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
- Ascertain the incidence of fraud in Nwangele local government area.
- Identify if lack of transparency and openness in accounting and financial practices lead to fraud in Nwangele local government.
- Ascertain if negative value system and materialistic tendencies of the employers of Nwangele local government lead to fraud.
- 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.
- To what extent is the incidence of fraud in Nwangele local government?
- To what extent does transparency and openness in accounting and financial practices lead to fraud in Nwangele local government?
- To what extent does negative value system and materialistic tendencies of the employees of Nwangele local government lead to fraud?
- 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.
- 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.
- 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:
- This study will sensitize the society on the adverse effect of fraud on the socio-economic development of Nigeria.
- The ideas and strategies generated from this study will help in providing solution to fraud and other association crimes.
- The study will help the public appreciate government effort at ameliorating out socio-economic well being.
- This research will increase the body of knowledge.
- This study will alert the society on the incidence and pattern of fraud in public sector organizations.
- Through this study, the workers and indeed all the good people of Nigeria will approach their assigned duties from a patriotic point of view.
- This study will also alert the general public on the importance of prudent financial management for efficiency and effectiveness of the public sector organizations.
- 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.
