The committee, chaired by Senator Orji Uzor Kalu, expressed dissatisfaction with the commission’s financial records and demanded a detailed account of all expenditures made from the funds received so far.
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 management of N16.6 billion released to the agency under the 2025 budget.
The committee, chaired by Senator Orji Uzor Kalu, expressed dissatisfaction with the commission’s financial records and demanded a detailed account of all expenditures made from the funds received so far.
Lawmakers were particularly concerned by claims that the commission spent N153 million on rent for a one-room liaison office in Abuja and recorded another N2.5 billion as “implied expenditure” without adequate explanation.
The concerns were raised during an investigative hearing after the committee reviewed financial documents submitted by the commission.
Members of the panel faulted the report presented by the SEDC management, arguing that it failed to clearly explain how a significant portion of the funds had been utilised.
Kalu revealed that information obtained from the Central Bank of Nigeria (CBN) showed that only about N13 billion remained in the commission’s account from the N16.6 billion released in December 2025.
According to him, this indicated that roughly N3.6 billion had already been spent and must be fully accounted for.
“This committee is disappointed with the financial report presented to us. It is completely unacceptable,” Kalu said.
Other committee members, including Senators Enyinnaya Abaribe, Victor Umeh and Austin Akobundu, also raised concerns about the commission’s financial disclosures and called for greater transparency.
In his defence, Okoye maintained that all expenditures were made prudently and in line with financial regulations.
He explained that the commission had adopted a cautious approach to project execution by ensuring that contracts were backed by actual cash releases rather than budgetary projections.
“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,” he said.
Okoye added that the commission was determined to avoid awarding contracts beyond available resources.
“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. Doing so would create unfunded liabilities and a significant financial deficit,” he said.
The explanation, however, failed to satisfy members of the committee.
The panel subsequently directed the SEDC management to submit detailed records of all financial transactions, including contract awards, payment schedules, procurement documents and other supporting records, on or before June 23.
“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,” Kalu said.
The hearing was thereafter adjourned, with the committee warning that the commission would be required to provide a full account of every expenditure made from funds released by the Federal Government.
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