Osun State House of Assembly has warned commercial banks operating in the State against unauthorized financial transactions on Local Government Accounts.
The warning was contained in a letter signed by the Speaker of the House, Prince Adewale Egbedun Osogbo, the State capital.
According to the letter, Prince Egbedun described the alleged financial instructions of deducting of up to 15% of the September 2025 Allocations in favour of private individuals as “illegal and unconstitutional”.
The House emphasized that such actions lacked legal backing and budgetary approval, and are in clear violation of the Osun State Public Financial Management Law, 2020, and other statutory regulations.
The Signatory to the letter notes that, “Treasurers are not legally recognised signatories to Local Government accounts under extant laws.
Only the Local Government Chairman and the Director of Administration and General Services (DAGS) both officers of the Local Government Service Commission are legally empowered to operate these accounts.”
The Speaker emphasized that no withdrawals or deductions can be made from Local Government accounts without strict adherence to the Constitution, internal financial guidelines, and approved budgets.
“Any bank that processes such unauthorised instructions would be held complicit in financial misconduct, in contravention of several national laws, including: The Money Laundering (Prevention and Prohibition) Act, 2022, the Economic and Financial Crimes Commission (EFCC) Act, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) Act,and the Criminal Code Act.” The Speaker explains further
” Severe consequences await any institution found culpable, including summons before the House, issuance of arrest warrants, referral to anti-corruption agencies, blacklisting of the bank
and recommendation for removal of government patronage” the House added.