Vacation
and job rotation policies can be effective in deterring fraud on two counts.
First, they both prevent any one employee from exercising exclusive control
over specific functions or applications. Second, they deter potential
perpetrators. It is, therefore, necessary that all employees, particularly
those in positions of trust, be required to take at least two consecutive
weeks’ holiday, ideally including a month-end or quarter-end. Annual leave
should be mandatory. During their absence, any discrepancies must be followed
up and accounted for by the replacement of superior officer.
Osasebor
(2005) quoting Cohen and Felson says that the principle that crime follows
opportunity has become established wisdom in criminology and opportunity
reduction has become one of the fundamental principles of crime prevention.
The
issue of addressing fraud so as to reduce it to the barest minimum possible can
be done on two fronts. The first is taking steps at ensuring that all those
with criminal tendencies are not at all employed. The second is to put in place
control measures such that the work of one person is subordinated to that of
another person. This reduces to a very large extent, the opportunity to commit
fraud. It is an established fact that where even an employee with a fraudulent
intention knows that he is constantly under surveillance, he will be deterred
from making any attempt. On the other hand, an otherwise honest employee may be
tempted to commit fraud simply because the opportunities giving rise to loopholes
have been created. The only way to block any opportunity to commit fraud is to
institute effective internal control measures. It is not enough to institute
them – they must be implemented.
FINDINGS
From
the foregoing analysis, the following findings were discovered:
a.
The
primary responsibility for detecting and preventing fraud rests with management
and one of the ways of discharging this responsibility is by instituting an
effective internal control system.
b.
No
amount of external control will make an entity administratively efficient
unless it is complemented with internal control.
c.
For
an internal control system to effectively prevent and detect fraud, there is a
need for a continuous internal audit carried out by the staff.
d.
Since
internal audit is carried out by staff, human dimension to internal control
need to be recognized as far as addressing the issue of fraud is concerned in
any organization, but this is not the case in the Nigerian public sector.
e.
The
rule of conduct relating to employment life cycle from recruitment, through
continued education, to employment termination in Nigeria is not being
followed.
f.
Nigeria
Civil Service vacancies are not normally advertised, recruiting bodies rely
more on unsolicited applications. Interviews are “education
qualification-oriented” and its duration is usually short and, as a result, no
determined attempt is made to discover traits, interests and abilities.
g.
The
weighing of area of origin above merit and competence in Nigeria cannot be
divorced from her present economic and political calamities.
h.
There
is no strict compliance to vacation and job rotation policies, where they
exist, in Nigeria, particularly among those in positions of trust they are not
being adhered to.
CONCLUSION
From
the foregoing findings, the study has further revealed that people are the
decision variable between success or failure of any organization. Therefore,
human dimension to internal control need to be recognized as far as addressing
the issue of fraud is concerned in the public sector and infact in every
organization.
RECOMMENDATION
Based
on the findings and conclusion drawn, the following recommendations are made:
i.
There is the need for a strong, constructive
personnel management policy that can provide effective internal control and
fraud deterrence.
ii. The rules of conduct relating to the
employment life cycle from recruitment, through continued education, to
employment termination in Nigeria should be strictly adhered to. The
searchlight should not only be done on the personnel already in the system, but
also on the would be staff.
iii.
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.
iv.
The
best protection against public sector fraud lies in effective and enforceable
codes, internal controls and vigilant self-regulation.
v.
A
policy on recruitment should be on the recruitment of the best possible
personnel for all job positions, because staff has been found to be the
decision variable between the success or failure of any organization.
vi.
Vacation
and job rotation policies can be effective in deterring potential perpetrators
and prevent any one employee from exercising exclusive control specific
functions or applications.
vii.
Employments
/Appointments with the Civil Service should be weighted to ensure that
positions whose responsibilities are sensitive and could affect the economic
survival of the nation are occupied by merit system that takes into consideration,
age, maturity, exposure, experience, paper qualification, general aptitude and
the like. Positions of less significance could be filled by less-considerations
in order to make room for equity which quota system and federal character tend
to achieve.
Excessive political
influence in the recruitment process such as considerations of tribe, nepotism,
statism or quota system should be played down by such simple designs as
removing from all application forms for jobs such clauses as “State of origin”
“Town,” or “Local Government Area”. Such details could be got from candidates
after they have secured appointments if such data is desirable.