Osun Assembly vows to recover local government funds unlawfully released by a bank to council executives
The Osun State House of Assembly has pledged to recover local government funds that were allegedly unlawfully disbursed by a bank to certain council executives in the state.
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Speaking on Sunday, Speaker Adewale Egbedun revealed that reliable intelligence indicated the bank had released funds to APC council chairmen and councillors without proper authorization.
He alleged the disbursement occurred under the directive of a former state governor.
Egbedun emphasized that the legislature’s constitutional authority under Section 7 of the Nigerian Constitution empowers it to regulate local government administration, financial controls, and accountability.
He added that the Supreme Court’s financial autonomy ruling for local governments does not negate this legislative power.
Under Osun laws, only career officers appointed through the Local Government Service Commission such as Directors of Finance and Administration are lawful signatories to local government accounts.
Politically elected officials, including chairmen, councillors, treasurers, or political appointees, are forbidden from authorizing transactions.
“Any bank that releases local government funds based on instructions from unauthorized persons acts unlawfully and exposes itself and its officers to criminal liability,” Egbedun said, describing the illegal disbursement as fraudulent rather than a banking practice.
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The Speaker concluded that the money released to council executives constituted a “gift” by the bank, stressing that all local government funds must be properly accounted for.
