ABSTRACT
This research evaluate the assessment of fraud prevention and control in the
industrial training fund in Bauchi State. The study adopts survey method and
data for the research was collected with the use of questionnaire administered
to fifty (50) respondents. The simple percentage method was used for data
analysis and the formulated hypothesis was tested with chi-square (X2
). The
findings revealed that there is significant relationship between financial
incentives and employees motivation towards the prevention and control of
fraud in an organisation. The study recommends that to minimize losses against
fraud, management must be built in a safeguard in all aspects of the
organisation’s operations. These safeguard must be subject to regular review,
effectively assessed and compliance ensured. Finally, external vigilance should
be the watch – word of fraudulent practices are to be curtailed.
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TABLE OF CONTENTS
Title page ………………………………………………………………………. i
Declaration approval page …………………………………………………….. ii
Approval page………………………………………………………………….iii
Dedication ……………………………………………………………………. iv
Acknowledgement …………………………………………………………… v
Abstract ………………………………………………………………………. vi
Table of content ……………………………………………………………… vii
CHAPTER ONE
Introduction
1.1 Background of the study ………………………………………………. 1
1.2 Statement of the problem ……………………………………………… 3
1.3 The main objective of the study ……………………………………….. 4
1.4 Hypothesis ……………………………………………………………… 4
1.5 Significance of the study ………………………………………………. 5
1.6 Scope of the study ……………………………………………………… 5
1.7 Limitation of the study ………………………………………………… 6
CHAPTER TWO
2.1 Introduction ……………………………………………………………. 7
2.2 The meaning of fraud ………………………………………………….. 7
2.3 Problems of public Enterprises ………………………………………… 8
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2.4 Types of fraud ………………………………………………………….. 8
2.4.1 External fraud ………………………………………………………….. 9
2.4.2 Mixed fraud
2.4.3 Computer fraud
2.4.4 Institutional causes of fraud
2.4.5 Environmental/Societal cause
2.4.6 Procedure of detecting fraud
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research design
3.3 Sample and Sampling Technique
3.4 Method of Data Collection
3.5 Method of Data Presentation and Analysis
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.1 Introduction
4.2 Analysis of Data
4.3 Testing of Hypothesis
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4.3.1 Determination of degree of freedom
4.3.2 Testing of Hypothesis question
4.4 Finding of the study
CHAPTER FIVE
SUMMARY, RECOMMENDATION AND CONCLUSION
5.1 Summary
5.2 Conclusion
5.3 Recommendation
Reference
APPENDIX
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CHAPTER ONE
INTRODUCTION
1.1 Background of the study
This article address some fundamental issues on fraud prevention and
control and their implications on socio-economic development of Nigeria using
its public sector machinery using the records compiled from early study
covering 637 reported fraud cases in Nigeria, which were committed between
2009-2012 in respect of three-tier of government selected from Bauchi, the
study employs chi-square technique to test the dependence of the types of fraud
and the areas covered on the public sector organization in which they are
committed. The study establishes the dependence and calls for systematic
review of audit approach among others, to give special attention to fraud
dimensions and areas, drawing largely from behavioral, equity, sociological and
ethical principles.
Public demands and expectations at the grassroots for the provision of
essential social and basic services using government resources have continued
to be astronomically high, as manifested by rising pressure on the resource with
which to satisfy these. This assertion is not difficult to appreciate if we accept
the simple fact that the strength of any government depends on the success of its
policies, by its bureaucrats and technocrat. It is obvious that social, political and
economic development involves the effectiveness and efficiency of the
bureaucracy on one hand and the probity of the bureaucracy on one other.
Government exits to serve the interest of the citizens. There must therefore be a
way of holding the former accountable to the latter (Kamaluddeen, 2001).
Huge amount of money is lost through fraud or due to internal control
inadequacies and other criminal temptations, which to say the least, drains the
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nation’s meager resource through prudent means with its far-reaching and
attendant consequences on the development or even socio-economic or political
programmes of the nation. Thus, like Kamaludden (2001) observe billion of
Naira is lost in the public sector every year through fraudulent means. This, he
argues represents only the amount that is ferreted out and made public. Indeed
much more substantial or huge sums are lost in undetected frauds or those that
are for one reason or the other hushed up. Cases of frauds in the public sector
are so pronounced that everyone in every segment of the public service could
seem to be involved in one way or the other in some these nasty acts. This
assertion is not difficult to appreciate if we accept and adopt the simple
definition of fraud as any deliberate false act aimed at deceiving or harming any
party, individual or corporate body, in any manner.
Haladu (1991) puts it starkly when he observe that: The bane of financial
administration in Nigeria has since the oil boom years a period under which the
foregoing observation becomes relevant, has been the existences of structurally
weak control mechanism, which create a variety of loopholes that have tended
to facilitate and sustain corrupt practices. This is coupled, of course, with the
fact that there is a near total absence of the notion and ethnics of accountability
in the conduct of public affairs in the country. According to guardian newspaper
(2006) “Public Service Staff Audit”. The article referred to the report of the
Task Force on Staff Audit in the Federal ministries and about 500 Federal
Parastatals. Indeed, the setting up of the Task Force was necessitated by the
rampant discovery of ghost workers in the nominal roll of most government
extra-ministries departments, ministries and parastatals.
What came out of task Force and to what extent has it served, as adequate
preventive measure is not clear to many academic and political observes.
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According to Zayyad (1999) an estimated 8 billion has been lost in
abandoned projects during the two decades 1970 – 1990; this is not to talk of
what was lost in the last decade, through abandoned projects and other
fraudulent means. This is not to talk about billions of dollars recovered from
some public office holders who served Abatcha government and stories that
even the recovered amounts were not properly accounted for, let alone
punishing wrong doers.
What all these tend to expose is that there is a management or operational
problem in the Nigerian public sector in the financial or the accounting control
(Watoseninye, 2009). Thus, one needs no wonder too much to see how
devastatingly fraud have compromised the administrative competence,
performance capacity and general creditability of the public sector initial estates
of major projects become little fractions of ultimate costs paid, original cash
projections produce less than half of the benefits expected and projects which
seemed technically feasible and economically viable, turnout “white elephant”
if not, abandoned, with serious implications for growth and development (Bello,
2001).
1.2 Statement of the Problem
In every organizational system where management of resource is detached
from ownership, some means of holding the former accountable to the latter
becomes indispensable if credibility, accountability, and confidence are to be
lent to actions, (Kamaludden, 2001). Writers agree that this is the underlying
philosophy of auditing in the public service as well as most privately owned
organization. Ahmed (1997) for instance explains the purpose as serving to
restrict the tyrannical misuse of power by those to who such power delegated.
Ola (1999) also notes that the need for public financial accountability has led all
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sovereign nations to the application and use of audit as a most important
requirement of a political, conscious and generally alert and free or civilized
society.
1.3 The main objectives of the study
The main objectives is to:
Examine the fraud dimension in Nigerian public sector and establishing
whether these types of fraud being perpetrated differ from one public sector
organization to another.
Asset fraud preventive and control in the light of the character of these
public sector organizations, so that appropriate framework to restore sanity
and financial discipline can be notify.
Enable whether the major areas covered or involves in fraud in public sector
organizations, are different or similar to that of private organization to buildup an assessment.
1.4 Hypothesis
The study attempts to test the following hypotheses:
H01: The type of fraud committed is not dependent on the type of public sector
organization in which it is committed.
H1: The type of fraud committed is dependence on the type of public sector
organization in which it is committed.
H02: The major area of fraud is not dependence on the type of public sector
organization in which it is committed.
H1: The major area of fraud is dependence on the type of public sector
organization in which it is committed.
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1.5 Significant of the study
The study will be paramount importance to the industrial training fund,
Federal Ministry of Commerce and Industry, The Federal Government
respectively. The result of the finding will create conducive working
environment for employer/employee of the ITF. Enhance the awareness of staff
and employees with the respective to possible causes and effect of fraud and
thereby putting in place some preventive measures. It also provide a control
mechanism for the overseeing ministry i.e. Federal Ministry of Commerce and
Industry. It may also serve as reference materials for students who might be
interest in similar area of study.
1.6 Scope of the study
Our study had been restricted industrial training fund (ITF) Jos headquarter.
This is necessary to ensure an in-depth evaluation of the area under focus and
this is likely to give more accurate reliable and valid result.
This information was obtained on the number of fraud cases from cases from its
creation to present day (2015) within the Industrial Training Fund (ITF)
headquarters. The difference types of fraud amount of loss to the organization
(ITF) causes and level of effectiveness and preventive measures.
It is therefore reasonable to assume that the findings of this study are common
to other parastatals. However, caution must be exercise in generalizing findings
to parastatals without some modification.
1.7 Limitation of the Study
Many government makes several attempt to fight corruption and fraud to build a
free fraud organization so that the entire citizens may have confidence in public
sector.
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This research is just an assessment of fraud prevention and control in the public
offices. Moreover it is gives paucity of information and data on the performers
of the public sector, the study is expected to improve the knowledge on that
sector
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