In just 16 months of its inauguration, the management of the South East Development Commission (SEDC) has come under fire at the Senate over the alleged misuse of the N16.6 billion cited for the agency in the 2025 budget.

The Senate Committee on SEDC, chaired by Senator Orji Uzor Kalu, on Tuesday queried some expenditure recorded by the agency, which it said was not justifiable.

One of them is the claim by the commission that it rented a one-room liaison office in Abuja for N153 million, and another expenditure of N2.5 billion the agency categorised as ‘implied expenditure’.

The committee raised the issues as it reviewed the financial report of the SEDC during a session with the Managing Director, Mark Okoye, and other directors at the National Assembly.

Senators were unsatisfied with the responses of the team as they sounded unconvincing.

For instance, Kalu informed Okoye that the Central Bank of Nigeria’s (CBN’s) record showed that N13bn was the balance left from the N16.6bn the SEDC received in 2025, an indication that N3.6bn had been spent by the agency and must be accounted for properly.

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

Senators Enyinnaya Abaribe (Abia South), Victor Umeh (Anambra Central) and Austin Akobundu (Abia Central), all members of the committee, berated the agency for presenting an unconvincing financial report.

But Okoye argued with the lawmakers, insisting that no money was mismanaged by his team since he assumed office.

“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,” the MD said.

“For example, having a budget of N140bn does not automatically mean that N140bn in cash is available.

“It would be irresponsible to award contracts worth the entire budget if only N10bn or N20bn has actually been released. Doing so would create unfunded liabilities and a significant financial deficit.”

However, the committee directed the agency to produce a detailed report by June 23, fully accounting for its expenditure.

Kalu said, “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.” (Nigerian Tribune)