The Managing Director of the South East Development Commission (SEDC), Mark Okoye, faced tough questioning from the Senate Committee on the SEDC on Tuesday over the utilisation of N16.6 billion released to the commission from the 2025 budget.
The committee, chaired by Senator Orji Uzor Kalu, expressed dissatisfaction with the financial report submitted by the commission and directed its management to provide a detailed account of all expenditures made from the funds received.
Lawmakers raised concerns over several entries in the commission’s financial records, including an expenditure of N153 million for a one-room liaison office in Abuja and a separate N2.5 billion listed as “implied expenditure” without adequate explanation.
The concerns emerged during an investigative hearing convened to examine the commission’s financial activities and spending patterns.
Speaking during the session, Kalu said information obtained from the Central Bank of Nigeria indicated that only about N13 billion remained in the commission’s account out of the N16.6 billion released in December 2025.
According to him, this suggested that roughly N3.6 billion had already been spent, prompting the committee’s demand for a comprehensive breakdown of all transactions.
“This committee is disappointed with the financial report presented to us. It is completely unacceptable,” Kalu stated.
Other members of the panel, including Senators Enyinnaya Abaribe, Victor Umeh and Austin Akobundu, also questioned aspects of the report and called for greater transparency in the commission’s financial operations.
In response, Okoye defended the commission’s spending practices, insisting that all expenditures were carried out in accordance with financial regulations and established procedures.
He explained that the commission had adopted a cautious spending approach by ensuring that projects and contracts were tied to actual cash releases rather than projected budget allocations.
According to him, this strategy was designed to prevent the accumulation of unfunded liabilities and ensure that contracts awarded could be fully financed.
“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 a fraction of the funds has been released,” he said.
Despite the explanation, committee members remained unconvinced and directed the SEDC management to submit detailed records of all expenditures, including procurement documents, contract awards, payment schedules and supporting financial records, on or before June 23.
Kalu said the committee would review the documents and subsequently determine when the commission would appear again before the panel.
The hearing was thereafter adjourned, with lawmakers insisting that the commission must account for every kobo of public funds released to it by the Federal Government.
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