Commercial banks operating in Osun State, particularly the United Bank for Africa (UBA) PLC, Osogbo branch, have been cautioned by the Osun State House of Assembly against honouring unauthorised financial instructions on Local Government accounts.
Adewale Egbedun, the Speaker, in a letter signed on Thursday, pointed to the unlawful financial directives allegedly issued in some Local Governments, including Boluwaduro Local Government, authorising deductions of up to 15% of September 2025 allocations in favour of private individuals.
The Speaker 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 House reiterated 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.
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Egbedun warned that any bank that processes unauthorised transactions would face the full wrath of the law, including blacklisting, arrest warrants, and referrals to anti-graft agencies under the provisions of the Constitution, the Criminal Code Act, and the Money Laundering (Prevention and Prohibition) Act, 2022.
He stated, “This Honourable House has been made aware that certain Local Government Areas in Osun State including but not limited to Boluwaduro Local Government have issued financial instructions authorising deductions from their accounts in favour of private parties. One such instance is the instruction to deduct 15 percent of funds received in September 2025, allegedly authorised by the Local Government Treasurer and Chairman.
”Let it be clearly stated for record purposes that the Treasurer is not a legally recognised signatory under the extant Osun State laws governing the operation of Local Government accounts. Specifically, Section 14 of the Guidelines for the Administration of Local Government stipulates that only persons listed by the House of Assembly resolution, which stipulates that only the Local Government Chairman, Director of Administration and General Services, as officers under the employment of the Local Government Service Commission, are authorised to operate such accounts.”
Egbedun stressed that the matter is of grave public interest and must be treated with the utmost urgency and seriousness it deserves.
