Senate quizzes SEDC MD over alleged mismanagement of N16.6bn 2025 budget release

The Senate, through its Committee on the South East Development Commission (SEDC), on Tuesday questioned Mark Okoye, Managing Director of the commission, over the alleged mismanagement of N16.6 billion received from the 2025 budget allocation.

The committee, chaired by Orji Uzor Kalu, senator representing Abia North, raised concerns over N153 million reportedly spent on renting a one-room liaison office in Abuja, as well as N2.5 billion listed as “implied expenditure.”

The scrutiny followed an investigative hearing during which the committee reviewed the commission’s financial report and expenditure records.

Members of the committee expressed dissatisfaction with the commission’s explanations regarding the utilisation of funds released so far.

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They vowed to ensure full accountability for all expenditures made from the allocation.

Kalu said information obtained by the committee from the Central Bank of Nigeria indicated that only N13 billion remained from the N16.6 billion released to the commission in December last year, suggesting that about N3.6 billion had already been spent.

According to him, the expenditure must be fully accounted for.

“This committee is disappointed with the financial report given, which is completely unacceptable,” he said.

Other committee members, including Enyinnaya Abaribe, senator representing Abia South; Victor Umeh, senator representing Anambra Central; and Austin Akobundu, senator representing Abia Central, also expressed displeasure over the report submitted by the commission.

In his defence, Okoye maintained that all expenditures made from the funds received were properly executed and directed towards priority projects.

“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.

“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.”

However, the committee was not satisfied with the explanation.

Consequently, through its chairman, the committee directed the commission to submit comprehensive records, including contract documents, payment details, and all supporting evidence, 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,” he said.

Kalu subsequently adjourned the hearing, reiterating the committee’s expectation that all requested documents would be submitted within the stipulated timeframe.