The South East Development Commission (SEDC) has defended the contract for the rehabilitation of its proposed headquarters in Enugu, insisting that funds linked to the project have not been released and that all procurement procedures were duly followed. The clarification comes in the wake of an oversight session with the Senate Committee on South East Development Commission, during which questions were raised over some of the Commission’s expenditures and financial commitments.
Addressing Concerns on Implied Expenditure
Addressing concerns surrounding what has been described in public commentary as “implied expenditure,” the Commission explained that the funds relate to the rehabilitation of a building in Enugu transferred to it by the Enugu State Government to serve as its permanent headquarters. According to the Commission, the facility requires extensive renovation before it can function as a modern administrative headquarters capable of supporting its regional development mandate.
Procurement Process and Legal Compliance
SEDC said the rehabilitation contract was awarded in line with the Public Procurement Act 2007, following approvals from the Bureau of Public Procurement (BPP) and the supervising ministry. The Commission stressed that the expenditure represents a budgeted financial commitment rather than actual spending. “These commitments represent budgeted obligations that have been lawfully committed but not yet disbursed. To be precise, this money has not left the Commission’s accounts,” the statement noted.
Cost-Effective Decision on Headquarters
The Commission further revealed that it deliberately opted against acquiring a new headquarters facility, arguing that such a move would have imposed a heavier burden on public resources. Instead, it secured the transfer of an existing government-owned property in Enugu and entered into an agreement with the Enugu State Government to fast-track its rehabilitation and eventual occupation.
Commitment to Operational Presence in South-East
SEDC said its management remains committed to relocating fully to Enugu as soon as the facility is ready, describing the move as part of efforts to establish a strong operational presence within the South-East. While awaiting completion of the headquarters project, the Commission continues to operate from its Abuja liaison office, which it said serves as a strategic engagement hub for interactions with the National Assembly, federal ministries, development finance institutions and other partners.
Documentation Submission to Senate Committee
The Commission also disclosed that it would submit comprehensive documentation on the Enugu headquarters project, including procurement records, contract details and financial schedules, to the Senate Committee on or before June 23, 2026. SEDC maintained that a full review of the records would demonstrate that all actions taken regarding the Enugu headquarters were aimed at strengthening institutional capacity while ensuring prudent management of public resources.
