Senate Committee Demands Detailed Financial Records from SEDC
By Enekwemba Mark Chikamso
E-ISSN: 2354-4481
The Managing Director and Chief Executive Officer of the South East Development Commission (SEDC), Mark Okoye, on Tuesday defended the Commission's financial management before the Senate Committee on the South East Development Commission during an investigative oversight session held in Abuja.
The Committee, chaired by Senator Orji Uzor Kalu, expressed reservations over aspects of the Commission's financial report, particularly a N153 million expenditure on an Abuja liaison office and N2.5 billion recorded as "implied expenditure."
The oversight hearing formed part of the Senate's constitutional responsibility to examine the utilisation of funds released to the Commission under the 2025 budget and evaluate the implementation of its programmes and projects across the South-East.
Lawmakers raised concerns over what they described as inconsistencies and insufficient explanations in the financial records presented by the Commission, especially regarding the utilisation of the N16.6 billion released by the Federal Government.
Members of the Committee noted that available records suggested approximately N3.6 billion had already been expended and requested a comprehensive breakdown of the spending.
Addressing the Commission's management, Senator Kalu described the financial report as inadequate and below the Committee's expectations.
"This committee is disappointed with the financial report given, which is completely unacceptable," Kalu stated.
The former Abia State governor further disclosed that information obtained from the Central Bank of Nigeria indicated that about N13 billion remained in the Commission's accounts from the N16.6 billion received in December, making it necessary for the management to provide detailed explanations on the expenditure already incurred.
"We are not satisfied with your job. This is not a job that somebody who claims to be an expert like you should be doing. I am very disappointed and this committee is equally disappointed," he added.
Following the observations, the Committee directed the SEDC management to return with more comprehensive financial documentation and supporting records.
Other members of the Committee, including Senators Enyinnaya Abaribe, Victor Umeh, and Austin Akobundu, also questioned elements of the Commission's accounting framework and financial presentation.
Senator Abaribe specifically pointed to apparent inconsistencies in the report, particularly concerning budget performance and expenditure figures.
Responding to the concerns, SEDC Managing Director Mark Okoye reaffirmed the Commission's commitment to transparency, fiscal discipline, and accountability, noting that the agency remains in the process of establishing its operational structures as a newly created institution.
According to him, the Commission had previously requested additional time to compile and organise the extensive documentation requested by the Senate Committee.
"The first thing I said when I mounted the podium to address the Senate Committee on SEDC is that everything surrounding the meeting is in line with their statutory function, and we always commend them for exercising that oversight responsibility," he said.
Okoye explained that the Commission is simultaneously building administrative systems, recruiting personnel, and implementing development programmes aimed at addressing the expectations of people across the South-East.
"We are trying to build a brand-new institution. We are putting in place the systems and departments required for effective operations while also delivering programmes and projects because the people of the South-East are eager to see development," he stated.
Addressing questions on the N153 million liaison office expenditure, Okoye explained that the Commission deliberately avoided leasing multiple office spaces that could become unnecessary once its permanent headquarters is ready.
He disclosed that a permanent office facility provided by the Enugu State Government is currently undergoing renovation and is expected to be ready for occupation by August.
According to him, renting large office spaces while preparing a permanent headquarters would amount to an inefficient use of public funds.
"We don't want to expend hard-earned public resources on two assets at the same time," he said.
He added that the Commission's gradual recruitment process is also linked to the availability of adequate office facilities, which would ensure effective supervision and accountability of staff.
On the N2.5 billion classified as "implied expenditure," Okoye clarified that the amount represents budgetary provisions reserved for priority projects pending the completion of procurement processes and contract awards.
He explained that the approach is intended to prevent the Commission from awarding contracts without guaranteed funding.
"What we don't want to do is create a situation where you award contracts and you cannot pay," he explained.
The SEDC boss further stated that the Commission is complying with fiscal guidelines issued by the Federal Ministry of Finance and the Federal Ministry of Regional Development to avoid creating unfunded liabilities for future administrations.
He assured the lawmakers that all requested financial records and supporting documents would be submitted within two weeks.
"We will provide all the documentation for them," he said.
The hearing followed an earlier summons by the Committee requesting comprehensive details of all projects, programmes, interventions, and contracts executed by the Commission, including their locations, procurement procedures, costs, and implementation status.
Lawmakers also requested records relating to local and international trips, conferences, workshops, retreats, and stakeholder engagements involving members of the board, management, and staff.
The Committee maintained that the investigation is aimed at strengthening transparency, accountability, and prudent management of public resources allocated to the South East Development Commission.
As the oversight exercise continues, senators insist that important questions remain regarding the Commission's expenditure profile, while the SEDC management maintains that its financial decisions were guided by fiscal prudence and that comprehensive documentation will be presented at the Committee's next sitting.
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