The South East Development Commission (SEDC) has defended its expenditure profile following concerns raised by the Senate Committee on South East Development Commission, insisting that a ₦2.5 billion contract highlighted during a recent hearing had not been paid out.
The commission made the clarification in a statement issued on Tuesday in response to issues raised during its appearance before the Senate Committee chaired by Senator Orji Uzor Kalu.
The SEDC delegation, led by its Managing Director and Chief Executive Officer, Mark Okoye II, had appeared before the committee to provide updates on the commission’s activities and expenditure.
Addressing concerns over the ₦153 million spent on its Abuja liaison office, the commission said the figure represented the cumulative cost of establishing and operating the office from February 2025 to date, and not the rent for a single office space as portrayed during the hearing.
According to the commission, the office serves as a strategic hub for engagements with the National Assembly, federal ministries, agencies, development finance institutions and other partners critical to the execution of its mandate.
The commission added that plans were underway to relocate operations to its designated headquarters in Enugu, noting that it had secured a building from the state government rather than acquiring a new facility to reduce costs.
On the ₦2.5 billion categorised during the hearing as “implied expenditure”, the commission explained that the amount relates to a contract awarded for the rehabilitation of its headquarters facility in Enugu.
It stated that the contract was awarded in accordance with the Public Procurement Act 2007, following approvals from the Bureau of Public Procurement and the supervising ministry.
The commission stressed that the amount represented a committed budgetary obligation and had not been disbursed.
“To be precise, this money has not left the commission’s accounts,” it stated.
SEDC further disclosed that it had not received any release from its capital budget since its establishment and that all expenditures incurred so far had been funded from recurrent allocations.
It said the funds had been used for staff salaries and arrears, training of personnel, establishment of operational offices in Abuja and Enugu, and the procurement of information and communication technology infrastructure.
The commission also noted that it received its first disbursement more than 10 months after its establishment, a situation it said influenced its expenditure pattern during the period.
According to the statement, preparations for capital projects have nevertheless continued to ensure speedy implementation once capital funds are released.
SEDC confirmed that proceedings before the Senate committee had been adjourned and that it had been directed to submit detailed documentation, including contracts, payment schedules and supporting records, on or before June 23.
The commission said it welcomed the request and had sought time to collate the required documents.
The Senate committee had indicated that it was seeking explanations for approximately ₦3.6 billion allegedly spent from the ₦16.6 billion released to the commission.
The commission expressed confidence that the requested documents would provide clarity on its financial activities when the hearing resumes.
