The Osun State Government has denied instructing banks to stop direct payment of monthly allocations directly into the accounts of local governments in the state.
In a statement by Commissioner for Local Government and Chieftaincy Affairs, Prince Adebayo Adeleke, the state government said the administration of Governor Gboyega Oyetola was complying with NFIU rules and guidelines.
He said, "To set the record straight, the mandate for the payment of salary, which consists of statutory and non-statutory ones had been presented to the bank for onward transfer to all necessary accounts since Tuesday, June 9, 2020.
"Since he was sworn into office, payment of salary has always been on the priority list of Governor Oyetola and he has paid full salaries since assuming office mostly between 25th and 29th of every month.
"At a time when some states are yet to pay May salaries and with a few already slashing salaries due to the impact of COVID-19 on the economy, Osun has paid its workers.
"For emphasis, the governor did not at any time instruct any bank to stop the payment to local government accounts or flout the NFIU rules and guidelines.”