The Senate, on Tuesday, through its Committee on the South-East Development Commission (SEDC), took up the Managing Director of the interventionist Commission, Mark Okoye, over the suspected mismanagement of N16.6 billion received from the agency’s 2025 budget allocations.
The committee, chaired by Senator Orji Uzor Kalu (Abia North), specifically frowned at the 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 the way of the MD and other top management staff of the commission when the committee examined the financial report submitted to it during an investigative hearing.
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 Senate committee, including the chairman, expressed disappointment and vowed to ensure that he accounted for the funds expended.
Senator Kalu, in particular, told the embattled MD that inquiries made by the committee revealed that the Central Bank of Nigeria (CBN) had informed it that N13 billion remained from the N16.6 billion the SEDC collected in December last year, meaning that 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 of the committee, including Senator Enyinnaya Abaribe (Abia South), Senator Victor Umeh (Anambra Central), and Senator Austin Akobundu (Abia Central), also expressed displeasure with the report presented.
However, the SEDC MD, in his defence, said expenditures carried out so far from the money received 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.”
Not satisfied with his explanation, the legislative committee, through its chairman, consequently directed the commission to submit comprehensive records, including contract details, payment information, and all supporting documents no later than the 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,” he said.
The Senate Committee chairman, thereafter, adjourned the session, reiterating the committee’s expectation that all requested information would be submitted within the stipulated timeframe.
