Senate queries SEDC MD over alleged mismanagement of N16.6bn

The Senate Committee on the South East Development Commission (SEDC) on Tuesday took the Managing Director of the Commission, Mark Okoye, to task over the alleged mismanagement of N16.6 billion received from the 2025 budget allocation.

The committee, chaired by Senator Orji Uzor Kalu (Abia North), specifically frowned at N153 million the commission claimed it spent to rent a one-room liaison office in Abuja and N2.5 billion categorised as “implied expenditure.”

Trouble came for the MD and other top management staff when the committee reviewed the financial report submitted during an investigative hearing.

Irked by the MD’s failure to account for expenditures from the N16.6 billion received so far from the federal budget, committee members expressed disappointment and vowed to make him account for the funds expended.

Senator Kalu told the embattled MD that, based on information from the Central Bank of Nigeria, N13 billion remained from the N16.6 billion the SEDC collected in December last year, meaning N3.6 billion had been spent and must be accounted for.

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

Other members, including Senators Enyinnaya Abaribe (Abia South), Victor Umeh (Anambra Central), and Austin Akobundu (Abia Central), also expressed displeasure with the report presented.

In his defence, the SEDC MD said expenditures carried out so far had been judiciously made.

“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 said.

Not satisfied with his explanation, the committee, through its chairman, directed the commission to submit comprehensive records, including contract details, payment information, and all supporting documents, no later than September 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 said.

The chairman thereafter adjourned the session, reiterating the committee’s expectation that all requested information would be submitted within the stipulated timeframe.

Senate queries SEDC MD over alleged mismanagement of N16.6bn