James Adamu
The Senate Committee on the South East Development Commission (SEDC) on Tuesday grilled the Managing Director of the Commission, Mark Okoye, over the alleged mismanagement of N16.6 billion received from the 2025 budgetary allocations.
The committee, chaired by Senator Orji Uzor Kalu (Abia North), specifically queried the N153 million the commission claimed it spent on renting a one-room liaison office in Abuja, as well as N2.5 billion listed as “implied expenditure”.
Trouble began for the MD and other top management staff when the committee examined the financial report submitted during an investigative hearing at the National Assembly complex in Abuja .
Members of the committee, including Senators Enyinnaya Abaribe (Abia South), Victor Umeh (Anambra Central), and Austin Akobundu (Abia Central), expressed strong displeasure with the report, describing key components as inadequate and lacking transparency .
Senator Kalu informed Okoye that information obtained by the committee from the Central Bank of Nigeria (CBN) indicated that only N13 billion remained from the N16.6 billion released to the commission in December last year . This revelation suggests that approximately N3.6 billion has already been spent and must be properly accounted for.
“This committee is disappointed with the financial report given, which is completely unacceptable,” Kalu stated emphatically .
MD Okoye’s Defense
In his defense before the lawmakers, Okoye insisted that all expenditures carried out so far were judiciously managed . He provided a detailed explanation of the commission’s financial approach, emphasizing prudent management of available resources.
“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 told the committee .
He further explained the commission’s cautious stance on contract awards, stating: “What we want to avoid is a situation where contracts are awarded without the financial capacity to execute them. 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. Doing so would create unfunded liabilities and a significant financial deficit,” he added .
Committee Rejects Explanation, Orders Full Disclosure
Despite Okoye’s detailed defense, the committee remained unconvinced, insisting that the explanations did not adequately address the concerns raised in the financial submissions .
Consequently, the committee directed the commission to submit comprehensive records, including detailed contract breakdowns, payment schedules, and all supporting financial documents .
“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,” Senator Kalu ordered .
The chairman then adjourned the session, reiterating the committee’s expectation that all requested information must be submitted within the stipulated timeframe. He warned that further action would depend on the documents submitted by the commission .
Background
The SEDC was established to drive infrastructure development and economic recovery in Nigeria’s South East region. The N16.6 billion under scrutiny represents part of the commission’s 2025 budget allocation .
The investigative hearing is part of the Senate’s broader oversight function to ensure accountability in the utilization of public funds by government agencies .
The committee has given the SEDC management until June 23, 2026, to submit all requested documentation before determining the next course of action .
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