Fresh controversy as Senate probes SEDC expenditure, demands transparency

Tension erupted at a Senate investigative hearing on Tuesday as members of the Senate Committee on the South East Development Commission (SEDC) challenged the management of the commission over the utilisation of N16.6 billion released to the agency, raising questions about several expenditure items and demanding comprehensive financial documentation.

The confrontation occurred during an oversight session chaired by Senator Orji Uzor Kalu, where lawmakers scrutinised the commission’s financial records and expenditure reports submitted by the Managing Director of the SEDC, Mark Okoye, and other senior officials.

The committee expressed dissatisfaction with aspects of the commission’s financial disclosures, particularly an expenditure of N153 million on an Abuja liaison office and a N2.5 billion item listed as “implied expenditure.”

According to Kalu, records available to the committee showed that of the N16.6 billion released to the commission in December 2025, only about N13 billion remained in its accounts, suggesting that approximately N3.6 billion had already been spent.

“This committee is disappointed with the financial report given, which is completely unacceptable,” Kalu said during the hearing. You have one little office here in Abuja, and you pay N153 million. One room! This committee knows.”

Several other lawmakers also questioned the commission’s spending pattern and called for greater transparency.

Among them were Senator Enyinnaya Abaribe, Senator Victor Umeh and Senator Austin Akobundu, who demanded detailed explanations for some of the expenditure items contained in the report.

Responding to the concerns, Okoye maintained that all expenditures undertaken by the commission were lawful, properly approved and focused on institutional development and critical regional projects.

He explained that the commission had adopted a cautious financial management strategy designed to ensure that contracts awarded are backed by actual cash releases rather than budgetary projections.

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“Our approach has been to ensure that available resources are directed towards priority projects,” Okoye said.

“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.”

According to him, such an approach would create unfunded liabilities and expose the commission to significant financial risks.

However, members of the committee were not satisfied with the explanations and directed the commission to provide complete documentation supporting all expenditures.

Kalu subsequently gave the agency until June 23 to submit detailed records, including procurement documents, payment schedules, contracts and other financial evidence.

“By the 23rd, we want to have the complete documentation,” he said.

“Once we receive and review the documents, we will determine the date for your next appearance before the committee.”

In a statement issued shortly after the hearing, the SEDC sought to clarify some of the expenditure items that came under scrutiny.

The commission explained that the N153 million expenditure was not solely rent for an office space, as suggested during the hearing, but represented the total cost of establishing and operating its Abuja liaison office located at Congress Building, 70 Mississippi Street, Maitama.

According to the agency, it occupies the basement, ground floor and boardroom facilities within the building under a duly executed lease agreement.

The commission stated that the amount covered rent, operational expenses, utility services and office fit-out works from February 2025 to date.

The commission further stated that funds spent so far had been dedicated to project planning and development, institutional establishment, stakeholder engagements and regional development initiatives across the South-East region.