The Senate has raised concerns over the financial management of the South East Development Commission, putting its Managing Director and Chief Executive Officer, Mark Okoye, under scrutiny over how funds from the 2025 budget are being utilised.
The issue came up during an investigative session of the Senate Committee on South East Development Commission, chaired by Senator Orji Uzor Kalu, where lawmakers examined how part of the N16.6 billion released to the commission was spent.
During the hearing, members of the committee questioned several items in the expenditure report presented by the commission. One of the major concerns was an alleged N153 million spent on renting a one room liaison office in Abuja, even though the commission’s headquarters is located in Enugu.
Lawmakers also expressed concern over what they described as an implied expenditure of about N2.5 billion, which appeared in the financial records submitted for review. The committee said the figures required proper clarification and supporting documentation.
Senator Kalu noted that available records showed the commission received N16.6 billion in December last year, with about N13 billion reportedly remaining. He explained that this meant roughly N3.6 billion had already been spent and must be properly accounted for.
He described the financial presentation as unsatisfactory, stating that the committee was not impressed with the report submitted by the commission.
Other members of the committee, including Senators Enyinnaya Abaribe, Victor Umeh, and Austin Akobundu, also raised similar concerns, insisting that the financial breakdown provided did not offer enough clarity on how public funds had been managed.
In his defence, the Managing Director of the commission, Mark Okoye, said all expenditures were carried out prudently and in line with available cash releases. He explained that the commission operates on a system that prioritises actual funds received rather than budgeted figures.
According to him, the approach ensures that projects and procurement processes are based on realistic funding, rather than assumptions tied to full budget provisions.
He further argued that awarding contracts based on the total budget figure without considering actual cash releases could create financial strain and lead to unpaid obligations.
Despite this explanation, the committee maintained its dissatisfaction and directed the commission to submit full details of its expenditures, including contract documents, payment records, and other supporting evidence, on or before June 23.
Senator Kalu stated that the committee would review the submitted documents before fixing a new date for the commission to reappear for further clarification.
The session was thereafter adjourned, with lawmakers insisting that all requested records must be provided within the stipulated timeframe for proper legislative oversight.
