Warns UBA Banks Over Alleged Illegal Disbursement of Local Government Funds
The Osun State House of Assembly under the leadership of Rt. Hon. Wale Egbedun has raised serious allegations of large scale financial misconduct involving local government funds under councils controlled by the APC, accusing senior political actors and financial institutions of unlawful disbursement of public resources.
According to the Speaker Egbedun, several billions of naira meant for grassroots governance were allegedly diverted for political and private purposes. The Assembly claimed that ₦10 million each was paid to three APC local government councils, while ₦1.5 billion per local government was allegedly allocated to selected traditional rulers across affected areas.
The House further alleged that about ₦13 billion was paid to private lawyers representing APC chairmen and councillors, despite the fact that the legal services were rendered in their personal capacities and not on behalf of the local councils. Lawmakers described the payments as illegal, noting that the lawyers were not formally engaged by the councils.
As part of its inquiry, the Assembly demanded explanations from Mr. Tunde Jamilola over claims that portions of an estimated ₦10 billion were authorized for payment to private law firm Lanyer & Co. from local government accounts. The lawmakers stated that, if confirmed, such actions would amount to a criminal violation of public finance laws and vowed to obtain detailed bank transaction records, including fund transfers through United Bank for Africa Plc (UBA).
The Assembly expressed concern that, despite these alleged disbursements, local government workers have reportedly gone unpaid for seven months, affecting primary school teachers, nurses, healthcare workers, civil servants, retirees, and traditional rulers. Lawmakers described the situation as alarming and unacceptable.
Additionally, the House disclosed reports suggesting plans to disburse an additional ₦50 billion in local government funds for political purposes, allegedly disguised as project expenditures. The lawmakers warned that any diversion of funds meant for salaries, healthcare, education, and community development would not be tolerated.
The House reiterated that only duly appointed career officers—specifically directors of finance and administration appointed through the Local Government Service Commission are legally authorized to manage and instruct local government accounts. It cautioned that any bank acting on instructions from unauthorized individuals would be liable under the law.
In a direct warning to UBA, the Assembly stated that any illegally disbursed local government funds would be fully recovered and treated as evidence of complicity in financial crime. Lawmakers also placed financial regulators and the international community on notice, warning of potential reputational and legal consequences for institutions involved in unlawful transactions.
The Speaker commends Osun State Government for sustaining salary payments to state workers over the past 12 months despite the withholding of local government allocations, the Assembly stressed that such sacrifices must not be used to justify the diversion of local government funds.
The lawmakers concluded by reaffirming their commitment to defending democracy, upholding the rule of law, and safeguarding public funds, insisting that no individual, institution, or political interest is above the law.
