Legislature
Senate Orders SEDC MD to give Proper Account of N16.6 Billion Received from 2025 Budget
By Ugbede James Ankpa
The Senate Committee on the South East Development Commission (SEDC), has questioned the Managing Director of the Commission, Mark Okoye, over alleged mismanagement of the N16.
The committee, chaired by Senator Orji Uzor Kalu (Abia North), expressed concern over N153 million reportedly spent on renting a one-room liaison office in Abuja, as well as N2.
The scrutiny intensified when the committee reviewed the financial report submitted by the commission during an investigative hearing.
Members of the committee, including the chairman, were displeased with the Managing Director’s inability to provide a satisfactory account of expenditures made from the N16.6 billion received from the federal budget. They vowed to ensure that every amount spent is properly accounted for.
Senator Orji Uzor Kalu specifically informed the commission’s management that findings made by the committee indicated that the Central Bank of Nigeria reported that only N13 billion remained from the N16.6 billion received by the SEDC in December last year, suggesting that N3.6 billion had already been spent and must be fully accounted for.
“This committee is disappointed with the financial report given, which is completely unacceptable,” Kalu said.
Other members of the committee, including Senator Enyinnaya Abaribe (Abia South), Senator Victor Umeh (Anambra Central), and Senator Austin Akobundu (Abia Central), also expressed dissatisfaction with the report presented by the commission.
In his defence, the SEDC Managing Director maintained that all expenditures made from the funds received were judiciously undertaken.
“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,” he explained.
Not satisfied with the explanation, the committee, through its chairman, directed the commission to submit comprehensive records, including contract details, payment information, and all supporting documents, 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,” Kalu stated.
The chairman subsequently adjourned the session and reiterated the committee’s expectation that all requested documents would be submitted within the stipulated timeframe.
