….demands full account of expenditure
…all expenditures was made prudently and in line with available resources – Okoye defends commission
By Henry Umoru
ABUJA — The Senate has placed the Managing Director and Chief Executive Officer of the South East Development Commission, Mark Okoye, under scrutiny over the management of funds released to the commission from its 2025 budget allocation.
The Senate Committee on South East Development Commission, chaired by Orji Uzor Kalu, raised concerns during an investigative hearing over expenditures made from the N16.6 billion released to the commission.
During the session, lawmakers questioned the expenditure profile presented by the commission, including an alleged N153 million spent on renting a one-room liaison office in Abuja despite the commission’s corporate headquarters being located in Enugu.
The committee also raised concerns over what it described as N2.5 billion in implied expenditure contained in the commission’s financial report.
The scrutiny followed a review of financial records submitted by the commission to the committee as part of its oversight responsibilities.
Members of the committee expressed dissatisfaction with the report, insisting that the commission must provide a detailed account of how funds released so far had been spent.
Speaking during the hearing, Kalu said information available to the committee indicated that the commission had received N16.6 billion in December last year and that only about N13 billion remained in its account.
According to him, this suggests that approximately N3.6 billion had been expended and must be fully accounted for.
“This committee is disappointed with the financial report presented. It is completely unacceptable,” Kalu said.
Other committee members, including Senators Enyinnaya Abaribe, Victor Umeh and Austin Akobundu, also expressed concerns over the report submitted by the commission.
Responding to the allegations, Okoye defended the commission’s spending decisions, stating that all expenditures had been made prudently and in line with available resources.
He explained that the commission’s strategy was to ensure that projects and procurement activities were tied to actual releases rather than budgetary allocations alone.
“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 added that awarding contracts based solely on budget provisions without corresponding cash releases could create unfunded liabilities and financial challenges.
“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,” he said.
However, the committee was not satisfied with the explanation and subsequently directed the commission to submit comprehensive records of its expenditures, including contract details, payment records and all supporting documents, on or before June 23.
Kalu said the committee would review the documents and determine a date for the commission’s next appearance.
“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 hearing was thereafter adjourned, with the committee reiterating its expectation that all requested documents would be submitted within the stipulated timeframe.