Byline: Lateef Dada, Osogbo
The Osun State House of Assembly has warned commercial banks in the state, particularly the United Bank for Africa (UBA) Plc, Osogbo Branch, against honouring unauthorised financial instructions on local government accounts.
In a letter personally signed by the Speaker, Rt Hon Adewale Egbedun, on Thursday, October 2, 2025, concern was raised over unlawful financial directives allegedly issued in some local governments, authorising deductions of up to 15 percent of September 2025 allocations in favour of private individuals.
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Egbedun described such actions as illegal, unconstitutional, and without any budgetary approval, stressing that treasurers are not legally recognised signatories to local government accounts under extant laws.
The assembly maintained that only the local government chairman and the Director of Administration and General Services, both officers of the Local Government Service Commission, are duly empowered to operate such accounts in line with the Osun State Guidelines on Local Government Administration and the Public Financial Management Law, 2020.
Citing its resolution of Monday, September 29, 2025, the assembly reiterated that no withdrawals or deductions may be made from local government accounts without strict compliance with the Constitution, internal regulations, and approved budgets.
It further warned that any financial institution processing unauthorised instructions would be deemed complicit in financial misconduct, in violation of multiple national anti-corruption laws, including the Money Laundering (Prevention and Prohibition) Act, 2022, and would face the full weight of the law.
The Speaker cautioned that erring banks risk severe consequences, including summons before the House, arrest warrants, blacklisting, and referrals to anti-corruption agencies for investigation and prosecution.
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