By Abbanobi -Eku Onyeka
The Senate on Tuesday, through its Committee on South East Development Commission, SEDC, took up the Managing Director of the Commission, Mark Okoye, over suspected mismanagement of N16.6 billion received from 2025 budget allocations.
The committee chaired by Senator Orji Uzor Kalu, Abia North, specifically frowned at N153 million the commission claimed it spent to rent one room liaison office in Abuja and N2.5 billion categorised as “implied expenditure”.
Trouble came the way of the MD and other top management staff of the commission when the committee went through the financial report submitted to it during an investigative hearing it had with them.
Irked by the failure of the MD to account for expenditures made so far from the N16.6 billion received from the federal budget, members of the committee and the chairman expressed disappointment and vowed to make him account for what has been expended.
Senator Orji Uzor Kalu in particular told the embattled MD that from inquisition made by the committee, the Central Bank of Nigeria had informed it that N13 billion is what is left from the N16.6 billion SEDC collected in December last year, meaning that N3.6 billion has been spent and must be accounted for.
“This committee is disappointed with the financial report given, which is completely unacceptable,” he said.
Other members of the committee like Senator Enyinnaya Abaribe, Abia South; Victor Umeh, Anambra Central; Austin Akobundu, Abia Central, expressed displeasure over the report presented.
However, the SEDC MD in his defence said expenditures carried out so far from money received were 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,” Okoye said.
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,” he added.
“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,” the MD explained.
Not satisfied with his explanation, the committee through its Chairman consequently directed the commission to submit comprehensive records, including contract details, payment information, and all supporting documents latest by 23rd of this month.
“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.
