EFFECTS OF ETHNIC BASE RECRUITMENT PROCEDURE IN THE NIGERIAN PUBLIC SECTOR ON INTERNAL CONTROL AND FRAUD PREVENTION AND DETECTION | Ph.D THESIS

INTRODUCTION

The primary responsibility of fraud control rests with management and one of the ways by which management can discharge this responsibility is by instituting an effective internal control system. This is because; no amount of external control will make an entity administratively efficient unless it is complemented with internal control. For an internal control system to effectively prevent and detect fraud, there is a need for a continuous internal audit carried on by the staff itself, by means of which the work of each individual is independently checked by other members of the staff.

From the above, it is evident that the human element is crucial to the effective prevention and detection of fraud hence the need to recognize human dimension to internal control as far as addressing the issue of fraud is concerned in any organization. This being the case, there is need for a strong, constructive personnel management policy that can provide a very strong internal control and deterrence. This policy should include a structured management philosophy covering rules of conduct relating to the employment life cycle from recruitment, through continued education, to employment termination (Osasebor, 2005). The searchlight should not only be on the personnel already in the system, but also on the would be staff.

The best protection against public sector fraud lies in effective and enforceable codes, internal controls and vigilant self-regulation. All criminal behaviour requires both motive and opportunity coinciding before a crime can
occur. Confirming this, Pomeranz (2004) says that the late criminologist, Donald Cressey, explained that before fraud can take place there must be an item worth stealing; a potential perpetrator willing to steal; and an opportunity for the crime to take place. To a large extent, motives such as financial gain, greed, personal difficulties, low loyalty, revenge and boredom, cannot be controlled, but opportunity to commit fraud may be limited through various crime prevention measures, including effective internal control and risk management.

There are various risks involved which point to the likelihood of fraud. These include personnel, cultural, structural and business risks (Researcher, 1996).

Personnel screening should not only be focused on entry controls alone, focus of surveillance ought to shift to the monitoring of people’s conduct while transacting business and include their domestic lifestyles. If this is not done, incidences of fraud will not abate.    

STATEMENT OF THE PROBLEM

A diligent search through literature largely indicates that Nigerian scholars, writers and researchers have developed theories, principles and philosophies in attempts to proffer solutions to the problems of corruption in Nigeria (Chukwu, 1999; Akaru, 2001, Odey, 2001; Ekumankama, 2002; Osisioma, 2002; Bambelle, 2003; Iorsase, 2004; Bassey, 2005; Dandago and Hamid, 2005; Kantudu, 2005) without particular reverence to the effect of the recruitment procedure and personnel vetting to effective internal control and fraud prevention and management.

The study intends to create a new platform for the fight against public sector fraud in Nigeria through personnel vetting of intending and existing staff. It will also create awareness and raise the consciousness of employers of labour on the impact of human dimension to internal control and fraud prevention.

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