Senate Grills South East Development Commission Over #153m Abuja Office Rent, #3.6bn Expenditure from #16.6bn Allocation
…Demands full account of expenditure
…All expenditures were prudent and based on available resources — Okoye
The Senate has questioned the management of funds released to the South East Development Commission (SEDC), raising concerns over the commission’s expenditure profile and demanding a comprehensive account of its spending.
The Senate Committee on the South East Development Commission, chaired by Senator Orji Uzor Kalu, subjected the commission’s Managing Director and Chief Executive Officer, Mr. Mark Okoye, to intense scrutiny during an investigative hearing on the utilisation of funds released from the commission’s 2025 budget allocation.
At the hearing, lawmakers queried several expenditures contained in the commission’s financial report, including an alleged N153 million spent on renting a one-room liaison office in Abuja despite the commission’s headquarters being located in Enugu.
The committee also expressed concern over what it described as an implied expenditure of about N2.5 billion reflected in the financial records submitted by the commission.
The scrutiny followed the committee’s review of documents submitted by the SEDC as part of the National Assembly’s oversight responsibilities.
Committee members voiced dissatisfaction with the financial report and insisted that the commission provide a detailed breakdown of how funds released to it had been spent.
Speaking during the session, Senator Kalu disclosed that available records showed the commission received N16.6 billion in December 2025, but currently had approximately N13 billion remaining in its account.
According to him, the development indicated that about N3.6 billion had been expended and required full explanation.
“This committee is disappointed with the financial report presented. It is completely unacceptable,” Kalu said.
Other members of the committee, including Senators Enyinnaya Abaribe, Victor Umeh and Austin Akobundu, also raised concerns over the financial statements submitted by the commission.
Responding, Okoye defended the commission’s spending decisions, maintaining that all expenditures were made prudently and in line with available resources.
He explained that the commission had adopted a policy of tying projects and procurement activities to actual cash releases rather than relying solely on budgetary allocations.
“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 warned that awarding contracts based solely on budget provisions without corresponding cash releases could create unfunded liabilities and future financial challenges.
“For example, 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 added.
Despite the explanation, the committee remained unsatisfied and directed the commission to submit comprehensive records of all expenditures, including contract documents, payment schedules and supporting evidence, on or before June 23.
Kalu said the committee would thoroughly review the documents before determining a date for the commission’s next appearance.
“By June 23, we expect to receive the complete documentation. Once we have reviewed the records, we will determine the date for your next appearance before the committee,” he stated.
The hearing was subsequently adjourned, with the committee reiterating its expectation that all requested documents would be submitted within the stipulated timeframe for further legislative scrutiny.