Financial Crime and Local Government Productivity in Rivers State

Biobele Richards Briggs,Lilian Okorite Nkanbia-Davies,Lenu Goodluck Wege

doi:10.33094/26410265.2020.23.47.60

Biobele Richards Briggs, Lilian Okorite Nkanbia-Davies + Show 1 more

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https://doi.org/10.33094/26410265.2020.23.47.60

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Abstract

The study investigated the effect of financial crime on local government productivity in Rivers State. The study specifically ascertained the effect of financial crime on effective service delivery and human resource administration in Rivers State local government councils. The predominant factors that induced financial crime in Rivers State local government councils were also identified. Descriptive survey design was employed with purposive sampling drawn from eight local government councils. A total of 220 questionnaires were distributed to the eight local government councils and of the 220, 208 representing 95% were returned and used. The data were analyzed using simple percentages for descriptive analysis and Chi-square (χ2) for hypotheses testing. The findings revealed that financial crime significantly and negatively influenced effective service delivery and human resource administration in Rivers State local government councils. It was further revealed that greed, opportunity and need induced financial crime in Rivers State local government councils. To stimulate employee commitment and effective service delivery in Rivers State local government councils, it was recommended that local government employees should be properly compensated and the institutional and juridical mechanisms (whether on exclusive, concurrent and residual lists) should be strengthened for accountability and deterrence of financial crime.

Highlights

Socio-economic advances, improved communication, technological development and global activities invoke enormous opportunities for financial crime which is widespread in the private and public sectors and across countries
Objectives of the Study The main aim of this study is to investigate the effect of financial crime on local government productivity in Rivers State
Financial crime is a crime against property that is pecuniary in nature comprising diversion of funds, theft, embezzlement, financial misappropriation, disregard to due process and abuse of public authority for private gain

Summary

Introduction

Socio-economic advances, improved communication, technological development and global activities invoke enormous opportunities for financial crime which is widespread in the private and public sectors and across countries. Financial crime is expensive and negatively affects emerging and developing countries (Saddiq & Abu Bakar, 2019). It is a compound economic, social and political virus that impedes the performance of the private and public sectors which adversely impact on a nation’s productivity and economic development (Kasum, 2009). According to evidence paper on corruption by the Department for International Development (2015) corruption and financial crime is caused by weak public sector institutional framework, bureaucratic incentives and the involvement of government in the economy. In the Nigerian public sector, Owolabi (2007) identifies aggregate income inequalities and poverty, heavy imposition of burden on small and medium scaled enterprises, discrimination against honest foreign businesses and reduction of domestic savings and investments as fundamental costs of financial crime

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