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Open Letter To DG DMO Osun, Mr Tunde Adejumo By Dr Wale Bolorunduro



Dr Wale Bolorunduro , former Commissioner of finance in Osun State

Be Professional
My attention has been drawn to the response from your good self, Tunde Adejumo, DG DMO to an extract on my memoir, privately posted on my Facebook wall, and I wish to state as follows:
1. I am happy your response didn’t debunk the fact that the two deductions on the state capital market (#30billion bond and #11.4billion Sukuk) programs have finished (i.e. the monthly repayments have “zeroed out” in August 2019 and April, 2020 for the Bond and sukuk respectfully), while the trustees will be completing settlement of investment by October, 2020 for the Sukuk. The two deductions on these bond and sukuk totaling about 925.67million monthly are no more part of the deductions again because their monthly repayments have been fully paid down by Governor Gboyega Oyetola and I am happy the statement by me was not a misstatement or misconception and you never claimed so too. The underlying assets and infrastructures of the two bonds (conventional and Sukuk) are being used by the government of Osun
2. However, I couldn’t reconcile how 385.3 million naira could be 20 percent of monthly loan servicing as at 27th November, 2018 because the above total deduction figure in (1) above was still part of the deductions as at then. The DG DMO that I recruited and left behind knows the importance of date or period in accounting and I am happy I recruited you because you presented requisite educational and professional qualification. So I expect you to remain professional. It is your statement that can create misconception now; if item in 1 above is added to your 100 percent, you know what it means? A misconception of the highest order. You know why you still refused to mention absolute figure of the total deductions as at 27th November 2018 or whichever date you chosed in your imagination and since not even the devil knows the intent of a man, you know what the deductions would be as at 27th November 2018 by your fussy mathematics,
3. I have mentioned three deductions in my memoir, which our amiable Governor Gboyega Oyetola inherited as at 27th November 2018 and which he had been managing courageously since he also inherited the infrastructures (asset class) and you consented silently that two of the deductions are no longer there again; I missed out on one, which is the deduction on the FGN restructured bond repayment, which you think you can turn to a smoking gun. For whatever reason too, you were silent or missing out on the amount of monthly deduction associated with this FGN restructured Bond. This singular miss on my own part is regrettable. I am sure I would have, as usual, sounded it out with you in one of our various telephone interactions, particularly during our recent telephone conversation two (2) days before my posting of this issue, but you know I wouldn’t make such assumption without a sound basis; please check this link The law requires you to publish the amounts of deductions as at 27th November 2018 and as at the date of your publication for public consumption. There are tonnes of information out there that are outrageous figures and you need to clear the air for your own good,
4. I don’t know if I can give you a peep into a chapter of my book on Fiscal Federalism, the structure of the FGN Restructuring bond should be to allow for forbearance in an adverse situation like Covid and you must now work hard to get the FGN to do the needful to relief our cashflow as a professional in charge of our state debt management and as required by the DMO law setting up your office. I am available as a private citizen of the state to support your efforts along this line. I am available to give you the historical background on this, if you have forgotten. Please note that if you don’t challenge yourself to do it nobody will do it. You will be proud of yourself once you get forberance on this FGN restructured bond to free more cash for the government you serve,
5. Please note that the posting of extract from my pubook on my Facebook wall is to welcome criticisms and questions on my actions while in the office, I am compelled to do so without intending misconceptions or restraints, before the final publication of my book.
6. I am happy you mentioned the amount of the commercial loan that was restructured by the FGN restructured bond but you failed deliberately to mention the deduction amount associated with this and to list the underlined infrastructures and you drive daily on some of the roads. I have the detailed breakdown of the expenditures; the infrastructures portions and the portion used to fund salaries due to revenue shortfalls, while the state was in the midst of infrastructure development of the state. I have also included leverage recapitalization of our subsidiaries in our attempts to create assets for our dear state. I hope you can recollect that those subsidiaries and implementing MDAs were not under the finance team then.
7. I am surprised you used the word “windfall” I really don’t know why you have to dissemble on this because I didn’t use this word and nothing can be insinuated like this, from the extract of my memoir, suggesting the reprieve on the cashflow as windfall?. How can it be windfall, when the revenue had dropped. Please note that I don’t take libel easily and I may have to seek recourse in court of law concerning some of your words.
8. I am happy you should know the implication of managing an entity that is insolvent or purported to be insolvent, you will require IFC to do due dilligence on it before you can attract funding, even if you have to post private instruments to raise funds. You know any funding you attract now is not funding for me or past government. Your politics should not jeopardize the future of a state with 4million population.
9. You should know, no government can function without borrowing in any form ranging from lease, contract financing or financial derivatives used by the last administration and that’s is the reason, loan is treated as Capital receipt in the revenue and the fact that your office is still existing means debt financing is still recognized by Osun government and is not totally foreclosed in its funding; I assume you are in the loop to know. I will advise you remain a professional.

Walé Bolorunduro, PhD
Former Commissioner of Finance, Osun