An Examination Of The Socio-Economic Effects Of Fraud In The Public Sector Organization In Nigeria (A Case Of Nwangele Local Government, Imo State)

Project and Seminar material for Public Administration

Project and Seminar material for Public Administration


Abstract


The primary objective of this study was to examine the socio-economic effect of fraud in public sector organization in Nigeria; a study of Nwangele local government area. In carrying out this study, the researcher used survey research method in which questionnaire was used in collecting data.

The large population was all staff of Nwangele local government totaling 300 from this population of 300 a sample size of 150 was drawn. The researcher also asked research questions. The relevant literature was also reviewed for the study. The data was collected, presented and also analyzed.


Table Of Contents


Preliminary Page(s)

  • Title Page
  • Certification Page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One

1.0 Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the study
  • 1.4 Research Questions
  • 1.5 Statement of Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of terms

Chapter Two

2.0 Literature Review

  • 2.1 Introduction
  • 2.2 Meaning and concept of Fraud
  • 2.3 Explanation of Fraud in Local Government in Nigeria
  • 2.4 Socio-economic Effects of Fraud in Public Sector Organization
  • 2.5 Financial Accountability as a Tool for Achieving Effective Management of Public Finance Reduction of Fraud
  • Reference

Chapter Three

3.0 Research Design and Methodology

  • 3.1 Introduction
  • 3.2 Research Design
  • 3.3 Sources/ Methods of Data Collection
  • 3.4 Population and Sample Size
  • 3.5 Sample Technique
  • 3.6 Validity and Reliability of Measuring Instrument
  • 3.7 Method of Data Analysis

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Introduction
  • 4.2 Presentation of Data
  • 4.3 Analysis of Data
  • 4.4 Test of Hypothesis
  • 4.5 Interpretation of Result

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Introduction
  • 5.2 Summary of Findings
  • 5.3 Conclusion
  • 5.4 Recommendations
  • References
  • Appendix
  • Questionnaire

Chapter One


1.0 Introduction

1.1 Background Of The Study

The 21st century is enigmatic we have several advancements great waves of intellectual enlightenment, unparalleled socio-economic innovation with greater part of the world getting developed.

Never in the history has the world known so much international cooperation, nor has the world ever known better communication and information technology, yet no epoch of humanity other than this has known so much human suffering, crimes, man inhumanity to man and an almost maniac implementation of the Machiavellian inhuman humanism at all level of human relationship be it international, national, local or persons (Ihejirika 2002:2).

In a global society that parades a jingle on sustainable socio-economic development can be achievable in an economy of transparency and openness in accounting and financial practices leading to high level of fraud (Adeji 1999:70).

Such doubts has stimulated the attention of the researcher to the growing trend of fraud and other economic and financial crime in Nwangele local government area and other public sector organizations in Nigeria.

It is an accepted fact that without financial resources and it adequate management no private or public sector organization can perform its role effectively. Thus, financial resources and its management affect organization or even decline (van 1997:120).

The necessity for reform of the public machine as regard to financial management was felt in consideration of persistent fraud in Nwangele local government practices engender sound political and administrative decision, improve the accountability of government and reduce the scope for fraud and corruption. The study project fraud as a road block to the socio-economic development to Nwangele local government area.


1.2 Statement Of The Problem

Fraud has emerged as increasing serious problem in Nwangele local government administration. It constituted a very tropical issue which has accordingly elicited corresponding reaction from various sections of the society.

Fraud has penetrated the Nwangele local government administration and the system has been mutated hence, the organizational goal may not be achieved.

Therefore, fraud constitutes serious barriers to the socio-economic development of Nwangele local government area.


1.3 Objectives Of The Study

This research is designed to undertake an empirical investigation into the socio-economic effects of fraud in public sector organization in Nigeria with emphasis on Nwangele local government area.
Specifically, the study will

  1. Ascertain the incidence of fraud in Nwangele local government area.
  2. Identify if lack of transparency and openness in accounting and financial practices lead to fraud in Nwangele local government.
  3. Ascertain if negative value system and materialistic tendencies of the employers of Nwangele local government lead to fraud.
  4. Identify the use of qualified manpower with proven integrity will reduce fraud in Nwangele local government.

1.4 Research Questions

The study will provide answers to the following research question.

  1. To what extent is the incidence of fraud in Nwangele local government?
  2. To what extent does transparency and openness in accounting and financial practices lead to fraud in Nwangele local government?
  3. To what extent does negative value system and materialistic tendencies of the employees of Nwangele local government lead to fraud?
  4. To what extent does the use of quality and qualified manpower with proven integrity reduce fraud in Nwangele local government administration?

1.5 Statement Of Hypothesis

Having critically analyzed what necessitated the researcher to go into this study and pertinent questions. I intent to aces to provide results which rotate around the employees of Nwangele local government administration and their attitude that lead to fraud. He has assumptions that would guide him in drawing his hypothesis which would finally lead to unearth relevant data to accomplish the study.

As already explained in the earlier part of this section, hypothesis would be reduced in line with the thinking or assumption already advanced above by the researcher.

The hypothesis would therefore be in two fold. This Ho (Null Hypothesis) and H1 (Alternate Hypothesis).
These are Ho; employees of Nwangele local government lack transparency in discharging of their duties.

  1. H1: employees of Nwangele local government have
    Transparency in discharging of their duties.
    Ho: employees of Nwangele Local government does not have transparency in discharging of their duties.
  2. H1: Nwangele local government has efficient manpower resources in the process of running their administration.
    Ho: Nwangele local government lacks efficient manpower resources in the process of running their administration.

1.6 Significance Of The Study

In the academic world, a study carried out for its sake without practical inclination or provision for practical use to humanity is of no use. Consequently, in this study, efforts are made to tailor the research to the needs both intellectual and practical to mankind as justification for the time and resources (human and material) explained on the undertaking.
The significance of the study are:

  1. This study will sensitize the society on the adverse effect of fraud on the socio-economic development of Nigeria.
  2. The ideas and strategies generated from this study will help in providing solution to fraud and other association crimes.
  3. The study will help the public appreciate government effort at ameliorating out socio-economic well being.
  4. This research will increase the body of knowledge.
  5. This study will alert the society on the incidence and pattern of fraud in public sector organizations.
  6. Through this study, the workers and indeed all the good people of Nigeria will approach their assigned duties from a patriotic point of view.
  7. This study will also alert the general public on the importance of prudent financial management for efficiency and effectiveness of the public sector organizations.
  8. The findings of the study will be useful to the policy makers, implementers, government and the general public.

1.7 Scope Of The Study

This study is concerned with the examination of the socio-economic effects of fraud in public sector organization in Nigeria using Nwangele local government area as a case study although the focus is on Nwangele local government area.


1.8 Limitation Of The Study

This is the study that sought to examine the socio-economic effects of fraud in public sector organization in Nigeria with emphasis on Nwangele local government area.

The generalization of finding the study is therefore limited because the researcher used only one local government in Imo state out of twenty seven local governments in the state and seven hundred and seventy four local governments in Nigeria.

Again lack of finance is another problem. Due to lack of finance, the researcher found it difficult to carry out in depth study and also to sample opinion from many local government areas. In this case, the generalization of the findings of the study could be limited.

Also, Nigeria libraries are not adequately equipped coupled with poor documentation and preservation culture of our people. In this case the generalization of the finding of the study could be limited.

Another short coming of the study is in the area of the method of data collection. Since questionnaire is used in collecting information, the respondents can deliberately fake their responses. In this case the generalization of the finding of the study could be limited.

Furthermore, shortness of time for the study made it impossible for the researcher to carry out the research for a long time and also make in depth investigation to confirm how reliable and valid the result gotten from the research are. In this case, the generalization of the finding of the study could be limited.


1.9 Definition Of Terms

Fraud:

Deliberated misrepresentation of facts for purpose of depriving someone valuable possession.

Corruption:

Deviating from honesty, influenced by bribery, to induce to act dishonestly, to destroy the integrity: bribe (Okonkwo 2005:344)

Socio-Economic:

The science of the nature and growth of society and social behaviours and science of production, distribution and consumption of goods (Hartzell 2006:356).

Effect:

The result of a particular influence

Challenge:

The situation of being faced with something needing great mental or physical effort in order to be done successfully and which therefore tests a person’s ability.

Local Government:

Government at local level exercised through representative councils established by law to exercise specific power within defined areas (Adamo Lekun 1986:71).

Man Power:

Human resources or human capital for any organization (Udeze 2000:90)

Organization:

A combination of people or individual effort working together in pursuit of a certain common purpose called organizational goals or objective.

Employee:

Someone who is paid for working for someone else.

Strategies:

A detail plan for achieving success in a situation such as business, work motivation etc.

Development:

A new stage which is to result of developing (Hartzell 2006:118)

Programme:

A plan of activities to be done or things to be achieved.

Incidence:

It is the rate or frequency or seriousness of an event or activity or problem etc.

Implication:

What is implied, something hinted or suggested out not expressed.

Patterns:

It refers to form, types, varieties of events or an event or activity or problem etc.

Economic Crimes:

Crime connected with trade, industry and development of wealth of a country, an area or society.

Sustainable Development:

That development which meets the needs of present generation without jeopardizing the right of future generation to meet their own needs.


Chapter Five


5.0 Summary Of Findings, Recommendation And Conclusion

5.1 Introduction

This section of this research work tends to investigate, analyze, examine and determine the effects of fraud in the public sector organization.

Also to give suitable recommendation in solving problems arising from fraud in the Nigerian public sector.


5.2 Summary Of Findings

The focus of the study is on examination of the socio-economic effects of fraud in public sector organization in Nigeria. A case study of Nwangele local government area. The following results were obtained from the study.
That there is high incidence of fraud in Nwangele local government. Fraud is a universal problem for all government and all countries. New evidence of fraud by leading politicians an public officials in surfacing in virtually every corner of the globe. The virtue of high moral rectitude, cherished conventional culture has given way to business without consideration for fair play and moral principle in a get rich quick of modern time. The over increasing race of fraud seem endless.

Also that lack of transparency and openness in accounting and financial practice lead to fraud in Nwangele local government.

The research has shown that lack of transparency in accounting and auditing practices is one of the major factors that causes and prolong financial and economical crises. Lack of transparency may exist if access to information is denied if the information given is irrelevant to the issues at hand or if the information is misrepresented; in accurate and untimely in accounting reports hamper financial stability economic development and sustainable democracy.

Again, that negative value system and materialistic tendencies local government led to fraud. The high rate of fraud in Nwangele local government is anchored on moral decadence destitution, inordinate ambition and the get rich quick attitude now prevent in Nwangele local government area.

Also fraud is on the increase because many people from Nwangele local government area abhor honesty and excellence but respect dishonesty and mediocracy. That the virtue of high moral rectitude cherished, conventional cultural has given way to business without consideration for fair play.

Furthermore, that the use of qualified manpower with proven integrity will reduce fraud in Nwangele local government administration. Qualified manpower with proven integrity is not only critical but measure of Nwangele local government strength, security and well being. The qualified human resources of Nwangele local government hold the key to its survival prosperity and future economic and social development. It is an incontrovertible fact that qualified manpower with proven integrity is not only important resource; it is very costly and valuable. No local government can carry out any of it development programme without adequate and competent manpower.


5.3 Conclusion

The socio-economic effect of fraud on public sector organization using Nwangele local government area as a case study cannot be over emphasized. Fraud and other economic and financial crimes in our society has its roots in ostentations life style, high premium placed on material wealth, infused negative values by government due to lack of transparency, accountability and openness. It has become increasing doubtful if sustainable socio-economic development devoid of transparency and openness. The need to relate causes and effects in the search for effective fraud control strategies is in order because accurate analysis of the causes of fraud will invariable leads us to the discover appropriate solution.

It is obvious that Nigeria need a reformed of her political structures and institution, it is a reform that will bring about a system in which there will be justice and therefore greater unity, less fraud more efficiency and Nigerian nationalism. The eradication of fraud is a major surgery that must undergo operations at the level of social and ethical consciousness.


5.4 Recommendation

In line with findings of this research the following recommendations are made;

  1. Public awareness campaign (PAC) should be organized to sensitize the public on the incidence and patterns of fraud in public sector organization in Nigeria. The socio-economic implication of fraud should also be highlighted.
  2. There is need for fundamental re-orientation to change Nigeria crime profile and negative perception. Government should organize seminars to change our value system which is anchored on materialism, inordinate ambition and get rich quick attitude now prevalent in our society.
  3. Also the Economic and Financial Crimes Commission (EFCC) should be completely committed to execute anything legal that would assist it in discharging it mandate of fighting economic and financial crime in Nigeria.
  4. Also the judiciary and other stakeholders in the fight against economist economic and financial crime commission (EFCC). The role of judiciary in combating economic crimes and other crimes as well as the challenges of prosecuting economic and financial crimes, criminals should be highlighted.
  5. Again today accounting has sharply shifted from offering stewardship role to include informative role. The information provide by accounting must be transparent to enhance informed judgment and decision greater transparency and openness in accounting practices will engender sound political decision improves the accounting of government and reduces the scope of fraud.
  6. Qualified manpower with proven integrity should be taken as the most important resources of an organization because through it other resources are harnessed to meet the needs of man. It should not be an incontrovertible fact that manpower is not only an important resource; it is very costly and valuable. It should be highlighted no organization can carry out any of it development/ programmes without adequate and competent manpower. Qualified manpower should not only be seen as critical but a measure of a nation’s strength, security and well being. The human resources of an organization should be seen as holding the key to its survival, prosperity and future economic and social development.
  7. It should be noted that if the manpower is effectively managed an planned its knowledge, powers, skills and competence can lead to enviable social and economic progress in the local government.

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