Osun Assembly Locks Horns With Banks Over LG Funds

Osun Assembly Locks Horns With Banks Over LG Funds

 

Egbedun warns UBA, others: “Stop aiding looters or face the law”

 

The Osun State House of Assembly has drawn a battle line with commercial banks operating in the state, particularly the United Bank for Africa (UBA), Osogbo branch, warning them to desist from honouring what it described as “illegal and fraudulent” instructions on Local Government funds.

 

In a blistering letter signed by the Speaker, Rt. Hon. Adewale Egbedun, the Assembly accused some Local Government officials of colluding with private interests to siphon public money through backdoor directives — including a controversial instruction in Boluwaduro Local Government authorising a 15 per cent deduction from the September 2025 allocation.

 

Egbedun declared the act as a “clear violation of the Constitution, the Public Financial Management Law, and every principle of accountability,” stressing that Treasurers have no legal authority to operate council accounts. He noted that under Osun State law, only the Local Government Chairman and the Director of Administration and General Services are authorised signatories.

 

The Speaker warned that any bank caught processing such “criminal deductions” would be deemed a partner in corruption and treated as an enemy of the people.

 

“Let it be known that this House will not sit idly while public funds meant for development are looted under the cover of banking institutions. Any bank that honours unauthorised instructions will face the full weight of the law — including summons, arrest warrants, blacklisting, and referrals to the EFCC and ICPC,” the Speaker thundered.

 

 

 

The Assembly also cited its resolution of September 29, 2025, which prohibits withdrawals from council accounts without strict compliance with constitutional provisions and approved budgets. It vowed to hold financial institutions accountable under anti-graft laws, including the Money Laundering (Prevention and Prohibition) Act, 2022.

 

Political observers say the Osun Assembly’s move is a direct warning shot at entrenched interests that have long seen Local Government allocations as “free cash.” By placing banks on the spot, the Assembly has shifted the corruption war from the councils to the financial sector — a move likely to ruffle feathers in both political and business circles.

 

Egbedun reminded banks that their response to the Assembly’s earlier directive demanding full disclosure of all Local Government accounts remains overdue. He stressed that the matter is of “grave public importance” and must be treated with urgency, warning that the legislature will no longer tolerate “financial institutions aiding looters of the people’s money.”