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An Evaluation Of Financial Malpractices On The Service Producing Companies Of Nigeria
[A Case study of P.H.C.N]
CHAPTER ONE -- [Total Page(s) 3]
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CHAPTER ONE
1.10 BACKGROUND TO THE STUDY
Financial malpractices are enemy to environment, environmental protection is not effective where financial malpractices in the public sector of an economy is pervasive and quality of life degraded. This study will give an overview of the Nigerian’s recent experience in the context of economic reform programme. It will discuss the possible cause and effect of financial malpractices and evaluate, such financial malpractices, which are seen to have rocked to socio-cultural, political practice and economic situation of the country. Corruption is an effort to secure wealth or power through illegal means for private and personal gain at the public expense for private benefit. Corruption as a phenomenon is a global problem and exists in a varying degree in different countries (Agbu, 2001). Corruption practices are not issues that just begin today but its history is as old as the world itself. (Lipset and Lenz,2010). However, the magnitude is not equal in every society as some countries are more corrupt than others. Orwell George in the widely read book; Animal farm: said “All animals are equal, but, some animals are more equal than the othersâ€.
The epileptic power supply in the economy reduces the living standard drastically and at the same time increase the cost of production in the country. In 2010, President Good Luck Jonathan revealed that generating power from generator add more than 40 percent to the cost of goods and services in Nigeria and that Nigerian spend about N1.95trillion yearly running generator. In a recent published report by British Broadcasting Corporation (BBC). It was said that Nigeria lost 15Billion Dollars per year to corruption which means between 2001-2011 Nigeria has lost 150Billion Dollars in a span of 10years. In the final report of the Nigeria corruption and survey study (June, 2011) the following institutions in Nigeria are rated based on their level of corruption.
RATING INSTITUTION
1 Nigerian police
2 National and state assembly
3 Political parties
4 Federal and state executives
5 P.H.C.N
Nigeria as a nation practices a mixed economic system whereby both the government and the private sector play an active role in the economy. However, despite the recent privatization policy of the government, the public sectors still hold a substantial part in the economy. A financial malpractice which is one of the most dangerous social ill of any economy is pandemic in Nigeria and has defied all necessary medicines. (Dike, 2009). For instance, to know how pervasive financial malpractices is, in our country the $12.4billion Gulf War oil windfall, during IBB regime far back 90’s, in 2007, the members of National Assembly decided to probe a contract of N23billion awarded by former President Olusegun Obasanjo, four days to the inauguration of Alhaji Umaru Musa Yar Adua. All this cited cases and many more nothing is been done about it. It is all about chop I chop game financial malpractices have been broadly defined as the use of personal deception in the misappropriation of funds of a given entity. It is also the violation of established rules for personal gain. (Sen,2008). Conclusively, by the end of the evaluation of financial malpractice in the service producing companies of Nigeria which is to be carried out and discussed by this study, a lot of suggested solutions will be given to reduce the financial malpractices and corruption at large which is the bane of Nigerian economy. This will also impact to the future positive change in the performance of the private and public sector of the economy.
1.11 PROBLEM OF THE STUDY
The problem in the evaluation of financial malpractices in the service companies in Nigeria economy is that, corruption has eaten deeply in to the society at large. The Nigerians that are occupying the top political positions in the country are, highly corrupt. During the inaugural, speech of the former President Olusegun Obasanjo, He vowed, to tackle, financial malpractice, and he established different, commissions, act and laws in that respect e.g. EFCC, ICPC, money, laundering act e.t.c. he said “No society will achieve its potential where it allow financial malpractices its full blown cancer as it is in Nigeriaâ€. (Dike,2009). Also, the leaders of our government parastals that are, supposed to be the machinery against the menace of financial malpractices are not only involved in it but ranked as the 4th most corrupt in the country by the Nigerian Corruption and survey study.
This research study will solve the problems identified as highlighted in the background to the study.
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTThe recent occurrence of financial malpractices in the service producing companies in Nigeria has made the country economic condition to be deteriorating on a geometrical bases, this has really caused an adverse effect on the entire economy. Financial malpractices are stooge that has to be up rooted and totally eradicated; else the entire sector of the economy will be eaten up by the menace.This research study is embarked upon to evaluate the effect of financial malpractice on the servic ... Continue reading---
