The Nigerian Senate, through its Committee on the South East Development Commission (SEDC), questioned the Managing Director of the commission, Mark Okoye, over the suspected mismanagement of N16.6 billion received from the 2025 budget allocation.
The committee, chaired by Senator Orji Uzor Kalu (Abia North), specifically frowned on the N153 million the commission claimed it spent on renting a one-room liaison office in Abuja, as well as N2.5 billion categorised as implied expenditure.
The MD and other top management staff of the commission came under intense scrutiny when the committee reviewed the financial report submitted during an investigative hearing.
Irked by the MD’s failure to adequately account for expenditures made from the N16.6 billion received from the federal budget, members of the committee expressed disappointment and vowed to ensure full accountability for the funds spent.
Senator Orji Uzor Kalu, in particular, told the MD that inquiries made by the committee showed that the Central Bank of Nigeria had informed it that only N13 billion remained from the N16.6 billion the SEDC received in December last year, indicating that N3.6 billion had been spent and must be properly accounted for.
“This committee is disappointed with the financial report given, which is completely unacceptable,” he said.
Other members of the committee like Senator Enyinnaya Abaribe (Abia South), Senator Victor Umeh (Anambra Central), Senator Austin Akobundu (Abia Central), expressed displeasure on the report presented.
However the SEDC MD in his defence, said expenditures carried out so far from money received were judiciously made.
“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.
“What we want to avoid is a situation where contracts are awarded without the financial capacity to execute them.
 “For example, having a budget of N140 billion does not automatically mean that N140 billion in cash is available.Â
“It would be irresponsible to award contracts worth the entire budget if only N10 billion or N20 billion has actually been released. Doing so would create unfunded liabilities and a significant financial deficit.”
Not satisfied with his explanation, the committee through its Chairman, consequently directed the commission to submit comprehensive records, including contract details, payment information, and all supporting documents latest by 23rd of June
The Chairman thereafter adjourned the session, reiterating the committee’s expectation that all requested information be submitted within the stipulated timeframe.
