The controversy surrounding the management of local government finances in Osun State has escalated, with conflicting claims emerging from leaders of the Association of Local Governments of Nigeria (ALGON) and the All Progressives Congress (APC).
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In a statement issued in Osogbo, ALGON chairman, Sarafadeen Awotunde—backed by elected local government officials from the Peoples Democratic Party (PDP)—alleged that the administration of council funds under the APC leadership violated provisions of the Local Government Finance Law.
Awotunde said the law “clearly recognises only Directors of Finance and Directors of Administration as authorised signatories to local government accounts. Politicians were allegedly being used as signatories in violation of the statute.”
Stating that the law outlines the specific purposes for which council funds may be applied, he noted claims that Osun workers’ salaries were unpaid while funds were allegedly directed to individuals whose tenure had lapsed following court rulings.
“Those removed by the court or without tenure cannot appoint officials or authorise payments. Nothing legal can be built on an illegal foundation,” he said.
According to him, any actions taken by chairmen without a valid mandate, including drawing salaries or making appointments, “have no legal basis and cannot stand under the law.”
Awotunde also faulted financial institutions involved in the transactions, stating that “banks that opened or operated accounts with illegal signatories acted contrary to the Local Government Finance Law.”
The allegations followed comments attributed to the Speaker of the Osun State House of Assembly, Adewale Egbedun, who reportedly accused the APC elected council chairmen of diverting substantial public funds.
It had earlier reported that the Osun State chapter of ALGON under the APC offered a different account of events, saying councils operated within established legal frameworks.
Addressing journalists at a press briefing in Osogbo on Monday, the APC-backed ALGON chairman, Abiodun Idowu, said, “Local governments followed due process in the opening and regularisation of their accounts.”
Idowu explained that the procedures were “lengthy and guided strictly by statutory requirements. Council operations complied with existing financial regulations.”
