The Osun State House of Assembly has cautioned commercial banks in the state, particularly the United Bank for Africa (UBA) Plc, Osogbo branch, against honouring illegal financial instructions on local government accounts.
The Speaker, Rt. Hon. Adewale Egbedun, in a letter personally signed on Thursday, said the warning became necessary following reports of unlawful directives in some local governments, including Boluwaduro, allegedly authorising deductions of up to 15 percent of September 2025 allocations in favour of private individuals.
He described such actions as unconstitutional and lacking budgetary approval, noting that treasurers are not recognised signatories to local government accounts under existing laws.
“These actions are illegal, unconstitutional, and have no budgetary approval, treasurers are not legally recognised signatories to local government accounts under extant laws”, he said.
The Speaker reaffirmed that only the local government chairman and the director of administration and general services, both under the Local Government Service Commission, are empowered to operate such accounts in line with the Osun State Guidelines on Local Government Administration and the Public Financial Management Law, 2020.
“Let it be clearly stated that only the Local Government Chairman and the Director of Administration and General Services are authorised to operate such accounts,” he said.
The Assembly, citing its resolution of September 29, 2025, insisted that no withdrawals or deductions should be made from local government accounts without strict compliance with the Constitution, internal regulations, and approved budgets.
“Our resolution of 29th September clearly affirms that no withdrawals or deductions may be made without compliance with the Constitution and the approved budgets,” Egbedun emphasized.
He warned that any financial institution processing unauthorised instructions would be deemed complicit in financial misconduct, contrary to national anti-corruption laws, including the Money Laundering (Prevention and Prohibition) Act, 2022.
“Any bank that processes such illegal instructions will be considered as aiding and abetting financial misconduct, and will face the full weight of the law,” the Speaker warned.
Egbedun further cautioned that defaulting banks risk being summoned before the House, facing arrest warrants, blacklisting, and referrals to anti-graft agencies for investigation and prosecution.
“Erring banks will not escape sanctions, they will be summoned, blacklisted, and referred to the relevant anti-corruption agencies for prosecution,” he declared.
The Assembly also reminded banks of its earlier request demanding full disclosure of all local government accounts domiciled with them, reiterating the 24-hour compliance window already communicated.
“We remind you that your response to our earlier request is still due within the 24-hour timeframe. This matter is of grave public interest and must be treated with urgency,” Egbedun concluded.
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