I inherited a bankrupt state, says Osun Governor Aregbesola.

Culled from The Nation

OSUN State Governor Rauf Aregbesola yesterday took a break from his usual official routine. 
He appeared before the Prof. Femi Odekunle-led panel of inquiry set up by the government to investigate the circumstances surrounding the procurement of an N18.38 billion loan by his predecessor, Prince Olagunsoye Oyinlola.
The six-member panel has a mandate to look into other major financial transactions by the government between May 29, 2003 and November 27, 2010
Oyinlola, the National Secretary of the Peoples Democratic Party (PDP), gave his evidence before the governor appeared at the panel. 
Aregbesola said the idea behind the loan was not bad but its timing and application were wrong.
He also said the facility would have been unnecessary if the excess crude oil accruing to the State of the Living Spring had been judiciously applied.
The loan was obtained in the twilight of the Oyinlola administration to finance the establishment of six stadia and other projects 
Aregbesola, whose administration inherited the N18.38 billion loan from the United Bank for Africa (UBA) Plc., explained why he renegotiated the facility with First Bank of Nigeria Plc.
He said his predecessor bequeathed unto him a government that was technically insolvent. 
Stressing that there was nothing strange in a government taking credit facility from financial institutions, Aregbesola said the way and manner the former governor drew down the loan in one fell swoop was questionable.
Equally disturbing, he noted, was the fact that the funds were lodged in an account with the same bank without accruing any interest for the state. 
Aregbesola queried the rationale behind the simultaneous payment of N615 million interests and charges on a loan which was obtained at the 11th hour of the administration.