A Senate committee has challenged the management of the South East Development Commission over the utilisation of its N16.6 billion 2025 budget, questioning several expenditure items and demanding full documentation of how public funds were spent.
The confrontation occurred on Tuesday during an investigative hearing chaired by Senator Orji Kalu, who said the financial records submitted by the commission raised serious concerns about transparency and compliance with budgetary provisions.
Lawmakers specifically questioned a N153 million expenditure for an Abuja liaison office and another N2.5 billion categorised as “implied expenditure,” insisting that both items required clearer justification and supporting records.
Kalu said the committee’s review of available financial data suggested that about N3.6 billion had been spent from the N16.6 billion released to the commission.
“This committee is disappointed with the financial report given, which is completely unacceptable,” he said.
He further criticised the cost of the Abuja office.
“You have one little office here in Abuja. And you pay N153 million… one room! This committee knows,” he said
Other senators on the committee, including Enyinnaya Abaribe, Victor Umeh, and Austin Akobundu, also raised concerns over inconsistencies in the expenditure breakdown and demanded further clarification from the commission’s management.
The Managing Director of the commission, Mark Okoye, defended the spending, arguing that the financial approach was guided by project planning realities and the need to avoid contractual commitments without adequate cash backing.
“Our approach has been to ensure that available resources are directed towards priority projects,” Okoye said
We want to avoid 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 without proper funding clarity.”
He maintained that expenditures were tied to institutional development, project preparation, and operational requirements necessary for the commission’s mandate.
The committee, however, rejected the explanation and directed the commission to return with detailed documentation covering all spending items.
By the 23rd, we want to have the complete documentation,” Kalu said. “We are not satisfied with what has been presented.”
In a post-hearing clarification, the commission explained that the N153 million Abuja office cost relates to the establishment and operation of its liaison office located at the Congress Building, 70 Mississippi Street, Maitama, Abuja.
It said the office occupies multiple sections of the building under a lease agreement, and the amount covers rent, utilities, operational costs, and fit-out works from February 2025 to date.
The commission also clarified that the N2.5 billion listed as “implied expenditure” refers to a contract awarded for the rehabilitation of its headquarters in Enugu State.
According to the agency, the funds have not yet been disbursed
To be precise: this money has not left the Commission’s accounts,” the statement said.
The commission added that all procurement processes were carried out in line with the Public Procurement Act, and that full documentation—including contract details, payment schedules, and supporting records—would be submitted to the Senate committee before the deadline.
The committee adjourned proceedings and warned that failure to provide adequate records could lead to further legislative scrutiny of the commission’s financial management.
