Abstract

Corruption and Embezzlement are very costly and weigh heavily on the economy and the working of justice and are a serious handicap to the harmonious functioning of the economy. This study sought out to investigate the impact of corruption on the effectiveness of the public sector case of the Cameroon GCE Board.  the study employed the descriptive survey study design with a total sample size of 80, purposive sampling technique was employed in this study.

Primary data and secondary data were collected for the study using 60 questionnaires as method of data collection.  Also, data was analyze using SPSS version 21, data was equally presented in tables and chart. The result of the findings found that, those practicing corruption make huge economic and social gain from the practice, poverty account for high rate of increasing level of embezzlement and corruption in public sector, the government terminate contract with those involved corruption practices, Also, the study concluded that heavy sanctions are given to perpetrators of corruption at the level of the board, low salaries and little or no allowances paid to workers at the public sectors, no commission set to follow up bad practices within GCB Board.

The study went further to recommends that the ministry of finance and other ministry should work in hand to increase the salaries of workers in the public services and timely payment of these workers in the public service so as to increase their salaries, an external committee should be set up that follow up the activities of those at the public sector such as their assets and their transaction in at the board.

CHAPTER ONE

INTRODUCTION

1.1 Background To The Study

The corruption of public funds is associated with the misuse and potential loss of funds and therefore raises questions about the integrity of people in charge of funds. In the challenge of corruption and economic crime (embezzlement), analyzed that all political systems need to mediate the relationship between private wealth and public power, Susan Rose Ackerman (2004: 1) Those that fail risk of dysfunctional government and captured by wealth interest. Embezzlement is a symptom of such failure with private willingness to pay trumping public goals, private individuals and business firm to get routine services and to get the head of bureaucratic queue.(Susan 2004:4).  Misappropriation constitutes a deliberate act of the misuse of money.

It is the channeling of money and other assets allocated for a specific official purpose for either personal use or for what is not meant for. Such actions constitute an unauthorized spending of money or other assets for personal gain. Misappropriation is therefore the highest type of fraud in the public sector as people intentionally divert public fund for personal aggrandizement without any fear or negative conscience [Ibanichuka and Onouoha 2012]. It is the violation of the obligation of probity, fidelity, and inequality in the public service to the detriment of the individual or organization (Roderick and Subramanian,) (2003, 45).

Seminar treaties on corruption and embezzlement, fraud and corruption for instance dealt with the fraud of this type is committed through the following means; outright abscornment of corporate or government assets for personal use, payment of salaries to ghost workers, payment of dubious purchases and contracts, inflation of contract prices, the diversion of government funds into private uses, the use of office impress for personal allowance, the unauthorized spending  of public funds or assets, making payments against unclear cheques, the forfeiture of a diseased staff gratuity and pension benefits and the misuse of medical allowance and reimbursements, divulging information about the funds without the party’s authorization ( breach of confidentiality), violation of fiduciary duties of trustees, failing to account for any transactions or changes in a trust account etc. of course, the person or party entrusted with the funds is generally not bound to perform extraordinary feats of financial investment. Instead, the party is required to invest the funds in way that it is reasonable and prudent on the other hand, if the party was hired under contract, specifically because of their investment skills, they would be expected to perform under the terms set forth in the contract. The effect of fraud on any organization leads to grave consequence in either the public or private sectors. Kiabel (2002; p.43).

Most misappropriation cases results in serious economic effects on the economy such as; loss of fund, assets, revenue meant for current and capital expenditures, and lack of funds for the provision of socio-economic infrastructures for the public. The need to talk about corruption and embezzlement in the Cameroon public sector remains a very important course of action and can be said that there is existence of these acts on other sectors and in other countries not specifically Cameroon.

It is a scourge that existed since human beings started organizing themselves into societies and communities, indicating that these practices exist in all over the world (stifung, 1992:44). What generally differ from on sector to another or from one country to another are intensity and most importantly is the ways the governments and the society’s at large deal with the problem so as to reduce or eliminate fraud. From a study carried out Friedrich Elbert Stiffing on the nature and manifestations of fraud in Cameroon from 1994-1998, the intensity was so high especially in the public service.

1.2 Statement Of The Problem

The issue of misappropriation of fund constitutes a fundamental problem in the public sector. Embezzlement and corruption in the public sector has registered a severe adverse impact on the public sector. This is primarily due to the practices of these evils in various sectors of the public sector. This includes; fraudulent activities between shareholders and members in an organization, and the abusive seizure of goods in the custom service and favoritism in the award of government contracts for unjustifiable reasons. The case of misappropriation and embezzlement of public funds in Cameroon resulted in the economic recession which led to the implementation of some stringent policies by the government.

Throughout the years there have been infinite companies, persons and also countries that have been declared bankrupt, caused by financial management. The financial misappropriation of public funds hinders the provision of basic social and economic infrastructures and the development of the nation at large. By taking a look at some of the world’s largest economies we can find cases where the financial management has somehow gone wrong and depict how severe the effects of financial mismanagement can actually lead out to be.

There are numerous examples of where finances are not managed right and where companies, organization, individuals and even countries are liquidated, and even more examples where there have been episodes of financial mismanagement but the situation was still able to escape. Financial mismanagement and embezzlement will always be a possible problem for businesses, Individuals, for countries and even in our homes. The problem confronting the study is to appraise the effects of mismanagement and embezzlement of funds in the public sector, a case study of the Cameroon General Certificate of Education Board in the South West Region.

1.3. Research Questions.

1.3.1 General Research Question

Is there Corruption and Economic Crime in The Public Sector

1.3.2 Specific Research Questions

1. What are the main causes of corruption and embezzlement of funds in the public sector such as the GCE board?
2. What are the possible effects of corruption and embezzlement of funds on the public sector like the GCE board?
3. What measures can be taken to eradicate corruption in the Cameroon public sector?

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