The Osun State House of Assembly has cautioned commercial banks in the state against honouring unauthorised financial instructions on local government accounts.
In a letter signed by Speaker Adewale Egbedun, the Assembly alleged that some local governments had issued directives authorising deductions of up to 15 percent from September allocations in favour of private individuals.
He described such actions as ‘illegal, unconstitutional, and without any budgetary approval,’ stressing that treasurers are not recognised signatories to local government accounts under state laws.
‘Only the local government chairman and the Director of Administration and General Services are duly empowered to operate such accounts,’ Egbedun said.
He further warned that any financial institution that processes unauthorised instructions would be deemed complicit in financial misconduct and face legal consequences.
‘Any transaction in breach of this position shall attract the full constitutional and legal consequences, including summons before the House, arrest warrants, blacklisting, and referrals to anti-corruption agencies for investigation and prosecution,’ the letter read.
The assembly reaffirmed its September 29 resolution that no withdrawals or deductions may be made from local government accounts without strict compliance with the Constitution, internal guidelines, and approved budgets.