The Osun State House of Assembly on Sunday raised the alarm over what it described as illegal disbursement and diversion of local government funds running into about N50 billion, allegedly involving the Minister of Marine and Blue Economy, Adegboyega Oyetola, the United Bank for Africa (UBA), and some sacked All Progressives Congress (APC) local government officials.

The Assembly warned that all unlawfully disbursed funds would be recovered and those found culpable prosecuted, while also cautioning UBA against further transactions it termed unauthorized.

Addressing journalists in Osogbo, Speaker of the House, Rt. Hon. Adewale Egbedun, alongside other principal officers, accused court-sacked APC council chairmen and councillors of illegally accessing local government accounts and approving payments despite lacking legal authority.

The lawmakers listed payments allegedly made from council funds to include N25 million each to 30 APC chairmen, N12 million each to 30 vice chairmen, N10 million each to 332 councillors, N130 million each to selected traditional rulers, and N13 billion said to be paid as legal fees to lawyers representing the officials.

According to the Assembly, the disbursements were carried out while local government workers allegedly remained unpaid.

“Not one naira has been paid as salaries of local government workers in the last 12 months by these illegal chairmen — primary school teachers, nurses, health workers, civil servants and retirees have been neglected,” the Speaker said.

The House further alleged that plans were underway to release another N50 billion under the guise of project funding for political purposes, warning that such action would be resisted.

It maintained that only duly appointed career officers under the Local Government Service Commission are legally recognised as signatories to council accounts, stressing that elected chairmen and political appointees are barred from operating the accounts.

The Assembly said it had formally written to banks, including UBA, to that effect, warning that any bank that honours instructions from unauthorized persons risks criminal liability.

“Any bank that releases local government funds on the instructions of unauthorized persons acts unlawfully. Illegal disbursement of public funds is a crime, not banking practice or political discretion,” the Speaker said.

The lawmakers accused Oyetola of unlawful interference in local government finances, insisting he has no constitutional or statutory authority over council funds or administration.

They added that relationship with the President does not confer legal powers over Osun local governments, noting that governance must be guided strictly by law.

The House also commended Governor Ademola Adeleke for what it described as sacrifices made in ensuring the payment of salaries of primary school teachers, health workers and local government staff despite alleged withholding of allocations.

Reaffirming its constitutional powers, the Assembly said its oversight and legislative authority over local government administration remains valid under Section 7 of the Constitution.

The statement was signed by the Speaker’s Chief Press Secretary, Olamide Tiamiyu.