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THE Osun State House of Assembly has cautioned commercial banks, particularly United Bank for Africa (UBA) Plc, Osogbo Branch, against honoring unauthorized financial instructions on Local Government accounts.
This warning follows allegations of unlawful deductions from Local Government allocations, including a 15% deduction from Boluwaduro Local Government’s September 2025 allocation.
The Assembly condemned deductions made without budgetary approval, stressing that treasurers are not recognized signatories to Local Government accounts.
“Only Local Government Chairmen and Directors of Administration and General Services are empowered to operate these accounts.
Banks processing unauthorized instructions risk severe penalties, including summons, arrest warrants, blacklisting, and referrals to anti-corruption agencies.
The Assembly’s resolution emphasizes the importance of strict compliance with the Constitution, internal regulations, and approved budgets. Any bank found complicit in financial misconduct will face the full weight of the law, including prosecution under the Money Laundering (Prevention and Prohibition) Act, 2022.”
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This development is part of a broader controversy surrounding Local Government fund management in Osun State. The state government has accused the Central Bank of Nigeria and the Accountant General of the Federation of plotting to divert Local Government funds into private accounts.
The Assembly’s warning underscores the need for transparency and accountability in Local Government fund management.
It also highlights the potential consequences for banks that fail to comply with the law and regulations governing these transactions.
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