The Effect of Corruption and Economic Crimes of the Management Resources in the Public Sector
OBJECTIVES OF THE STUDY
Corruption and economic crimes have hitherto hindered the efficiency and growth of the public sector in rendering their services. It is in this stead, the study is aimed at:
(1) To evaluate measures by government in curbing corruption and economic crimes in the public sector.
(2) To determine the role-played by anti – graft agencies.
(3) To determine if public funds are utilized effectively.
Our focus in this chapter is to critically examine relevant literature that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.
Precisely, the chapter will be considered in two sub-headings:
- Conceptual Framework
- Theoretical Framework
- Chapter Summary
According to section 2 of I.C.P.C Act (2000), corruption simply connotes impropriety and encompasses all forms of reprehensible, indecorous and infamous conduct in the performance of some official and non – officials responsibilities. This means any act, which go out of any normal societal behaviour.
According to Nye, J.S. (1967), Corruption is a behavior, which deviates from the formal duties of a public role, because of private (gains) – regarding (personal, close family, private clique, pecuniary or status gains). It is behavior, which violates rules against the exercise of certain types of duties for private gains – regarding influence.
Banfield (1961) says that corruption includes such behaviour as bribery (use of a reward to prevent the judgment of a person in a position of trust; nepotism (bestowal of patronage by reasons of ascriptive relationship rather than merit); and misappropriation (illegal appropriation of public resources for private uses.
Corruption is the efforts to secure wealth or power through illegal means private gain at public expense; or a misuse of public power for private benefit. (Lipset and Lenz 2000).
According to Gboyega (1965), “Corruption and Democratization in Nigeria”, Corruption involves the giving or taking of a bribe, or illegal acquisition of wealth using the resources of a public office, including the exercise of discretion”.
Four major categories of corruption, and the respective terms used to define them, can be gleaned from the literature. The cost-reducing corruption involves attempts by civil servants to reduce the regulation-induced costs of a business firm below their normal levels. John Mukum Mbaku notes that behaviours associated with this type of corruption include the ‘illegal reduction of a private company’s tax obligations to the state, and the exemption of an enterprise from compliance with certain statutes and rules.’ Such reductions in the cost of a business firm’s transactions generate funds that are divided between the civil servant and the firm owner based on a prearranged formula. The cost-enhancing corruption occurs in many developing countries, where the regulatory activities of government usually foist price ceil- ings on the sale of foodstuffs, domestically, especially in the urban areas, resulting in severe shortages. Bureaucrats in charge of state stocks of food then attempt to extract rents from po- tential consumers by charging them a price that approximates the free market price. Besides, the civil servant can deploy the state’s coercive force to illicitly appropriate private property (for example, through illegal taxation) for his or her own use. With the benefit-enhancing corruption, while carrying out their duties, civil servants may permit more public benefits to accrue to an individual or group than are legally permitted. In return for the favour, the recipients then share the additional benefits with the civil servants based on prior arrange- ments. This type of corruption is quite pervasive in Africa and many other developing regions of the world precisely because it is quite easy to carry out. Incumbents use it quite often to transfer public resources to their cronies; to bribe individuals and groups that have developed enough to pose a threat to regime security; and to subsidise competitive elites (for example, military officers) who could potentially unsettle the government. With the benefit-reducing corruption, civil servants illegally appropriate public benefits that are owed to private citizens. How is this manifested? Basically, the manager of a state pension fund can delay the transmis- sion of retirement benefits to pensioners, deposit the funds in an interest-bearing account at a local bank, and subsequently appropriate the accrued earnings for his own benefits. Due to information asymmetries (for instance, civil servants are privy to more information about public benefits programmes vis-à-vis most citizens), this type of corruption is relatively easy to undertake.
Historical Background of Corruption in Nigeria Public Sector
The Nigerian society has never been well governed because of impunity and corruption since it gained its political independence in 1960 (Oluwasanmi, 2007, Ebegbulem, 2009). Oluwasanmi, (2007); Imhonopi and Ugochukwu, (2013) are of the opinion that from the first democratic experiment in 1960 to military regimes and back to democracy as practiced in the country today, Nigeria has unfortunately been managed by corrupt leaders who are visionless, weak, parochial, morally bankrupt, narcissistic, egoistic, greedy and corrupt. The leadership from 1960 has criminally managed the country’s affairs, accumulate wealth at the expense of national development and throwing the people over the precipice where they now wallow in absolute poverty, illiteracy, hunger, rising unemployment, avoidable health crisis and insecurity (Ebegbulem cited in Imhonopi and Ugochukwu, 2013). The Formal president Olusegun Obasanjo assumed office in 1999 as poor politician (all his bank accounts amounted to about N20,000) but eight years later he had refurbished and expanded a derelict agricultural (poultry) farm at Ota in Ogun State to be now worth hundreds of millions of naira (Oluwasanmi, 2007). Obasanjo now possesses educational institutions that run from primary level to university, he now has over two hundred millions of shares in various conglomerates, most especially Transcorp Nigeria Limited (Oluwasanmi, 2007). His effort at combating corruption made little or no impact in the war against political corruption as his friends and officials under him were corrupt (Ebegbulem 2012; Oluwasanmi, 2007). Furthermore, corrupt leadership has also been visible in the past administration. The people of Nigeria and the world have observed the cluelessness and low credibility of the past Goodluck Jonathan administration. New York Times Newspaper of May 6th 2014 describes him as “leading a corrupt government that has little credibility”( Moris,2015). In a similar vein, Jonathan government was also described by former US Republican presidential nominee, Senator McKay as a practically nonexisting government that has lost credibility in providing security of life and property (Ijewereme and Dunmade, 2014). In addition, Hillary Clonton, the former US Secretary of State in separate events in New York City said the Nigerian government under President Goodluck Jonathan, squandered its resources, and indirectly helps corruption to fester in the troubled country ( Moris , 2015) . Falana (2012) opines that, under president Goodluck administration: “some of the governors and his party members under investigation posted their orderlies and relations to man departments in the EFCC”. Falana further posits that corruption is being carried out with impunity under past President Goodluck Jonathan administration to the extent that the war against corruption has been lost completely. The minister of petroleum, “Mrs. Daziani Allison Madueke has been indicted of corruption by five different investigative panel Committees reports at different time, yet she confidently remains in charge of the Ministry unperturbed” (Melaye, 2013), without the president demonstrating political will to bring the minister to book. Madueke has also being recently indicted (for squandering 10 billion naira on private jet maintenance expense) by the House of Representative. The house called her to defend the indictment; instead she took court injunction restraining the house from further investigation and indictment of her office (Ijewereme & Dumande,2014). Presently she was indicted in UK for money laundry and charge to court (Punch,2015).
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e. mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION SAMPLING SIZE
The population for the study will consist of executives and their subordinates in the organization which is charged with the application of management by objectives to attain organizational goals in the organization.
This study was carried out on The effect of corruption and economic crimes of the management resources in the public sector using CBN, Asaba, Delta State as case study. Hence, the population of this study comprises of the staff of Central Bank Of Nigeria, Asaba Delta State.
DATA PRESENTATION AND ANALYSIS
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of fifty-nine(59) questionnaires were administered to respondents of which fifty fifty (55) were returned while 50 were validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 50 was validated for the analysis.
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS:
This chapter summarizes the findings on The effect of corruption and economic crimes of the management resources in the public sector using CBN, Asaba, Delta State as case study. The chapter consists of summary of the study, conclusions, and recommendations.
Summary of the Study
In this study, our focus was on The effect of corruption and economic crimes of the management resources in the public sector using CBN, Asaba, Delta State as case study. The study is was specifically set to; evaluate measures by government in curbing corruption and economic crimes in the public sector, determine the role-played by anti – graft agencies, evaluate the effectiveness and utilization of public funds by bank, and evaluate the checks and balances in bank on public funds.
The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent are staff of CBN Asaba, Delta State.
In the light of the analysis carried out, the following conclusions were drawn.
The measures by government and anti – graft agencies in curbing corruption and economic crimes aid the elimination of crimes in the public sector.
Public funds are not being utilized effectively
In the light of the findings, the following recommendations were made;
- The issue of accountability in the public financial management system in the public sector is very germane. Hence, proper implementation of the International Public Sector Accounting Standards (IPSAS) should be encouraged.
- Special courts should be established to try corruption cases. This will give speed and quick judgment to corruption cases.
- Ministries, departments and agencies across all levels should be encouraged to begin the use of the accrual basis of accounting, as this would make public managers accountable for recording and safeguarding of public assets, for managing public cash flows, and for disclosing and discharging public liabilities.
- Establishment of strong penal code system to enforce laws and rules as sternly as the need for adequate punishment for offenders on corruption and related matters on fund embezzlement.
- The criminal and penal laws need review. This is because they were not initially designed to solve the kind of problem experienced in the contemporary society where corruption has become “systemic with the institutionalization of corrupt motivation among various bureaucratic, political and business elites” (Ayua 2001).4)
- Honesty and transparency should be publicly rewarded. This will serve as an encouragement to the society and the upcoming generation that it pays to be honest.
- The Nigerian government should consider it a priority to supply adequate funding to the EFCC; ensure the stability of the leadership of the EFCC; employ competent personnel and provide sufficient training in fraud investigation process.
- The efficiency of the judiciary can be enhanced by appointing more competent judges with integrity and ensuring the speedy legal process especially those involving corruption cases.
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