PROBLEMS AND PROSPECTS OF FRAUD IN THE LOCAL GOVERNMENT SYSTEM

PROBLEMS AND PROSPECTS OF FRAUD IN THE LOCAL GOVERNMENT SYSTEM

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The idea of checks and balances were conceptualized as a result of outrageous increase in man’s avarice and crooks, which often result to fraud and aggrandizements consequently looking at government and public treasury forms regular part of global crime today.

Fraud is a false representation of matter of fact whether by words or by conduct by false or misleading allegations or by concealment of what should have been disclosed that deceives and is intended to deceive another so that the individual will act upon it to here his legal injury.

However, the introduction of monetary economy and the growth of capitalist exploitative lenders have led to stratification of the society using wealth as prime index, thus increasing the incidence of fraud.

Furthermore, the increased membership of various business organizations, managerial inefficiency poor span of control and lack of effective internal control system sky rocket the incidence of fraud in both private and government establishment.

To minimize wide spread of this problems, certain control and regulatory measures were put in place by government similarly, local government system, which is also a form public sector organization with people of heterogeneous character and background equally adopted these measures.

The emergence of auditing as an administrative tool of checking frauds, errors and other financial irregularities has inevitably contributed to successful existence of several local government system especially where management was in efficient for instance, from it humble beginning, auditing has increased cutting across every activities of an organization both financial and other wise it embraces all forms of internal control mechanism and as an independent examination of book to book to from opinion on whether the financial statement of an organization represent a true and fair view of the business undertaken within a period of time under view.

Through auditing members of local government, the reliability, credibility and authenticity of their administration were assumed. Also fraud and other financial irregularities were to be minimized

However, it is appalling that several local government have not really embrace the significance of auditing of their economic endeavours. This often result to embezzlement and mismanagement of their funds, also poor literacy levels of members and lack of accounting experience make some local government to keep scarcity records of their business which cannot from a strong basis for detailed audit work.

In order to see the extent fraud has dome more harm than good to the success of local government administration a research will be carried out within Ekiti State, using Emure local government as a case study.

1.2   STATEMENT OF THE PROBLEM

The inhabitant of Ekiti State Nigeria has found a lot of local government administration through integrated effort but not all these local government administration perform satisfactorily due to inadequate audit exercise and its underlying consequences on the other hand, some local government which recognized the importance of auditing as one of their statutory obligations have experience some problems which are stated below in a verifiable form.

  • Lack of adequate according records could contributed to ineffective audit in local government administration how literacy hard of the local government administration in Ekiti State is responsible for them poor financial record keeping.
  • Irregular auditing give room for fraud and other practice among local government in Nigeria do not participate actively in their business due to lack of confidence arising from infrequent auditing of their local councils.
  • The importance of auditing are not well told when auditor are denied to vital accounting record.
  • Lack of qualified local government auditors.

 

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Updated: 23rd August 2018 — 10:15 pm