Oyo Assembly Clears Pacesetter Transport Service, Exposes Vendor Fraud

IBADAN, OYO STATE – The Oyo State House of Assembly has decisively dismissed widespread fraud allegations against the management of the Oyo State Pacesetter Transport Service (PTS), bringing to an end a petition lodged by the Association of Sacked Supervendors and Investors. The Assembly’s decision, announced during a plenary session presided over by Speaker Rt. Hon. Adebo Ogundoyin on Tuesday, follows a thorough investigation that unearthed a sophisticated scheme of collusion and illicit financial activities involving the disgruntled former vendors.

The petition, filed by Mr. Ibrahim Asiwaju, Chairman of the Association of Sacked Supervendors and Investors, claimed mismanagement and irregularities within PTS. However, the House Standing Committee on Transport, led by Hon. Adebayo Babajide, recommended its dismissal due to “lack of merit and substantive evidence.”

In a detailed report presented to the House, Hon. Babajide revealed that the Committee’s investigation uncovered illegal activities, collusion, and outright fraud between the sacked vendors and PTS drivers. This misconduct, he stated, directly led to the termination of the vendors’ contracts.

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“Prior to the introduction of the card payment system to streamline transactions, the company faced significant revenue leakages, with an average daily income reportedly around N200,000,” Hon. Babajide explained. “Following the implementation of the card payment system, the revenue surged to N2,000,000 on the very first day. While the engagement of vendors to monitor card reader machines initially reduced these leakages, their subsequent collusion with drivers on cash fare collection led to further fraud, prompting the company to terminate their contracts.”

The Committee further discovered that Pacesetter Transport Service is responsible for its retirees’ pensions and gratuities, as well as staff salaries. To enhance efficiency and productivity, the lawmaker urged the House to direct PTS to consider adopting the use of contract staff and to widen its scope from inter and intra-city routes to interstate operations.

Hon. Babajide emphasized that PTS operations are in line with established guidelines and are subject to the approval of Governor Seyi Makinde. He recommended that the Executive Arm of Government, through the SAFER Program, increase subvention to PTS to support its subsidized services to the citizens of the state.

Crucially, the House recommended that “the use of vendor systems for revenue generation be terminated due to misconducts and the terms of engagement of contract staff be redefined regarding the period of engagement and other conditions of service.” The Assembly also urged PTS management to restructure its workforce, addressing those found guilty of misconduct and repeated suspensions.

To ensure transparency and enhanced productivity, the House directed PTS to design and implement a well-structured organogram that clearly defines reporting lines, job roles, and responsibilities for all personnel, thereby eliminating ambiguity and preventing role duplication. Lastly, PTS has been urged to operate strictly in accordance with its established conditions of service.

This development sheds light on the challenges faced by public transport services in revenue collection and the critical need for robust systems to prevent fraud and ensure accountability. The Oyo State House of Assembly’s swift action underscores its commitment to overseeing public utilities and ensuring their effective and transparent operation for the benefit of the populace.