Court Stops UBA From Disbursing Osun LG Funds to APC Chairmen

The Oyo State High Court has barred the United Bank for Africa (UBA) from releasing local government funds linked to elected officials of the All Progressives Congress (APC) in Osun State.

Osun State Government had approached the court over allocations said to have been withheld for more than six months.
The case was filed by the state’s Attorney General alongside the Osun Local Government Service Commission.

In their motion, the government lawyers asked for an “Order of Interim Injunction restraining the Defendant/Respondent from paying and/or causing to be paid all and/or any of that funds which constitute the statutory Local Government funds of all the 30 Local Governments in Osun State.”

Justice A.L. Akintola, who presided over the matter, agreed with the applicants. The judge ordered UBA to hold back the disputed funds until the case is heard fully.
According to the court, the order was temporary and could be challenged by the bank when it formally joins issues with the claimants.

“It is only an interim order that the defendant/respondent will have the opportunity to possibly challenge once the defendant turns up to join issues with the claimants on the motion on notice for an order of interlocutory injunction already filed in this case,” the court stated.

“Accordingly, the interim orders of injunction sought are hereby granted as prayed, on the claimants/applicants.”

This development comes weeks after a legal dispute between Osun State and some council chairmen loyal to the APC.