Osun rejects N13bn payroll fraud claim, accuses consultant of inflating figures
The controversy deepened on Friday as Osun rejects N13bn payroll fraud claim, accuses consultant of inflating figures, setting the stage for a high-stakes dispute between the state government and an auditing firm it hired to review its payroll system.
The Osun State Government firmly denied allegations that it ignored a report exposing a N13 billion payroll fraud. Instead, officials accused the consulting firm, Sally Tibbot Limited, of exaggerating findings in order to claim an outsized commission.
In a statement issued in Osogbo, the Commissioner for Information and Public Enlightenment, Kolapo Alimi, said the administration discovered major inconsistencies after scrutinising the consultant’s report.
According to him, many of the individuals labelled as “ghost workers” were verified as legitimate employees and pensioners with complete documentation.
Allegations and counter-allegations
The dispute became public after the Chief Executive Officer of Sally Tibbot Limited, Sa’adat Bakrin-Ottun, alleged during a televised interview that the government refused to implement the audit because it uncovered large-scale payroll fraud under the administration of Governor Ademola Adeleke.
However, as Osun rejects N13bn payroll fraud claim, accuses consultant of inflating figures, state officials argue that the figures cited by the firm were deeply flawed.
Alimi stated that while the government initially welcomed a thorough audit, verification exercises later revealed that more than two-thirds of those declared “ghost workers” were bona fide staff members.
“The governor would be pleased if 15,000 ghost workers were truly identified,” Alimi said, adding that this was why the administration insisted on validating the report before implementation.
The numbers under scrutiny
According to the government’s breakdown, the consultant declared 8,448 workers as “unseen.” However, a review committee reportedly confirmed that 8,015 of them were active employees, leaving only 433 unreachable.
Similarly, of the 6,713 retirees listed as ghost pensioners, 5,830 were verified as legitimate beneficiaries, while 883 could not be reached.
As Osun rejects N13bn payroll fraud claim, accuses consultant of inflating figures, officials contend that the drastic reduction in the number of unverifiable names significantly altered the financial implications of the audit.
Under the terms of engagement, the consultant was reportedly entitled to a percentage-based commission tied to the number of ghost workers uncovered.
The government alleged that the initial 15,000 figure would have resulted in a commission of about N2 billion. However, once the verified numbers dropped below 1,000, the payment was recalculated to approximately N47 million.
State authorities described the discrepancy as evidence of inflated reporting.
Role of oversight and external agencies
In a surprising twist, the government welcomed calls for anti-corruption agencies to step into the matter. Alimi said the administration had nothing to hide and invited the Economic and Financial Crimes Commission and the Independent Corrupt Practices Commission to independently review the audit findings.
He emphasised that the payroll audit in question covered the period between 2018 and November 2023, spanning administrations.
The statement also addressed claims involving the governor’s elder brother, businessman Deji Adeleke. According to the commissioner, Deji’s involvement was limited to raising concerns that genuine civil servants might be unjustly dismissed.
The government said that in a bid to validate the report, the consultant was invited to present her findings directly, but inconsistencies in the data raised further questions.
Software concerns and policy shifts
Another factor cited in the fallout was the proposed replacement of the existing payroll software. Officials claimed the new system recommended by the consultant had not been previously tested, prompting caution within the administration.
As Osun rejects N13bn payroll fraud claim, accuses consultant of inflating figures, the state announced it has since adopted a homegrown payroll reform strategy.
The government argued that technological reforms must prioritise stability and reliability, especially in systems affecting thousands of workers and retirees.
Silence from the consultant
Efforts to obtain fresh reactions from the CEO of Sally Tibbot Limited were unsuccessful at the time of filing this report. Calls to her known contact lines reportedly did not connect, and messages sent via previously active communication channels were not answered.
The ongoing dispute has intensified public interest in payroll transparency and fiscal accountability in the state.
Political and administrative implications
Payroll audits often serve as a litmus test for governance credibility. Ghost worker scandals have historically plagued several states, leading to billions in losses.
However, as Osun rejects N13bn payroll fraud claim, accuses consultant of inflating figures, the spotlight now shifts to evidence, methodology and due process.
Observers note that the outcome could influence future engagements between governments and private auditing firms. It also raises broader questions about performance-based consultancy contracts and oversight mechanisms.
For now, the administration maintains that it remains open to investigation and committed to transparency.
Whether the dispute escalates into a legal confrontation or resolves through institutional review may depend on the intervention of independent agencies and the willingness of both parties to subject their claims to public scrutiny.
