The Senate Committee on the South East Development Commission (SEDC) has raised concerns over the management of N16.6 billion released to the commission from the 2025 budget, directing its Managing Director, Mr. Mark Okoye, to provide a detailed account of expenditures made so far.
The committee, chaired by Senator Orji Uzor Kalu, issued the directive during an investigative hearing held on Tuesday to scrutinize the commission’s financial activities.
Members of the committee expressed dissatisfaction with portions of the financial report submitted by the commission, particularly a claim that N153 million was spent on renting a one-room liaison office in Abuja and another N2.5 billion categorized as “implied expenditure.”
Tension rose during the session as lawmakers questioned the commission’s spending pattern and demanded greater transparency in the management of public funds allocated for the development of the South-East region.
Speaking during the hearing, Senator Kalu disclosed that information obtained from the Central Bank of Nigeria (CBN) indicated that out of the N16.6 billion received by the commission in December last year, approximately N13 billion remained in its account, suggesting that about N3.6 billion had already been spent.
According to him, the expenditure must be properly accounted for.
“This committee is disappointed with the financial report presented. The report, as submitted, is completely unacceptable,” Senator Kalu stated.
Other members of the committee, including Senator Enyinnaya Abaribe, Senator Victor Umeh, and Senator Austin Akobundu, also expressed concerns over the financial documentation provided by the commission.
Responding to the lawmakers’ queries, SEDC Managing Director, Mr. Mark Okoye, defended the commission’s spending decisions, insisting that available funds had been utilized prudently and in line with approved priorities.
He explained that the commission had adopted a cautious approach to project execution in order to avoid creating unfunded liabilities.
“Our approach has been to ensure that available resources are directed towards priority projects. We want allocations to guide the procurement process so that contracts awarded can be backed by available funding,” Okoye said.
He added that it would be financially irresponsible for the commission to award contracts equivalent to the total budget size without corresponding cash releases from the federal government.
“For example, having a budget of N140 billion does not automatically mean that N140 billion in cash is available. It would be irresponsible to award contracts worth the entire budget if only N10 billion or N20 billion has actually been released,” he explained.
However, the committee remained unsatisfied with the explanations provided and consequently directed the commission to submit comprehensive financial records, including contract awards, payment schedules, expenditure details, and all supporting documents, on or before the 23rd of this month.
“By the 23rd, we want to have the complete documentation. Once we receive and review the documents, we will determine the date for your next appearance before the committee,” Senator Kalu said.
The hearing was subsequently adjourned, with the committee reiterating its commitment to ensuring accountability, transparency, and prudent management of funds earmarked for the development of the South-East region.
