The Senate Committee on the South East Development Commission (SEDC) on Tuesday questioned the commission’s management over the utilisation of its ₦16.6 billion budgetary allocation, demanding comprehensive documentation to justify several expenditure items flagged during an oversight session in Abuja.
The hearing, chaired by Senator Orji Kalu, representing Abia North Senatorial District, became tense as lawmakers challenged aspects of the commission’s financial report, particularly the expenditure of ₦153 million on an Abuja liaison office and a controversial ₦2.5 billion item classified as “implied expenditure.”
Members of the committee expressed dissatisfaction with the financial submissions presented by the commission, insisting that the expenditure details lacked sufficient clarity and supporting documentation.
Senator Kalu noted that records available to the committee indicated that only about ₦13 billion remained from the ₦16.6 billion released to the commission in December 2025, suggesting that approximately ₦3.6 billion had already been spent.
“This committee is disappointed with the financial report given, which is completely unacceptable,” Kalu said.
He also questioned the cost of maintaining the commission’s Abuja office, describing the amount spent as excessive.
“You have one little office here in Abuja. And you pay ₦153 million, one room! This committee knows,” he said.
Other lawmakers, including Senators Enyinnaya Abaribe, Victor Umeh, and Austin Akobundu, joined in scrutinising the commission’s spending profile, calling for greater transparency on procurement procedures and expenditure approvals.
The committee subsequently directed the commission to submit all relevant procurement records, contract documents, and payment schedules before its next appearance.
“By the 23rd, we want to have the complete documentation,” Kalu directed. “Once we receive and review the documents, we will determine the date for your next appearance before the committee.”
Responding to the concerns, Managing Director of the SEDC, Mark Okoye, defended the agency’s financial management strategy, maintaining that all expenditures were executed within the provisions of the law and established procurement guidelines.
According to him, the commission adopts a cautious approach to contract awards by aligning procurement activities with actual cash releases rather than approved budget figures.
“Our approach has been to ensure that available resources are directed towards priority projects,” Okoye said.
He explained that budgetary allocations do not automatically translate into available cash and warned against committing government resources beyond actual releases.
“For example, having a budget of ₦140 billion does not automatically mean that ₦140 billion in cash is available,” he stated. “It would be irresponsible to award contracts worth the entire budget if only ₦10 billion or ₦20 billion has actually been released.”
Following the hearing, the commission issued a statement clarifying the disputed expenditure items.
The SEDC explained that the ₦153 million spent on its Abuja liaison office covered rent, utilities, operational expenses, and office fit-out works at its facility located within the Congress Building, 70 Mississippi Street, Maitama, from February 2025 to date.
The commission also clarified that the ₦2.5 billion listed as “implied expenditure” relates to a contract approved for the rehabilitation of its headquarters in Enugu under the provisions of the Public Procurement Act.
According to the agency, the amount has not yet been disbursed.
“To be precise: this money has not left the Commission’s accounts,” the statement said.
The commission further stated that funds already utilised were channelled towards institutional development, project preparation, stakeholder engagement activities, and regional development programmes across the South-East.
SEDC assured lawmakers that all requested records would be submitted before June 23 and reaffirmed its commitment to transparency, accountability, and cooperation with legislative oversight processes
