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
2.2.1 Congenital Psychological
Maladjustments
2.2.2 Get- Rich Quick Philosophy
of Life
2.2.3 Music of Authority and Abandonment of Responsibility
2.2.4 Weak Supervision and Control
System in the organization
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
TO COMPUTER
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
3.2 POPULATION OF STUDY
3.3 SAMPLING
PROCEDURE/TECHNIQUE
3.3.1 SAMPLE SIZE
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
BIBLIOGRAPHY:QUESTIONNAIRE
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 not withstanding, 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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