Osun LG Funds Crisis: Tinubu to Meet Adeleke as Presidency Queries Elumelu
The crisis over local government funds in Osun State has taken a new turn as President Bola Tinubu is set to meet with Governor Ademola Adeleke to address the prolonged dispute surrounding the funds.
The planned meeting is expected to focus on finding a political solution to the deadlock over access to local government allocations.
The disagreement has raised concerns across political and financial circles in the state.
Officials familiar with the development said arrangements for the meeting are already underway. They disclosed that some members of the All Progressives Congress in Osun attempted to block the engagement. Despite this, the President approved the meeting and insisted it should go ahead.
The goal of the discussion, according to insiders, is to resolve the impasse over the management of local government councils and their funds. The meeting is expected to hold soon.
At the centre of the controversy is the Chairman of United Bank for Africa, Tony Elumelu. He was recently invited to the Presidential Villa for talks over the handling of Osun local government funds kept with the bank.
The Presidency raised questions about how the funds were managed and whether any payments were made without proper authorisation. The discussion reportedly focused on allegations that some transactions may have violated financial regulations guiding local government accounts.
Concerns were also expressed about movements of the funds while court cases are still ongoing. The Presidency reportedly warned that no party involved in the Osun dispute should have access to the money until all legal issues are fully settled.
It was further gathered that the role of former Osun governor Gboyega Oyetola was examined during the meeting. Elumelu was said to have mentioned external pressure as one of the reasons behind partial release of the funds.
The bank chairman also sought guidance from the Presidency on what steps to take next regarding the disputed accounts.
Meanwhile, a Magistrate Court in Osogbo had earlier ordered UBA to stop releasing local government funds to individuals claiming to be council chairmen under the APC.
In his ruling, Magistrate Adekanmi Adeyeba barred the bank from “conducting any business transactions with individuals parading themselves as chairmen of local government councils in the state,” pending the conclusion of criminal proceedings involving top bank officials.
He stated that “in the interest of the public and to prevent further abuse of public funds,” the bank must not recognise any group for the purpose of operating accounts on behalf of Osun local governments.
The court also upheld an existing bench warrant against senior UBA officials and ordered that the criminal trial should continue until a final judgment is delivered.
