By Peter Omopo
An Oyo State High Court has restrained the United Bank for Africa (UBA) from releasing funds belonging to the 30 local governments in Osun State, following a dispute over control of the allocations.
Justice A.L. Akintola issued the interim order on Friday after an ex parte application filed by the Osun State Attorney-General, who argued that any delay in intervention could cause “irreversible harm.” The injunction prevents UBA from disbursing statutory allocations pending the determination of a motion on notice scheduled for hearing on October 3.
In a covering letter to the bank, lead counsel to the Osun State Government, Musibau Adetunbi (SAN), reminded UBA of its duty to comply with the ruling, warning that the order applied to all accounts held in the name of the 30 local governments.
The court action comes amid controversy over attempts by court-sacked All Progressives Congress (APC) local government chairmen and councillors to access the funds. The Osun State House of Assembly on Monday also cautioned commercial banks against granting unauthorised access to LG allocations, stressing that only officers appointed through the Local Government Service Commission could serve as signatories.
In a resolution, the Assembly warned: “Any attempt by unauthorised persons to access local government funds is unlawful, unconstitutional, and of no legal effect. Violators will be treated as aiding and abetting financial fraud.”
Meanwhile, the Central Bank of Nigeria (CBN) and the Office of the Accountant General of the Federation (OAGF) on Monday denied releasing any allocations to the APC chairmen. Their counsel told the Federal High Court in Abuja that claims of disbursement were “unfounded and speculative,” citing lack of documentary evidence.
Counsel to the Osun Government, however, insisted the funds had been unlawfully released through special accounts opened at UBA, prompting the urgent application before the Oyo High Court. He further disclosed that the case was filed in Ibadan because judicial activities in Osun remained paralysed by strike action.
The Federal High Court is also considering whether the substantive case should be returned to Osogbo, with the next hearing expected after the vacation period.
