SELF
– POLICING IN THE NIGERIAN PUBLIC SECTOR: PERSONNEL VETTING AND INTERNAL
CONTROL INTERFACE WITH FRAUD
ABSTRACT
This
paper addressed the effect of ethnic base recruitment procedure in the Nigerian
public sector on internal control and fraud prevention and detection. The paper
analyzed personnel vetting of intending and existing staff and its implications
on internal control effectiveness which is a panacea for fraud prevention and
detection and concludes that human dimension needs to be recognized as far as
the issue of fraud is concerned and that the weighing of area of origin above
merit and competence cannot be divorced from the present Nigeria’s economic and
political calamities resulting from financial improprieties in the public
sector.
Consequently, the paper recommends
that the best protection against public sector fraud lies in effective and
enforceable codes, internal controls and vigilant self-regulation and this
depends on the quality of the personnel; personnel vetting, vacation and job
rotation policies can be effective in determining potential perpetrators of
fraud; and the use of ethnic base instead of merit and competence should be
discouraged rather if federal character must be considered let the best from
each of the geographical spread be employed or appointed through solicited
applications and interviews.
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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