The Oyo State High Court has issued an order restraining the United Bank for Africa (UBA) from disbursing local government funds allegedly linked to elected officials of the All Progressives Congress (APC) in Osun State.
The Osun State Government, through its Attorney General and the Local Government Service Commission, filed the case, arguing that the allocations had been withheld for over six months.
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.”
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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.