LG funds: Osun traders’ close UBA accounts over concerns on safety of funds

 

Hundreds of traders in Osun state have requested for the closure of the accounts domiciled with the United Bank for Africa (UBA)

as concerns grows over the safety of the funds with the financial institution.

Traders from different parts of Osun could be seen in UBA branches demanding for the termination of their banking relationship over fears that the unwholesome practices widely reported in the media on the bank’s management of local governments allocations presents a grave challenge to private fund in its possession.

Some of the traders who spoke with this medium said they turned down overt appeal by officials of the bank to rescind their decisions because they are no longer assured of the safety of their funds given the Osun local government funds experience.

ware “Safety is the ultimate consideration in keeping money with bank and when that is now strongly in question, the only option left is to withdraw one’s hard earned money,” one of the traders who choose not to be named said, adding that “If UBA can throw away core financial practice to enable unlawful hijack of public funds, it remains to be seen whose fund will be safe with them. So, the best thing to do is to walk away and that is what is happening today.”

Sharing similar sentiment, another trader who is into fabric sale, said her decision to quit UBA bank was not an easy one as she has maintain an account with the bank for over 15 years, but nothing cones over the safety of her fund.

She noted that reports that the UBA may have bypassed legality and operation standards to allow unauthorized access to Osun local governments fund is concerning and makes her seriously worried on what could happen to her fund under whatever guise.

“Almost everyone knows that civil servants are signatories to public funds and I am sure that the UBA strictly adhere to this basic principle in public accounting in accounts opened in other states except for Osun state just for political expediency. If UBA can do that to government fund, who am I that same thing cannot be done to my money? It is not a risk I am willing to take,” she noted.

It will recalled that the UBA bank was entangled in the struggle for local governments allocation in Osun state and there are reports that the bank ignored local laws on signatories to the funds, which may have granted unauthorised access to it.

The development has pitched top officials of the bank with the Osun State Government, which had taken legal actions against them, resulting in the issuance of a bench warrant against some top officials of the UBA by a court in the state.

As the controversy rages on, traders’ in Osun state who have their accounts domiciled with the UBA are trying to get away from the fallout. Mr. Kolawole (not his real name) said the role of the UBA in the Osun local governments fund impasse send a signal on the danger that comes with an institutional compromise.

He argued that as a top tier financial institution in the country, the UBA is at the pole position of building confidence in Nigeria’s banking sector, but what is playing out with the Osun local governments fund is that fund safety can easily be compromised to satisfy personal interest.

“At least, Nigeria has about 24 banks and why the UBA made itself available for such action that spotlights compromise of safety in banking. Signatories is at the heart of the security of fund domiciled in any bank and if someone can just turn up and the UBA will accept such as signatory put fund at a grave risk. That is why I am leaving,” he pointed out.

He added that “It is a common knowledge that signatories to public accounts are civil servants. Is the UBA telling the whole world that the Presidency account or those of states domiciled with it have the President or Governors’ as signatories? What is happening in Osun is pure compromise and anyone who don’t want to take risk with his or her fund can no longer trust such relationship.”