By Chibuike Nwabuko
ABUJA (PRECISE POST) – The Senate Committee on the South East Development Commission (SEDC) has questioned aspects of the Commission’s financial management, raising concerns over expenditure records and directing its management to submit comprehensive documentation by June 23.
The committee, chaired by Senator Orji Uzor Kalu, expressed dissatisfaction with the financial report presented by the Managing Director of the Commission, Mr. Mark Okoye, during an oversight session at the National Assembly on Tuesday.
Lawmakers specifically queried claims that the Commission spent N153 million on a one-room liaison office in Abuja and recorded N2.5 billion as “implied expenditure” in its financial statements. Members of the committee demanded detailed explanations and supporting documents to justify the expenditures.
Citing records obtained from the Central Bank of Nigeria (CBN), Kalu disclosed that about N13 billion remained from the N16.6 billion allocated to the Commission in 2025, indicating that roughly N3.6 billion had already been spent and must be fully accounted for.
“This committee is disappointed with the financial report given, which is completely unacceptable,” Kalu said.
Other committee members, including Senators Enyinnaya Abaribe, Victor Umeh and Austin Akobundu, also faulted the presentation, describing the explanations provided by the Commission as inadequate and unconvincing.
Defending the Commission’s financial operations, Okoye insisted that no funds had been mismanaged since the agency was established. He said the Commission had adopted a prudent approach to spending while simultaneously setting up its administrative structure, operational systems and development programmes for the South-East region.
According to him, the Commission deliberately aligns project execution with actual fund releases to avoid awarding contracts without the financial capacity to complete them.
“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,” Okoye said.
He added that awarding contracts based solely on budgetary provisions without corresponding cash releases would be fiscally irresponsible.
Addressing concerns over office accommodation, the SEDC boss explained that the Commission’s permanent office was currently undergoing renovation and is expected to be completed by August. He argued that renting larger temporary office spaces before the completion of the permanent facility would amount to unnecessary expenditure of public funds.
Okoye also disclosed that recruitment into the Commission had been delayed to ensure that adequate office infrastructure was in place before staff were engaged, a move he said would enhance supervision, accountability and productivity.
On the controversial N2.5 billion “implied expenditure” entry, he explained that the classification was designed to tie project allocations to available funding and procurement processes, thereby preventing the accumulation of unfunded liabilities.
He noted that the Commission’s financial management framework was consistent with fiscal discipline guidelines from the Federal Ministry of Finance and the Federal Ministry of Regional Development.
Despite the explanations, the committee insisted on a detailed breakdown of all expenditures and ordered the Commission to return with complete documentation by 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 stated.
The scrutiny represents the first major oversight review of the South East Development Commission since its inauguration, with lawmakers emphasizing the need for transparency and accountability in the management of public funds allocated to the agency.
