KEY POINTS

• The Senate questioned SEDC over N153m allegedly spent renting a one-room Abuja liaison office.
• The committee says about N3.6bn of the N16.6bn released remains unaccounted for.
• SEDC boss Mark Okoye defended the spending and must submit full records by June 23.

The Senate has placed the Managing Director of the South East Development Commission, Mark Okoye, under scrutiny over the management of funds released to the commission from its 2025 budget. During an investigative hearing, the Senate Committee on the South East Development Commission, chaired by Orji Uzor Kalu, raised concerns over expenditures from the N16.6 billion the commission received.

Lawmakers question the spending

Specifically, the committee queried an alleged N153 million spent on renting a one-room liaison office in Abuja, even though the commission’s headquarters sits in Enugu. Moreover, it flagged what it called N2.5 billion in implied expenditure within the commission’s financial report. The scrutiny followed a review of records the commission submitted as part of the committee’s oversight work.

According to Kalu, available information showed that the commission received N16.6 billion in December and that only about N13 billion remained in its account. Therefore, he said, roughly N3.6 billion had been spent and must be fully accounted for. “This committee is disappointed with the financial report presented. It is completely unacceptable,” he said. Similarly, Senators Enyinnaya Abaribe, Victor Umeh and Austin Akobundu voiced concern over the report.

Okoye defends the commission

Responding to the allegations, Okoye defended the spending and insisted that the commission had acted prudently and in line with available resources. According to him, the commission ties its projects and procurement to actual cash releases rather than budget figures alone. “We want allocations to guide the procurement process so that contracts awarded can be backed by available funding,” he said.

Furthermore, Okoye warned that awarding contracts on budget provisions without matching cash could create unfunded liabilities. “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 said.

However, the committee rejected the explanation and directed the commission to submit comprehensive records. These including contract details, payment records and supporting documents, on or before June 23. Consequently, Kalu said the panel would review the documents before fixing a date for the commission’s next appearance. Ultimately, the hearing was adjourned, with the committee insisting that all requested documents arrive within the stipulated timeframe.