ABSTRACT

This work titled “Fraud Control in the Local Government System; Challenges and Prospects; A Study of Ebonyi Local Government Area (2003-2014)” was aimed at ascertaining the extent to which Ebonyi Local Government Council keep adequate and reliable records of its activities, examining the extent to which auditing can help in minimizing fraud and mismanagement of resources among the local government workforce in Ebonyi Local Government Area among others. The research was motivated by the inability of the Ebonyi Local Government Council to ensure proper auditing as to limit the rate of fraud in the council. Expectancy theory propounded by Victor Vroom in 1960 was adopted to theoretically guide the study. A survey research design was adopted to study a population of 532 which was reduced using Taro Yamane’s formula to a simple size of 228. Simple random sampling and stratified sampling techniques were used and data were collected from primary and secondary sources. Structured questionnaire instrument was used for data collection while simple percentage method and frequency distribution tables were used to analyze the data gotten from the questionnaire instrument. Chi-square statiacted was used for testing the hypothesis that guided the study. This study however, revealed that Ebonyi Local Government Council keeps adequate and reliable records of its activities through the use of computers and certified receipts, the fraudulent behaviours of revenue officers such as falsification of receipts, non-remittance of collected revenue among others constitute major challenges of Ebonyi Local government council among others. The implication is that is computers and certified revenue receipts are used; fraud can be controlled in the local government system. Hence, this study recommended that Nigerian local government system should adopt the use of computers and certified receipts to effectively keep adequate records; fraudulent behaviours of revenue officers should be curbed in order to control fraud in the local government system among others.

TABLE OF CONTENTS  vii

LIST OF TABLES  ix

CHAPTER ONE: INTRODUCTION   1

1.1      Background of the Study  1

1.2      Statement of  the Problem   3

1.3      Objectives of the Study  4

1.4      Research Hypotheses  5

1.5      Significance of the Study  5

1.6      Scope and Limitations of the Study  6

1.7      Theoretical Framework  6

1.8      Operationalization of the  Key Concepts  7

CHAPATER TWO: REVIEW OF RELATED LITERATURE   8

2.1    The Concept of Local Government  8

2.2   Rationale for the Existence of Local government System in Nigeria  12

2.3   The Concept of Fraud  16

2.4    Evolution of Fraud t in Nigeria  18

2.5    Fraudulent Practices in Nigerian Local Government System   22

2.6    Main causes of Fraud in Nigeria Local Government System   25

2.7     Strategies for Fraud Prevention and Control in Nigeria Local  Government System   28

2.8     Challenges of Fraud control in the local Government system in  Nigeria  32

2.9    Relevance of Fraud Control in Nigerian Local Government System   34

CHAPTER THREE: RESEARCH METHODOLOGY   36

3.1      Research Design  36

3.2      Area of the Study  36

3.3      Population of the Study  37

3.4      Sample Size And Sampling Technique  37

3.5     Sources of Data collection  40

3.6      Instrument for Data collection  40

3.7      Method Of Data Collection  41

3.8      Validity and Reliability of the Instrument  41

3.9      Method Of Data Analysis  42

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS   43

4.1 Data Presentation  43

4.2 Test Of Hypotheses  52

4.3 Major Findings  57

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS   60

5.1   Summary of Findings  60

5.2    Conclusion  61