The South East Development Commission (SEDC) has dismissed reports that it secured the ₦25 billion loan from a commercial bank at an interest rate of 30% without securing mandatory approvals from the Debt Management Office (DMO) or the National Assembly.

Chairman of the Commission, Chief Emeka Wogu, told The Guardian that there was no truth in the reports making the rounds, stressing, however, that the commission would “release an official response soon” on the allegations.

The Association of Igbo Town Unions (ASITU) had at the weekend raised concerns about an alleged N25 billion secret loan, stressing that the lack of public clarification from the SEDC since the reports emerged has further fueled suspicion.

Its president, Chief Emeka Diwe, called for immediate accountability and an overhaul of the commission’s operations to prevent it from becoming “a haven for corruption”.

It lampooned the Commission’s leadership for failing to convene a meeting with key stakeholders such as traditional rulers, town unions, clergy, and private sector leaders to collectively define the commission’s vision and priorities.

“We are now faced with allegations of a backroom deal involving a predatory loan that raises more questions than answers,” Diwe said.
The group also demanded the urgent convocation of a South East Development Summit to enable the commission to publicly present its vision, financial standing, and proposed projects.

It called for the establishment of a stakeholders advisory council comprising representatives from various sectors, including town unions, traditional rulers, academia, and the diaspora.