Senate accuses South East Development Commission of paying N153m for one-room office in Abuja

The Senate has accused the South East Development Commission (SEDC) of spending N153 million annually on what lawmakers described as a one-room liaison office in Abuja, as the commission came under intense scrutiny over its handling of a N16.6 billion allocation. The allegation was made on Tuesday during an investigative hearing of the Senate Committee […]

The Senate has accused the South East Development Commission (SEDC) of spending N153 million annually on what lawmakers described as a one-room liaison office in Abuja, as the commission came under intense scrutiny over its handling of a N16.6 billion allocation.

The allegation was made on Tuesday during an investigative hearing of the Senate Committee on the South East Development Commission, chaired by Senator Orji Uzor Kalu, who questioned the commission’s Managing Director, Mark Okoye, over its financial records and operational spending.

Kalu demanded to know how much remained from the N16.6 billion released to the commission and how the funds had been utilized, warning that the committee would not overlook any irregularities.

“We’ll not tolerate anything, whether you’re appointed by heaven and earth. My duty is to do my duty as a parliamentarian. I don’t care how you reached here, but the constitution has given us a job to do,” Kalu said.

The former Abia State governor specifically asked the SEDC boss to disclose the balance in the commission’s account.

Responding, Okoye said the agency still had between N11.5 billion and N12 billion, indicating that more than N4 billion had been spent on operational activities.

However, Kalu rejected the explanation, insisting that the figures did not tally with information available to the committee and records obtained from the Central Bank of Nigeria (CBN).

“In the committee, we have access to anywhere you can spend money and keep money. I have spoken to the Central Bank, and we have sent the Auditor-General to audit everything you have done because I am not impressed,” he said.

Unable to provide a detailed breakdown of the expenditure during the hearing, Okoye was directed to return before the committee next Tuesday with comprehensive documentation showing how the funds were utilized.

“We’re not satisfied with your job. This is not a job somebody who claims to be an expert like you should be doing. I’m very disappointed, and this committee is very disappointed. We give you one week to go back and tell us the whole truth because you’re wasting our time,” Kalu added.

The hearing became more heated when the senator alleged that the commission was paying N153 million for a small office in Abuja despite maintaining its headquarters in Enugu.

“You have one little office here in Abuja and you pay N153 million for one room. This committee knows. You’re dealing with people who have gone farther than you think you can go. This is why I’m warning you people; let us not continue this joke here,” he said.

Other lawmakers, including Senators Enyinnaya Abaribe, Victor Umeh, and Austin Akobundu, also expressed dissatisfaction with aspects of the commission’s financial report and demanded further explanations.

SEDC defends spending

Defending the commission’s expenditures, Okoye maintained that all spending was lawful and aimed at establishing the institution and executing priority projects.

He said the commission was deliberately aligning contract awards with available funds to avoid creating unfunded liabilities.

“Our approach has been to ensure that available resources are directed towards priority projects. It would be irresponsible to award contracts worth the entire budget if only a fraction of the funds has actually been released,” he said.

Following the hearing, the SEDC issued a statement clarifying that the N153 million was not solely rent for a single room but covered the establishment and operation of its Abuja liaison office located at the Congress Building, 70 Mississippi Street, Maitama.

According to the commission, it occupies the basement, ground floor and boardroom of the building under a signed lease agreement, while the amount also includes operational costs, utilities and fit-out works from February 2025 to date.

The commission also addressed concerns over N2.5 billion classified as “implied expenditure,” explaining that the amount relates to a contract awarded for the rehabilitation of its headquarters in Enugu and has not yet been disbursed.

“To be precise, this money has not left the commission’s accounts,” the agency stated.

The Senate committee subsequently directed the SEDC to submit all procurement records, contract details, payment schedules and supporting financial documents by June 23, after which lawmakers will determine the date for the commission’s next appearance.

The South East Development Commission, established under a law signed by President Bola Tinubu in 2024, was inaugurated in February 2025 to drive infrastructure and economic development across the South-East region.