Senate queries SEDC chief over alleged N16.6bn mismanagement

By Haruna Salami and Musa Baba Adamu

The Senate on Tuesday questioned the Managing Director of the South East Development Commission (SEDC), Commission, Mr. Mark Okoye, over alleged mismanagement of N16.6 billion received from the 2025 budget allocations.
Chairman of the committee, Senator Orji Uzor Kalu (Abia North), expressed concern over several expenditures, including N153 million reportedly spent on renting a one-room liaison office in Abuja and N2.5 billion listed as implied expenditure.
The scrutiny arose during an investigative hearing where the committee examined the financial report submitted by the Commission’s management.
Committee members were dissatisfied with the Managing Director’s inability to provide satisfactory explanations for expenditures made from the N16.6 billion received from federal budget allocations. They vowed to ensure full accountability for all funds spent.
Senator Kalu, in particular, informed the Managing Director that 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 N3.6 billion had already been spent and must be properly accounted for.
“This committee is disappointed with the financial report presented. It is completely unacceptable,” Kalu stated.
Other committee members, including Senators Enyinnaya Abaribe (Abia South), Victor Umeh (Anambra Central), and Austin Akobundu (Abia Central), also expressed dissatisfaction with the report submitted by the Commission.
In his defence, Okoye maintained that all expenditures made from the funds received were properly and prudently executed.
“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.
“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 convinced by his explanations. Consequently, through its chairman, it directed the Commission to submit comprehensive records, including contract details, payment schedules, and all supporting documents, on or before the 23rd of this month.
“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 said.
The chairman subsequently adjourned the session, reiterating the committee’s expectation that all requested documents would be submitted within the stipulated timeframe.