OF THE STUDY
crimes has been described as the manifestation of a criminal act done either
solely or in an organized manner with or without associates or groups, with an
intent to earn wealth through illegal means, carrying out of illicit activities
which violate the laws of the land and other regulating statutory provisions
governing the economic activities of the government and its administration. It
can erode the confidence in the system of a country; threaten the integrity of
government, its programmes and institutions, thereby undermining national
security, law and order. On the whole, the overwhelming presence of economic
crimes can make such a country unattractive to investors (Okolie 2006).
of the sophistication of the methods adopted by criminals, the common
characteristics of the crime include cheating, lying and stealing. Corruption
is a menace in the public sector, although is a global malaise, the extent of
its reach in the public sector was tragically stupendous. All indicators showed
that the spread of this cancer had become frightening.
menace of corruption leads to slow movement of files in offices, police
extortion at tollgates and slow traffics on the highways, port congestion,
queues at passport offices and gas stations, ghost workers syndrome, election
irregularities, among others. Even the mad people on the street recognize the
havoc caused by corruption – the funds allocated for their welfare disappear
into the thin air.
is endemic in all governments, and that it is not peculiar to any continent,
region and ethnic group. Corruption is found in democratic and dictatorial
politics; feudal, capitalist and socialist economies. Corruption practices did not begin today; the
history is as old as the world. Ancient civilizations have traces of widespread
illegality and corruption. (Lipset and Lenz 2000).
price of corruption has been extremely high. The economic, political, social
and moral bases of the country have been severely eroded and degraded. It has
brought us near the brink and almost rendered us helpless and hopeless. It
became imperative that something drastic had to be done to arrest the rot. This
impelled the commitment of the president to tackle corruption head – on. (ICPC
OF RESEARCH PROBLEM
government insincerity in fighting corruption and economic crimes in the public
sector, civil servants in the ministry of finance take advantage of looting the
treasury. The civil servants perpetrate these act because they are connected to
the top government functionary and thereby they were spared from been punished.
in the duties of the anti – graft agencies such as independent and corrupt
practices commission and economic financial crimes commission in combating the
scourge. The anti – graft agencies are been used to witch – hunt any civil
servants that do not dance to their tune by the government in power. The
independence of the anti – graft agencies to punish corrupt civil servants in
the ministry has been distorted.
and underutilization of public funds surface as a result of corruption and
economic crimes. Due to corruption and economic crimes in the public sector,
the ministry have not be able to perform efficiently and proper utilization of
the resources that have been assigned to their ministry.
by officials in the public sector with foreigners to perpetrate corruption and
found safe refuge and acceptance abroad. The officials in the public sector
have engaged in this act now. This has caused the resources provided to the
public sector to be mis – spent and misplaced.
OF THE STUDY
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
measures by government in curbing corruption and economic crimes in the public
the role-played by anti – graft agencies.
the effectiveness and utilization of public funds by ministry.
the checks and balances in ministry on public funds.
hypotheses are formulated for testing in the course of this research.
Hypothesis (H0) – The
measures by government and anti – graft agencies in curbing corruption and economic
crimes does not eliminate crimes in the public sector.
Alternative Hypotheses (H1)
- The measures by
government and anti – graft agencies in curbing corruption and economic crimes
eliminate crimes in the public sector.
– The checks and balances
in ministry does not result to the effectiveness and utilization of public
H1 – The checks and balances in ministry result to
effectiveness and utilization of public funds.
OF THE STUDY
work focus on corruption and economic crimes, its possible effect in the public
sector. The time frame covers from 1991 to 2008 using ministry of finance and
to know the possible effect of corruption and economic crimes in there. This is
necessary because it takes an equal amount of time from the last years of
military regime and an equal amount of time from the first few years of the
present democratic the economic and financial crimes commission and independent
corrupt practices commission were established.
OF THE STUDY
and economic crimes have eaten into the fabrics of the public sector and it has
been taken as business as usual. These deadly acts had been perpetrated without
any regret, since these crimes started from the top. It is in this light the
study is carried out to find a means of drastically reducing the ugly menace
called corruption and economic crimes.
study will be beneficial to civil servants in the public sector, relevant to
law enforcement agencies, public office holders, researchers, bankers,
accountants and the general public. This will help to unfold perpetrators of
such crimes and how these crimes are perpetrated.
study will also serve as a basis for putting into place various procedures and
policies, which will help, curb this dreaded monster (corruption and economic
crimes). This development would help to bring sanctity and sanity in the public
sector and re – introduce confidence in the public sector.
OF THE STUDY
As this is a
relatively new era, not much has been carried out due to insincerity of purpose
amongst writers and non – availability of important literature works and text.
Due to the sensitive nature of the study, this would place a constraint on the
method analysis available for this study.
cooperation by the officers in the ministry also posed a challenge in this
research works. Despite the shortcomings, this research is aimed at carrying
out a comprehensive and empirical work that will meet the yearnings of people.
1.8 HISTORICAL BACKGROUND OF THE ORGANIZATION
FEDERAL MINISTRY OF FINANCE
The Federal Ministry of Finance was established in 1958 by
the finance (control and management) ordinance to replace the then Finance
Department. The Ordinance conferred on the Ministry the responsibility for the
control and management of the public finance of the federation.
In the 1980s, attempts were made to re – organize the finance
ministry either by excising some of it departments or ceding others to it. For
example, in 1980 the budget office became an Extra – Ministerial Department
under the Executive Office of the President and headed by a Special Adviser to
the President on Budget matters. From 1987, the Budget Office functioned once
again under the Ministry of Finance and was supervised by its own permanent
security. In 1988, the office was merged with the ministry of national planning
to form the office of budget and planning in the presidency under a ministry of
state. Then in 1991, the budget office was excised again from the ministry of
budget and planning and returned to the ministry of finance where it is to date.
In the case of the customs, it was a Department in the
Ministry of Finance until 1985 when it was transferred to the Ministry of
internal affairs where it was managed under the customs, Immigration and
Prisons Services Board. However, in 1992, customs was returned to the
jurisdiction of the Ministry of Finance.
With regard to the Development Aid Department, it was
transferred in 1988 from the National Planning to form the Federal Ministry of
Finance and Economic Department. The Development Aid Department was eventually
returned to National Planning in 1991.
Functions of the Ministry
The following are the functions of the federal ministry of
annual estimates of revenue and expenditure for the federal government.
policies on fiscal and monetary matters.
domestic and external financial institutions through both internal and external
financial institutions for development purposes.
adequate foreign exchange reserves aimed at ensuring a healthy balance of payment
internal and external value and stability of the Nigerian currency, monitoring
government revenue from oil and non – oil resources.
revenue allocation matters.
1.9 DEFINITION OF TERMS
PUBLIC SECTOR: This
include all organization set up by the government to satisfy human want to take
care of specific want, specific needs of the public without profile purpose.
DUE PROCESS: This refers
to the mechanism, procedure and set of standards applied to public sector
procurement of goods and services to ensure budget discipline.
FRAUD: This is defined
as an irregularity of impropriety involving the use of deception to obtain an
unjust or illegal financial advantage (Okolie 2006).
CRIMES: This can be
defined as a dishonest, violent, or immoral action that can be punished by law.
ECONOMIC: According to
Longman dictionary of contemporary English, defined economic as the system by
which a country’s money and goods are produced and used.
management of money especially money controlled by a government, company or
TRANSPARENCY: As used in
the humanities and in a social context more generally, implies openness in
every area of business or globally.
is the misuse of public fund especially by public office holder in the
ETHICAL VALUE: These are
those qualities, which ensure that a member behaves with integrity in all
professional, business and financial relationships and that he or she should
strive for objectivity in all professional and business judgments.
ACCOUNTABILITY: This is
the true openness or giving account of what has been expended by the public
FAVORITISM: This is a
mechanism of power abuse implying a highly biased distribution of state
PROCUREMENT: This is the
acquisition of goods and/or services at the best possible total cost of
ownership, in the right quantity and quality.
TREASURY: This is the
keeping of accounts of government funds and investment.
BUDGET DISCIPLINE: This
involves strict compliance with all the variables about the budget.
CONTRACT: This is a
project executed by persons or person normally evidenced by an agreement
between two or more parties.
Okolie, A.O (2006): Techniques of
financial investigations (A practical guide) Progress Printing Associates.
Aigbokhaevbolo, O.M. and Ofanson, E.J.
(2002): Project Work, Ejodamen Publishers.
Nigerian Federal Ministry of Finance:
Figures at www.fmf.gov.ng/detail.php?link=facview.
Independent Corrupt Practices and Other
related Offences Commission Act 2000.
Economic and Financial Crime Commission
Lipset et al (2000): Corruption,
Culture, and Markets, in Culture matters, New York Basic Books.