EFFECTIVE INTERVAL CONTROL MEASURES AS TOOLS FOR TRANPARENCY, PROBITY AND ACCOUNTABILITY IN THE MANAGEMENT OF PUBLIC RESOURCES: (A CASE STUDY OF IGBO ETITI LOCAL GOVERNMENT COUNCIL OF ENUGU STATE)
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EFFECTIVE INTERVAL
CONTROL MEASURES AS TOOLS FOR TRANPARENCY, PROBITY AND ACCOUNTABILITY IN THE MANAGEMENT
OF PUBLIC RESOURCES: (A CASE STUDY OF IGBO ETITI LOCAL GOVERNMENT COUNCIL OF
ENUGU STATE)
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
The need for effective internal control measures as tools for
transparency, probity and accountability in the management of public resources
cannot be over emphasized. This starts from the fact that right from the
creation of the world, means in-seniority cannot be compromised. As a result of
that, there is need to make rules or laws guiding financial management or
internal control for proper discharge of responsibilities.
Thus, internal rules and regulations, financial laws,
constitutions, criminal coders, audit Act of 1958, appropriate Act, treasury
circulars and Audit circulars, represent steps forwards in trying to control
man’s management of public resources.
Corruption in Nigeria
has earned for itself official recognition. The level of corruption has become
so alarming that Nigeria’s reputation is being denoted abroad. This informs the
reasons for the formation of anti-corruption Act by the present government
headed by president Olusegun Obasanjo whose seal on the issue assisted in the
early drafting of the anti-corruption will which later passed into law, having
gone through the legislative process. The law to be cited as prohibition and
punishment of bribery, corruption and other related offences act is meant to
curb all forms of social, economic, politically corruption that has continually
(hinder the growth of the ratio
undermine public accountability, transparency and probity in the management of
public resources.
The act is to be implemented through independent corrupt
practices and Allied offences commission to be headed and composed of men and
women of high integrity and transparent honesty to be appointed by the
president, subject to the approval of the relational Assembly. However, experience
in the past has shown that more often than not, those entrusted with the duty
of enforcing or preserving any state law break and undermine such laws. This
has been described as ‘Nigerian” factor?
The installation of an efficient internal control mechanism
into the public sector management are important steps assuring the general
public the accountability and transparency of public officials for their
stewardship as custodians of public resources.
1.2
STATEMENT OF PROBLEMS
The term mismanagement, misappropriation, misapplication and
embezzlement are synonymous Mismanagement or misappropriate is the
unauthorized, improper and unlawful use of fund or other properties for purpose
other than that for which it is intended.
To give impression that fraud, embezzlement, misapplication
of public fund suit because of lack of internal control, in government as
claimed by the conference of the federal and state auditor general in Nigeria
in their preface to “exposure daft” on public sector, internal control standard
in May 1998 was uncharitable. The
internal auditor passes salaries vouchers. Therefore, fraud and mismanagement
of fraud does not exist because of absence of internal control but because
operators have decided to set the control aside for selfish immediate benefit,
irrespective of its consequence to a local government or the nation.
The following are issues, which lead to fraud and
misappropriation of local government(s) fund:
1. Borrowing of
funds for capital projects, only to be misappropriated by the three
wise-men-chairman, secretary and treasurer.
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