The Senate Committee on the South East Development Commission (SEDC) on Tuesday issued a June 23 deadline to the commission's management to provide detailed records of its expenditure, following concerns over the utilisation of funds released to the agency.
The committee, led by Senator Orji Uzor Kalu, raised questions over claims that the commission spent N153 million on the rental of a one-room liaison office in Abuja and also sought clarification on N2.5 billion listed as "implied expenditure" in its financial records.
The lawmakers expressed dissatisfaction with the financial report presented by the commission's Managing Director, Mark Okoye, during an oversight session at the National Assembly.
According to the committee, records obtained from the Central Bank of Nigeria (CBN) indicated that N16.6 billion was released to the commission in December 2025, with approximately N13 billion still remaining in its accounts. The lawmakers noted that this suggested that about N3.6 billion had been spent and required proper explanation.
Kalu said the committee found the financial report inadequate and lacking sufficient details to justify the expenditures already made.
"This committee is disappointed with the financial report given, which is completely unacceptable," the former Abia State governor declared.
Other members of the committee, including Senators Enyinnaya Abaribe, Victor Umeh and Austin Akobundu, also questioned the spending profile and demanded comprehensive documentation to support the commission's claims.
The lawmakers maintained that public funds must be transparently managed and insisted that every expenditure should be backed by verifiable records.
Responding to the concerns, Okoye defended the commission's financial management approach, saying expenditures had been guided by available resources and priority projects.
He explained that the commission was committed to ensuring that contracts were only awarded when there was adequate funding to execute them.
"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," he said.
Okoye stressed that the commission was taking measures to avoid creating liabilities through the award of contracts without corresponding releases from government.
"What we want to avoid is a situation where contracts are awarded without the financial capacity to execute them," he added.
The SEDC chief further noted that budgetary provisions should not be mistaken for cash availability, arguing that it would be financially reckless to commit the agency to projects beyond the funds already released.
"Having a budget allocation does not mean the entire amount is available in cash. Awarding contracts far beyond available funds would create unfunded liabilities and serious financial challenges," he said.
However, the explanations failed to satisfy members of the committee, who insisted that the financial report lacked the necessary details and documentary evidence required for legislative scrutiny.
The committee subsequently directed the commission to submit detailed records of all contracts awarded, payments made and other supporting financial documents on or before June 23.
Kalu warned that the commission would be required to appear before the committee again after lawmakers review the documents.
"By June 23, we expect complete documentation. After examining the records, the committee will decide on the next date for your appearance," he said.
The session ended with the committee reiterating its commitment to ensuring accountability and transparency in the management of funds allocated to the South East Development Commission.
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