The Association of Igbo Town Unions (ASITU), the apex body for Igbo town unions, has raised serious concerns about allegations surrounding the South East Development Commission (SEDC) over a ₦25 billion secret loan.
The group press statement signed by its President, Emeka Diwe called for immediate accountability and an overhaul of the commission’s operations to prevent it from becoming a haven for corruption.
The group recalled that media reports allege that the SEDC Board and Management 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. The lack of public clarification from the SEDC since the reports emerged has further fueled suspicion.
“This silence is inexplicable and speaks volumes. If these allegations are true, it represents a betrayal of public trust and a violation of due process. It also poses a dangerous threat to the future of the South East region,” part of ASITU statement said.
ASITU underscored the historical importance of the SEDC, established in 2024 as a structural response to the decades of post-civil war marginalization endured by the Igbo people.
“The SEDC was not a gift; it was a moral necessity born from the ashes of the genocide of 1967 to 1970, during which over three million Igbos were killed. It represents a beacon of hope for our region, and we will not allow it to be hijacked or sabotaged,” ASITU stated.
The group criticized the leadership of the SEDC 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. Instead, ASITU said, “We are now faced with allegations of a backroom deal involving a predatory loan that raises more questions than answers.”
ASITU highlighted key unanswered questions about the loan: “Who authorized it? What projects is it tied to? Under what conditions will it be repaid? Who are the beneficiaries? Why was due process blatantly ignored?”
The group warned that securing a 30% interest loan for a nascent institution like the SEDC is not just economically unsound but also potentially disastrous for the region’s development.
“Where is the grand vision that necessitated such borrowing? Why are we not seeing ambitious projects like a South East Railway Grid, an Integrated Superhighway Network, or a South East Tech Valley to empower our youth and position the region as a hub for innovation? Instead, we are dealing with secrecy and possible corruption,” ASITU lamented.
To address these issues, ASITU called for an immediate and transparent investigation by the Presidency and the National Assembly into the alleged loan transaction. If the allegations are substantiated, ASITU insists that those involved must face appropriate sanctions under the law.
The group also demanded the urgent convocation of a South East Development Summit for the commission to publicly present its vision, financial standing, and proposed projects. They emphasized the importance of consulting the people before making major decisions.
ASITU further called for the establishment of a Stakeholders Advisory Council comprising representatives from various sectors, including town unions, traditional rulers, academia, and the diaspora. This council, the group said, would act as both a watchdog and an advisory body to ensure the SEDC aligns with regional aspirations.
The association advocated for the adoption of an anti-corruption policy within the commission, which would include independent audits and real-time public disclosure of financial transactions. Transparency, they argued, must be at the core of the SEDC’s operations.
ASITU emphasized the need for the SEDC to reorient its development focus around strategic areas such as infrastructure, education, innovation, and cultural renaissance. They stressed that these efforts should not be pursued as isolated projects but as part of a cohesive regional strategy driven by community involvement.
The group also proposed a moral reorientation campaign to revive Igbo values of integrity, hard work, and accountability. These values, they asserted, should define the culture of the SEDC and all its engagements.
ASITU reiterated its commitment to mobilizing communities, sensitizing the public, and engaging national and international institutions to ensure the SEDC fulfills its mandate.
“The South East has been neglected for far too long, and we will not allow this commission, born out of struggle and necessity, to become a tool for political merchants or opportunists,” the statement read.
The group called for collective vigilance.
“We will remain eternally vigilant and ensure the SEDC serves the greater good of the South East. This is a historic responsibility, and we dare not fail.”
