In a startling development that has sent shockwaves through Osun State’s political landscape, the state chapter of the Peoples Democratic Party (PDP) has issued a clarion call to the Inspector-General of Police (IGP) to launch a thorough investigation into what it describes as a brazen attempt by former All Progressives Congress (APC) Local Government Chairmen to siphon nearly N13 billion from the state’s local government coffers under the guise of legal fees. The PDP’s allegations, detailed in a statement released on Wednesday in Osogbo and signed by its State Chairman, Hon. Sunday Bisi, have raised serious concerns about financial mismanagement, impunity, and disregard for legal processes by the APC’s former council leaders.
The controversy stems from a leaked letter, which has gained significant traction online, allegedly authored by one of the sacked APC Local Government Chairmen. The letter reportedly directed the United Bank for Africa (UBA) to pay a law firm—whose identity has been withheld—15 percent of the funds recently allocated to the council’s account as legal fees. According to the PDP, this directive was not an isolated incident but part of a coordinated effort across all 30 Local Government Councils in Osun State, where APC ex-chairmen issued similar instructions to the bank. The PDP claims that the total balance in the local government accounts amounts to approximately N85 billion, and 15 percent of this sum equates to a staggering N12.75 billion, which the APC allegedly intended to funnel to the unnamed law firm.
Hon. Sunday Bisi, in his statement, described the scheme as a calculated attempt to plunder public funds, thwarted only by a timely court order issued by the Oyo State High Court on Friday. The court’s injunction restrained UBA from allowing any payments from the accounts opened by the APC ex-chairmen, into which the Central Bank of Nigeria (CBN) had deposited seven months’ worth of seized local government allocations. The PDP hailed the court’s intervention as a critical step in safeguarding public funds from what it termed an “audacious and illegal” plot.
The PDP’s allegations go beyond the financial implications, pointing to procedural irregularities and potential criminality in the actions of the APC ex-chairmen. According to Bisi, the letters instructing the deductions were co-signed by individuals falsely designated as “treasurers” of the local governments. The PDP chairman emphasized that the position of treasurer does not exist within the local government scheme of service anywhere in Nigeria, raising questions about the legitimacy of the signatories. In one particularly striking revelation, the PDP disclosed that one of the individuals used as a co-signatory is a non-teaching staff member of a private polytechnic in Boluwaduro Local Government Area, further casting doubt on the integrity of the process.
The leaked letter, reportedly written just days before the PDP’s statement, instructed UBA to deduct 15 percent from the local government accounts and transfer the funds to a legal practitioner with a UBA account. The PDP revealed that the APC ex-chairmen had signed irrevocable letters of deduction in favor of the law firm, with payments scheduled to commence from February 2025 and continue through September 2025. This arrangement, the PDP argued, was not only unauthorized but also a flagrant violation of public finance rules and regulations.
The PDP’s statement was scathing in its criticism of the APC, accusing the party of descending to “the lowest level with outright impunity and deliberate trampling on the law and the constitution.” Bisi highlighted that the APC’s actions persisted despite a subsisting case before the Supreme Court and the Oyo State High Court’s injunction, which explicitly barred any disbursements from the affected accounts. The PDP described the scheme as a deliberate attempt to undermine the rule of law and plunder the resources meant for the development of Osun State’s local communities.
In light of these allegations, the PDP has called for immediate action from law enforcement authorities. The party urged the Inspector-General of Police to initiate a criminal investigation into the leaked letters and their authors, insisting that all individuals involved in the alleged scheme be held accountable. “All perpetrators of this illegality must be brought to book,” the statement concluded, underscoring the PDP’s resolve to ensure justice is served.
The controversy has reignited debates about transparency and accountability in the management of local government funds in Osun State. The local government system, often seen as the closest tier of government to the people, is critical to grassroots development, providing essential services such as education, healthcare, and infrastructure. The alleged attempt to divert nearly N13 billion from these funds has sparked outrage among residents and political observers, who view it as a betrayal of public trust.
The PDP’s allegations also come at a time of heightened political tension in Osun State, where the PDP and APC have been locked in a fierce rivalry. The APC, which previously controlled the state’s local government councils, has faced criticism for its handling of public resources, while the PDP, now in power at the state level, has positioned itself as a champion of accountability and good governance. The leaked letter and the subsequent court injunction have added fuel to this rivalry, with both parties trading accusations of corruption and mismanagement.
The Oyo State High Court’s intervention has been widely praised as a victory for the rule of law. By halting the alleged payments, the court has ensured that the local government funds remain intact, at least for now, pending further legal proceedings. However, the PDP’s call for a criminal investigation signals that the matter is far from resolved. The involvement of non-council staff as signatories, the use of a non-existent position like “treasurer,” and the sheer scale of the alleged fraud have raised serious questions about the oversight mechanisms in place for managing local government finances.
As the investigation unfolds, all eyes will be on the Inspector-General of Police and other relevant authorities to see how they respond to the PDP’s demands. The outcome of this probe could have far-reaching implications, not only for the individuals involved but also for public confidence in the management of local government funds in Osun State and beyond. For now, the PDP’s allegations have cast a dark shadow over the APC’s legacy in the state, while the court’s intervention has provided a temporary reprieve for Osun State’s local government finances.
In conclusion, the PDP’s call for a police investigation into the alleged N13 billion fraud scheme underscores the need for vigilance in safeguarding public resources. The accusations, if proven true, highlight a disturbing trend of impunity and disregard for legal processes, which could undermine the development of Osun State’s local communities. As the state awaits further action from law enforcement, the controversy serves as a stark reminder of the importance of transparency, accountability, and adherence to the rule of law in governance. The PDP’s bold move to expose the alleged scheme has set the stage for a high-stakes battle, both in the courts and in the court of public opinion, as Osun State grapples with the fallout of this explosive scandal.
