TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.0 Background
of Study
1.1 Historical Background of PHCN
1.2 Statement of Problem
1.3 Purpose of Study
1.4 Statement of Research Question
1.5 Restatement of Research Hypotheses
1.6 Research Methodology
1.7 Scope and Limitation
1.8 Plan of
Study
1.9 Definition of Terms
CHAPTER TWO
LITERATURE
REVIEW
2.1 Introduction
2.2 Causes of Fraud in PHCN
2.3 Types
of Fraud
2.4 Control
2.5
Responsibility
For Customer Public Money
2.6 Security
in Strong Rooms and Cash Offices
2.7
Fraud Perpetrated From Salaries And Wages
2.8 Fraud
Perpetrated From Contract
2.9 Fraud Perpetrated From Stores
2.10 Fraud Perpetrated From Inputting Wrong Data
CHAPTER THREE
RESEARCH
METHODOLOGY
3.1 Research Design
3.2 Population of Study
3.3 Sampling Procedure/Technique
3.4 Data Collection Instruments
3.5 Method of Data Collection
3.6 Restatement of
Research Hypotheses
3.7 Method
of Data Analysis
CHAPTER FOUR
DATA
PRESENTATION, ANAYSIS INTERPRETATION
4.1 Characteristics of the Sample
4.2 Analysis
of Personal Data
4.3 Analysis
of Research Questions
4.4 Testing of Hypothesis
CHAPTER FIVE
SUMMARY,
CONCLUSION AND RECOMMENDCHAPTER FIVE
5.1 Summary
5.2 Conclusions
5.3 Recommendations
APPENDIX
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND
OF STUDY
Fraud is number one enemy of the business world. It is in shipping,
transaction in banking, in the export trade, in government parastatals. It is
universal. It is a complex phenomenon. Tracing the Nigeria economy from the
boom era, which is 1970's to the period of economic depression 1980's to date,
one cannot but want to know the causes of the sharp fall in the economy. One of
the identified causes of the down in the economy is fraud particularly in
government "establishment. This research work will focus in critical analyses of the
causes of fraud, ways of detecting and preventing future. The paper will also
trace the historical background of Nigerian economy.
The discovery of oil in 1956 gradually erased the earlier dependence on
exportation of materials, farm produce and other importation of commodities.
The influx of revenue generated from oil was so glaring that some government
officials felt it was ideal to share the 'booty' or 'national cake' without
thinking of replacement, hence the different kind of frauds do occur.
This downward trends notwithstanding, the Nigerians still went on
defrauding the government because they were already used to luxury. They found
it very difficult to adjust or change their standard of living.
1.1 HISTORICAL
BACKGROUND OF PHCN
Electric power development in Nigeria started towards the closing years of
the last century when the first generating plant was installed (60kw) in the
city of Lagos in 1898. From this date onwards
and until 1950, the pattern of electricity development was the form of
individual electricity undertaking set up at various towns, some of them by the
Federal Government under jurisdiction of the public works department and some
by the native authorities and one or two large municipal authorities.
Electricity Corporation of Nigeria (ECN)
In 1950, order to
integrated power development and make it effective, the government passed the
Electricity Corporation of Nigeria ordinance No 15 of 1950 This ordinance
brought under one control the- Electricity undertaking section of the
public works department and all those
undertakings which were- under native authority or municipal ownership and
control,
The Electricity
Corporation of Nigeria usually referred to as ECN, then became history body
responsibility for generation, transmission, distribution and sale of electricity to all consumers in Nigeria.
Niger Dams Authority (NDA)
The Niger Dams Authority was
established by the Act of parliament in 1962. The authority was. responsible for the construction
and maintenance of dams- and other works on the River Niger and elsewhere,
generating electricity by means of water power, improving navigation and
promoting fisheries and irrigation. Construction of the kanji Dam which began
in March 1964 was completed on schedule in December 1968.
National Electric Power Authority (NEPA) now Power Hold Company of Nigeria
In September 1969, the Federal
military government deeded to merge the Electricity Corporation of Nigeria and
the Niger Dams Authority into a single body.
A year tater, a Canadian firm of
consultant "shawmont Limited”: was appointed to look into the technical
details of the merger, Tile report was submitted in November 1971. By Decree No. 24
of June 29th 1972 (which
became effective from 1st April 1972}
the electricity corporation of Nigeria
(ECN) and the Niger Dams Authority (NDA) were merged to become the National
Electric Power
Authority (NEPA). The actual merger did not take place until 6th
January 1973 when a General Manager
was appointed. The decree stipulates that
the authority is to develop and- maintain an efficient coordination and
economical system of electricity supply far all parts of the federation.
What is currently
called- Power Holding Company of Nigeria (PHCN) was formally known as National
Electric Power Authority (NEPA).
The affair of the
authority is run by a nine member board whose members and chairman are
appointed by the Federal Government. The authority is also accountable to the
Federal government through the Federal Ministry of Mines Power and steel. The
board is to lay dawn the authority and the chief executive (General Manager)
sees to it that all decisions of the board are efficiency executed.
The day to day
management of the affairs is in the hands of the General Manager now designated
as managing director. The activities of the managing director is grouped under
four functional divisions, each headed by an executive directors namely:
Executive
Director (Generation)
Executive Director
(Engineering, distribution & sales}
Executive- Director (Transmission)
Executive Director (Administration
& Finance)
1.2 STATEMENT OF
PROBLEM
In order to fully appreciate the
adverse effect of fraud on PHCN and other government establishment, it will be
appreciated to visualize the consequences of fraud on our country as an entity.
The state of country's economy today is
chaotic and deplorable. This adverse situation of the economy can rightly be
said to have had its roots in the fraudulent commercial practices by
businessmen, past politicians and public servants.
Imported goods were over invoiced to
the selfish advantage of a few individual resulting to serious depletion of our
foreign exchange reserves, consequently, the country is finding it difficult to
meet all her foreign exchange obligations, resulting in mass unemployment and
upsurge in armed robbery cases. If all these adversaries can be suffered by a
giant country like ours as a side effect of fraud, then one can imagine the
ravaging effect that can have on PHCN or any other
government establishment.
The prime aim of any business concern
is not only to render services but also to make reasonable returns on its
investments. In recent times the rate and frequency at which. PHCN distributes
transformers, aluminums and conductors are stolen by the public with suspected
connivance to the authority staff, have been a cause of great concern of
management. Apart from the apparent loss of revenue, the imaged and goodwill of
the authority is jeopardized.
1.3 PURPOSE OF STUDY
The purposes of this study are;
1. To critically analyze the
causes of fraud in government organization particularly PHCN.
3.
To
check if there is any control in place as to prevent fraud at PHCN
3. To identify any loopholes
in government rules, sign and circular that can lead to perpetration of fraud.
4.
To
carefully look into the reported cases.
5.
To
pinpoint way of eradicating fraudulent activities in government most especially PHCN.
We should not fold
our arms and allow the situation to continue Like that without making efforts
to reduce the occurrence of fraud and possibly find a lasting solution to the
problems. If a concrete step is not taking now, we may find out one day that
PHCN viability has been completely
eroded,
1.4 STATEMENT OF RESEARCH QUESTION
1. What are the causes of fraud?
2. Area where frauds can easily be
perpetrated and
detected?
3. What are the various problems imitating
against prevention and detection of
fraud in PHCN?
4. Will constant auditing by internal
auditor prevent fraud?
5.
Can the relationship between accounting and re-organizing
the office of the head of audit department have effect in preventing and
detecting fraud in PHCN?
6. With prompt payment of workers salaries
and wages be attributed to reduction
of fraud cases in- PHCN?
1.5 RESTATEMENT OF
RESEARCH HYPOTHESES
Hypothesis One
Null Hypothesis (H0): Introduction of
seminars and other awareness programme does not reduce fraud in the mind of
PHCN staff.
Alternative
Hypothesis (H1): Introduction of seminars and other awareness programmes
help to reduce fraud in the mind of PHCN staff.
Hypothesis two
Null Hypothesis (H0}:
Over the year both the value and volume of fraud cases recorded in the PHCN Plc have been on the increase.
Alternative
Hypothesis (H1): Over the year, both the value and volume of fraud cases recorded in the PHCN Plc have been reduced.
1.6 RESEARCH METHODOLOGY
The research will
be carried out in four different department of the authority. These departments are:
1. Account department
2. Audit Department
3. Engineering department
4. Administrative department
This will be by
means of questionnaire, oral interviews and secondary data collected from them.
Eighteen officers from the rank of officer IV to principal manager will be
needed for the questionnaire. Special reference will be given to officers
directly involved with cash officer, final account, internal audit and losses and
investigation section I any of the different departments.
Questionnaires
will be administered individually in the place of work to the officers by
personal contact. This process is hoped to last for five days. The
questionnaire is divided into eleven sections. Section 1-4 contains personal
data of the officer concerned. 5-7 are concerned with causes of fraud, 8 deals
with area where fraud are perpetrated and how to detect them, section 9
critises the actions taken after the detection, while section 10 and 11 are concerned
with preventive measures already in existence and suggestion for new ones.
1.7 SCOPE AND
LIMITATION
The scope of this
study will cover PHCN's accounting system with reference to other government
establishments. One of the constraints of the research work has been
non-availability of the time required to conduct an in-dept research. Limited financial resource is another constraints which
restrict from making more in-dept research. Poor response from respondents will
also contributes to the limit of this research.
1.8 PLAN
OF STUDY
There will are five chapters in all;
the next chapter and is devoted to the review of literatures and building of
theoretical frame work in detail. In the third chapter, I intend to report on
research survey and methodology and the analysis of samples adopted in
collection of data.
Chapter four will concentrate on the
analysis of the research data collected from primary: and secondary: sources,
references to hypothesis and testing of hypothesis.
1.9 DEFINITION OF TERMS
Fraud: Refers
to an intentional act by one or more individual among management, corporate or
third parties which results in a misrepresentation of financial statement.
Detect: To
find or discover the present of something by using equipment or making
investment.
Prevent: To ensure that it does not happen.
Receipt: The
act or acts of receiving anything to write acknowledgement of payment of a
bill.
Revenue: Total
current income of a government receipt duties on import income from any form of
property.
Bin-card: Is
an effective ready reference as to what is the quantity of a particular
material that is in the store at any particular time.
Cheque: Is a form on which you write an
amount of money and who it is to be paid to.
Audit: Is described as the independent examination of and
expression of opinion on the financial statements of an enterprise by an
appointed auditor in pursuance of that appointment and in compliance with any
relevant statutory obligation.
Finally, chapter five will be on the
summary, conclusion and suggestions. Also recommendations and contribution knowledge shall be
made on the findings after thorough research has been made.
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