The Osun State House of Assembly has raised fresh concerns over the alleged diversion and illegal handling of local government funds running into about N25 billion, setting off a sharp exchange between the lawmakers and the Minister of Marine and Blue Economy, Adegboyega Oyetola.
At a media briefing held in Osogbo on Sunday, the Assembly accused what it described as illegal APC chairmen of local councils of benefiting from the controversial disbursement of council funds, allegedly facilitated through the influence of the former governor and a deposit money bank.
The lawmakers alleged that N25 billion was paid to each of the 30 APC chairmen, while N12 million was allegedly disbursed to each of the 30 APC vice chairmen.
They further claimed that N10 million was paid to each of the 332 APC councillors, N130 million each to selected traditional rulers across the state, and N13 billion as legal fees to Layonu and Co, said to represent 15 percent of the deposited funds.
Speaker of the Assembly, Adewale Egbedun, described the development as a direct assault on public interest and warned that the House would pursue full recovery of any illegally handled funds.
“We will not tolerate the diversion of public funds meant for salaries, healthcare, education, and community development into private hands to fund the election of a particular politician in Osun State,” Egbedun said.
He also cautioned financial institutions involved in the alleged transactions, stressing that banks have no authority to release council funds based on instructions from unauthorised individuals.
“Any bank that releases council funds on the instructions of unauthorised persons, regardless of who issued such instructions, acts unlawfully and exposes itself and its officers to criminal liability. Illegal disbursement of public funds is fraudulent. It is not banking practice. It is not political discretion. It is a crime,” the Speaker added.
In response, Oyetola dismissed the allegations, describing them as baseless and politically motivated. In a statement issued by his Special Adviser, Dr Bolaji Akinola, the minister denied any involvement in the administration or disbursement of local government funds in Osun State.
Akinola said all local councils in Nigeria enjoy financial autonomy and are beyond the control of any individual or authority, including the state government and federal ministers.
“The attempt to link the minister to the administration or disbursement of local council funds is reckless propaganda designed to distract the public from the state government’s own failures and ongoing legal battles,” the statement read.
He maintained that Oyetola has no constitutional or statutory role in local government finance and has neither issued directives to banks nor interfered in the running of the councils.
