Tae Lawal, (N25 million); deposed Senator Femi Kila (N10 million), Rt. Rev. S.O. Oke (N9.973million); Bisi Kolawole ( N7.89 million); Chief Elemure Ogunyemi, a local musician, ( N7.82 million); former Finance Commissioner, Tunji Adeniyi (N7.36 million); Femi Bamisile ( N6.89 million); Air Vice Marshal Ernest Adeleye ( N6.66 million); and Dr. Jide Josiah (N4.98 million).

Others are Sir. Remi Omotosho (N4.86 million), Senator I.O Akinyede (for N3.835 million); Engr Bisi Aje (N3.86 million) and Barrister B.I. Ogunsemi, the agency’s manager (N3.76 million).

Former deputy governor, Abiodun Aluko got N5.4million on behalf of 117 beneficiaries. The repayment stood at N1.84million. Professor Babalola

Borishade, former Aviation Minister, stood for 31 people, who got N1.8million and paid nothing back.

Other guarantors with defaulters include legislators, prominent members of the Segun Oni Campaign Organization (SOCO), traditional rulers, friends of the government and civil servants.

The case of Tunde Ojo, a member of the board of the Oodua Group of Companies, provides a window into the shoddiness that characterized the agency’s operation.

 Ojo had put down the name of one Dayo Adetunmbi as having guaranteed the sum of N1.6million for 32 people. When  contacted Adetunmbi  denied being a guarantor for anybody in the loan scheme. "I wish to state clearly that at no time was I a mentor to anyone," he said.

 Adetunmbi said Ojo discussed this matter with him and later sent his driver to him with forms regarding the loan scheme

"But when I read through, I immediately sent the driver back with a note to Ojo politely declining to fill and sign the forms sent and dissociating myself from the scheme. It is to my greatest shock and embarrassment to discover my name being peddled around as a mentor to some people.

“It is criminal for anyone to have used my name without my consent and therefore urge the government to investigate who collected money and get it back into her coffers," he said. Attempts to speak with Ojo proved abortive. Phone calls put through to him were rejected. The text message sent to him also went unreplied. 

Last July, Olatunbosun called on political office holders and civil servants, who acted as mentors and guaranteed loans for beneficiaries, to prevail on the beneficiaries to repay their outstanding debts. 

Olatunbosun said the government was determined to ensure the recovery of all outstanding loans in order to enable others to benefit from the scheme. He warned that, in accordance with the agreement they signed with government, mentors would be held responsible if beneficiaries defaulted.

 The threat proved to be an impotent one. The government, having its fans and functionaries as guarantors, seemed handicapped–even when it discovered through an audit it commissioned–to move. The government got the audit report on 4 February 2010 and did nothing until it was evicted by a court.

Among other things, the report concluded that loan recovery efforts of the agency were dismal.

 "The agency’s loan recovery effort if any was found to be very low during the period. At least 92% of loans disbursed are outstanding as contained on Page 10 of this report...) Mentors circularized for theinformation of their loan status did not respond except one mentor from Ijero Local Government," the report said.