By George Ozalla
The Senate Committee on the South East Development Commission (SEDC) has given the Managing Director of the commission, Mark Okoye, until June 23 to provide detailed records of how funds released to the agency have been utilised, following what lawmakers described as unsatisfactory explanations on expenditure made so far.
The directive was issued during a tense oversight session at the National Assembly on Tuesday, where members of the committee questioned several expenditure items and demanded documentary evidence to support the spending.
Chairman of the committee, Senator Orji Uzor Kalu, expressed displeasure with the financial report submitted by the commission, insisting that lawmakers were yet to receive a satisfactory account of how public funds released to the agency had been spent.
Among the issues raised by the committee were a reported N153 million paid for a one-room liaison office in Abuja and another N2.5 billion listed under expenditure items which lawmakers said lacked sufficient explanation and supporting documentation.
Kalu told the commission’s management that information available to the committee indicated that about N13 billion remained in the commission’s accounts from the N16.6 billion released by the Federal Government in December last year, leaving approximately N3.6 billion already expended and requiring proper justification.
“This committee is disappointed with the financial report given, which is completely unacceptable,” Kalu stated.
As the session progressed, lawmakers repeatedly challenged the explanations provided by the commission, maintaining that several entries in the financial records were unclear and unsupported by relevant documents.
Other members of the committee, including Senators Enyinnaya Abaribe, Victor Umeh and Austin Akobundu, also demanded a clearer breakdown of expenditures, contracts and payment records.
A visibly angry Kalu warned the Managing Director to exercise prudence in the management of public funds, stressing that the committee had gone far in establishing the true position of the commission’s operations.
He stated that the panel did not want any surprises and expected full disclosure from the agency when the requested documents are submitted.
Kalu further stressed that the Senate would insist on accountability for every kobo released to the commission and would continue to scrutinise its financial activities in line with its oversight responsibilities.
Responding to the concerns raised by lawmakers, Okoye defended the commission’s financial management approach, maintaining that expenditures undertaken so far were guided by available resources and careful planning.
According to him, the commission had deliberately avoided committing itself to projects that lacked adequate funding, noting that budgetary allocations do not automatically translate into cash availability.
“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 infrastructure projects require phased financing and that it would be irresponsible for the commission to award contracts beyond funds that had actually been released.
“What we want to avoid is a situation where contracts are awarded without the financial capacity to execute them,” he further stated.
He explained that a budgetary provision does not necessarily mean that equivalent cash resources are available at the same time, adding that indiscriminate contract awards could create liabilities that would be difficult to fund.
Despite the explanations, the committee remained unconvinced and directed the management of the commission to submit comprehensive records, including contract details, payment schedules, procurement documents and other supporting financial records on or before June 23. Kalu said the committee would review the submissions and subsequently determine the date for the commission’s next appearance before the panel.
The session was thereafter adjourned, with lawmakers reiterating their determination to ensure transparency and accountability in the management of funds appropriated for the development of the South-East region.
