The Senate Committee on the South East Development Commission (SEDC) and the management of the commission engaged in a heated exchange on Tuesday over the utilisation of N16.6 billion released to the agency, with lawmakers raising concerns over several expenditure items, including N153 million spent on an Abuja liaison office and a N2.5 billion provision listed as “implied expenditure.”
The disagreement unfolded during an investigative hearing convened by the Senate Committee on SEDC, chaired by Senator Orji Uzor Kalu, as part of its oversight responsibilities.
At the centre of the scrutiny was the commission’s financial report presented by the Managing Director of the SEDC, Mark Okoye, and other senior officials of the agency.
Lawmakers Demand Accountability
Members of the committee questioned how funds released to the commission had been utilised since the agency received its allocation in December 2025.
Senator Kalu disclosed that records available to the committee indicated that only about N13 billion remained from the N16.6 billion released to the commission, suggesting that approximately N3.6 billion had either been spent or committed.
Expressing dissatisfaction with the financial report submitted by the commission, Kalu described the document as inadequate and unacceptable, insisting that every expenditure must be fully justified.
The committee particularly queried the reported N153 million expenditure on an Abuja liaison office, with lawmakers arguing that the amount appeared excessive for the facility being occupied by the commission.
Other committee members, including Senator Enyinnaya Abaribe, Senator Victor Umeh and Senator Austin Akobundu, also challenged aspects of the report and demanded detailed explanations for several expenditure items.
The lawmakers maintained that as a newly established intervention agency, the SEDC must uphold the highest standards of transparency and accountability in managing public resources.
SEDC Defends Financial Decisions
Responding to the concerns, Okoye defended the commission’s spending pattern, insisting that all expenditures were lawful and aimed at building the institutional capacity of the agency while advancing developmental projects across the South-East region.
He explained that the commission had deliberately adopted a cautious financial strategy to avoid creating liabilities that could exceed available cash resources.
According to him, budgetary provisions should not be mistaken for actual cash available for spending, stressing that contract awards must be tied to funds that have been released rather than total budget estimates.
Okoye argued that awarding contracts based solely on approved budgets without corresponding cash backing could result in abandoned projects, financial deficits and unfunded obligations.
The SEDC chief said the commission’s approach was designed to ensure that projects are implemented within available resources while maintaining fiscal discipline.
Senate Orders Submission of Documents
Despite the explanations offered by the commission, the committee remained unsatisfied and directed the SEDC to submit comprehensive documentation detailing all expenditures and commitments.
The lawmakers requested procurement records, payment schedules, contract documents and other supporting financial records to enable the committee conduct a thorough review of the commission’s financial activities.
Senator Kalu subsequently directed the commission to provide all requested documents on or before June 23, after which the committee would determine the date for a subsequent appearance by the agency.
Commission Clarifies N153m Office Expenditure
Following the hearing, the SEDC issued a statement providing further clarification on the disputed expenditure items.
The commission explained that the N153 million cited by lawmakers was not solely for rent but covered the establishment and operation of its Abuja liaison office located at the Congress Building on Mississippi Street in Maitama, Abuja.
According to the agency, the office occupies the basement, ground floor and boardroom sections of the building under a duly executed lease agreement.
The commission stated that the expenditure includes rent, utility services, operational costs and office fit-out works carried out from February 2025 to date.
N2.5bn Yet to Be Disbursed, Says SEDC
The SEDC also addressed questions surrounding the N2.5 billion listed as “implied expenditure.”
According to the commission, the amount relates to a contract approved for the rehabilitation of its headquarters in Enugu and was awarded in compliance with the provisions of the Public Procurement Act.
The agency clarified that the funds have not been released to any contractor and remain in its accounts.
It explained that the amount was reflected as a financial commitment tied to an approved project rather than an actual disbursement.
Commitment to Transparency
The commission further stated that expenditures recorded so far were connected to institutional establishment, project development, stakeholder consultations, regional development programmes and other foundational activities necessary for the operation of the newly created agency.
Reaffirming its commitment to accountability, the SEDC pledged full cooperation with the Senate’s oversight process and assured lawmakers that all requested financial records and supporting documents would be submitted within the stipulated timeline.
The development sets the stage for further legislative scrutiny of the commission’s finances as the Senate seeks detailed explanations on how public funds allocated to the South East Development Commission have been managed since its establishment.
