The Senate Committee on the Southeast Development Commission (SEDC) has questioned the Managing Director of the Commission, Mark Okoye, over allegations of mismanagement of ₦16.6 billion received from the 2025 federal budget allocation.
The committee, chaired by Senator Orji Uzor Kalu (Abia North), raised concerns during an investigative hearing on Tuesday, particularly over reported expenditures including ₦153 million allegedly spent on renting a one-room liaison office in Abuja and another ₦2.5 billion classified as implied expenditure.
Lawmakers expressed dissatisfaction after reviewing the financial report submitted by the Commission, saying it failed to adequately account for the funds received.
Senator Kalu, citing information from the Central Bank of Nigeria, stated that about ₦13 billion remained out of the ₦16.6 billion disbursed, indicating that approximately ₦3.6 billion had already been spent and must be properly accounted for.
“This committee is disappointed with the financial report given, which is completely unacceptable,” Kalu said.
Other committee members, including Senators Enyinnaya Abaribe (Abia South), Victor Umeh (Anambra Central), and Austin Akobundu (Abia Central), also criticised the report and demanded clearer explanations.
In his defence, the SEDC Managing Director explained that the expenditures were guided by prudent financial planning and the need to avoid unfunded liabilities.
He argued that budgetary provisions do not always translate directly into cash releases, noting that project implementation must align with actual funds available.
“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 said.
However, the committee rejected the explanation and directed the Commission to submit comprehensive documentation, including contract details, payment records, and supporting financial documents, on or before September 23.
Senator Kalu added that the committee would reconvene after reviewing the submitted documents to determine the next line of action.
The session was subsequently adjourned, with lawmakers insisting on full accountability for all funds released to the Commission.
