Council Funds Diversion: How UBA Is Illegally Collaborating With Court-Sacked Osun Council Chairmen Despite Swearing To An Affidavit
….Governor says UBA is on an unholy alliance with the court-sacked APC Chairmen
…. Says Osun insist that the UBA must ensure that every kobo of the local government fund is secured and accounted for.
…Adeleke demands that the state-diverted council fund must be fully accounted for by UBA and the sacked chairmen.
The Osun State Governor, Ademola Adeleke has accused the United Bank for Africa (UBA) of illegally collaborating with the sacked local governments area chairmen in Osun State.
The governor made the statement when he addressed the media on Monday following Federal High Court judgment dismissing the tenure elongation suit filled by Yes or No council Chairmen in Osun State.
Speaking to the media the governor said:”I further call on the United Bank for Africa to stop its illegal collaboration with the sacked chairmen.”
“We remind UBA that it has sworn to an affidavit in which it vowed that the entire diverted local government fund is intact.”
“Based on this affidavit and today’s judgement, we insist that the UBA must ensure that every kobo of the local government fund is secured and accounted for.”
“We demand that the UBA allows signatories prescribed by law to become signatories to the local government accounts. These funds are needed to pay local workers who are in need of their pension and other allowances.”
Again, on Tuesday 16th June while flagging off his campaign in Osogbo the Osun state capital, the governor accused the bank of an unholy alliance with court sacked APC council chairmen.
In his speech he said: “I also call on the United Bank for Africa to end its unholy alliance with court sacked APC council chairmen.
“I demand that our diverted council fund must be fully accounted for by the bank and the sacked chairmen.”
“The dismissal of the elongation request conforms with the stipulations of the constitution,” the governor said.
According to the governor, “The judgment further validates the precedent set by the Supreme Court ruling that tenure elongation is unconstitutional.”
The Federal High Court has stated that the sacked chairmen have no legal foundation to file the case in the first place. Based on this ruling, it is clear the Yes/No chairmen’s tenure, if at all they have any.
It would be recalled that sometimes in January 2026 the state government instituted a criminal case against the United Bank for Africa and its top officials over alleged illegal LGA accounts.
The case stems from alleged illegal opening and operation of local government accounts.
The suit, filed by the state government and marked Charge No: MOS/601c/2025, names the bank and the following executives as defendants: Group Managing Director, Mr. Oliver Alawuba; Company Secretary and Group Legal Adviser, Mr. Billy Odum; and Deputy Managing Director, Mr. Chukwuma Nweke.
According to court documents, the 31-count charge alleges that the defendants conspired, beginning December 9, 2025, at UBA’s Osun State branch in Olonkoro, Osogbo, to unlawfully open, operate, and maintain bank accounts for all 30 local government councils in the state. Each count relates to a separate infraction involving the councils.
The state government claims that the accounts were operated “by unknown private individuals as signatories,” contrary to directives from the Local Government Service Commission, which had introduced official council directors as the authorized signatories. The alleged actions are said to violate Sections 2 and 3 (1) and (2), and punishable under Section 5(1) and (2) of the Osun State Local Government Accounts Administration Law, 2025, as well as Section 516 of the Criminal Code, Cap 34, Volume 2, Laws of Osun State of Nigeria, 2002.
Again, recalled that in January 2026 when the case came up for hearing, the court issued bench warrant against four of UBA’s top officials for refusing to obey summons by the court.
A Chief Magistrate’s Court sitting in Osogbo, the Osun State capital, issued arrest warrants against the United Bank for Africa Plc and four of its senior officials over the alleged illegal operation and maintenance of bank accounts in the name of the 30 local government councils in the state.
In a Certified True Copy of the order titled “Warrant for Arrest of Defendant Who Has Disobeyed Summons (General Title – Form No. 1)”, addressed to the Osun State Commissioner of Police, the court stated in part, “Complaint has been made that the defendant(s) did allow unauthorised persons to operate and maintain 30 accounts opened in favour of the 30 Local Government Councils in Osun State with UBA Bank Plc.
“And the defendant(s) were thereupon summoned to appear before the Chief Magistrate’s Court of Osogbo. An oath has been made that the defendant(s) were duly served with the summons but did not appear, and that such complaint is true.
“You are hereby commanded to bring the defendant(s) before the Magistrate’s Court forthwith to answer to the said complaint or be further dealt with according to law.”
The defendants in the suit are United Bank for Africa Plc; its Group Managing Director, Oliver Alawuba; the Company Secretary and Group Legal Adviser, Billy Odum; and the Deputy Managing Director, Chukwuma Nweke.
According to the charge sheet, the Osun State Government filed a 31-count charge against the bank and its officials, with each count relating to alleged infractions connected to the opening and operation of bank accounts for the state’s 30 local government councils.
In count one, the prosecution alleged that the defendants, on or about December 9, 2025, and on subsequent days, at Olonkoro, Osogbo branch of the UBA, conspired to commit a felony by opening, operating, and maintaining what it described as illegal Osun State Local Government Council accounts.
The alleged offence, according to the charge is said to be contrary to and punishable under Section 516 of the Criminal Code, Cap 34, Volume 2, Laws of Osun State of Nigeria, 2002.
The defendants were further accused of allowing the opening, operation, and maintenance of local government accounts “by unknown private individuals as signatories,” despite the Local Government Service Commission having formally introduced Directors of Administration and General Services, as well as Directors of Finance of the councils, as the authorised signatories to the statutory accounts.
The prosecution said the action constituted an offence contrary to Sections 2 and 3(1) and (2), and punishable under Section 5(1) and (2) of the Osun State Local Government Accounts Administration Law, 2025.
Court documents show that the remaining counts similarly relate to the alleged unlawful opening and operation of accounts connected to all 30 local government councils in Osun State.
