THE EFFECT OF ACCOUNTABILITY AND TRANSPARENCY ON THE PERFORMANCE OF THE PUBLIC SECTOR ORGANIZATION

CHAPTER ONE

INTRODUCTION

1.1      Background of the study

The present situation is that though, government has been introducing various measures in respect of this reform programme, most especially in banking consolidation, the issue of due process and financial accountability were also introduced in order to ensure transparency and accountability within the Nigeria economy has not been adequately visited.

Premchand (2010) observed that the capacity to achieve full accountability has been and continues to be inadequate, partly because of the design of accountability itself and partly because of the widening range of objectives and associated expectations attached to accountability. He further argues that if accountability is to be achieved in full including its constructive aspects, then it must be designed with care. The objective of accountability should go beyond the naming and sharing of officials, or the pursuit of sleaze, to a search for durable improvements in economic management, to reduce the incidence of institutional recidivism. The future of accountability consists in covering the macro aspects of economic and financial sustainability, as well as the micro aspects of service delivery. It should envisage a three-tier structure of accountability: that of official (both political and regular civil employees), that of intra- governmental relationships and that between government and their respective legislatures.

According to Sanusi (2004) in a workshop on “Transparency of Financial reporting in the financial services industry”. The banking industry plays a central role in mobilizing resources for the promotion of economic growth and development of any nation. This underscore the two need for effective regulation and supervision to ensure soundness and stability. The rendition of accurate and timely returns to the achievement of the goal.

In Nigeria, the Central Bank and other supervisory agencies are primarily responsible for the regulation and supervision of Banks and other financial institutions, the external auditors on their part are saddled with the role of reviewing the institution’s records and preparing the financial statement from where opinion is formed on the accuracy and creativeness of the financial statement.

1.2 Statement of the problem

The research work is to examine the effect of accountability and transparency on the performance of the public sector organizations with particular reference to central bank of Nigeria (CBN) Enugu branch. Public organizations has been faced with the problem of employments racketing, corruption in procurement, internal revenue collection, award of contracts to the wrong contractors, etc.

Salaries and allowances are paid to non-existing worker as if they are duly recruited staff of local government. Government goes on to pay this money without a due process to ascertain this transparent nature of transaction.

The main problem emanating from the above introduction and circumstances, which has necessitated the study is how the problems of ensuring that the various reform policies of government will cut across all the sector of the economy and the challenges arising from the implementation strategies.

Also there is problem of ensuring adequate form of accountability in both private and public sector of the economy most especially as various devices and strategies are being adopted by government official to circumvent effort of the government in ensuring adequate reform of the Nigeria economy.

1.3 Objective of the study

The aim of this research work is to examine the effect of accountability and transparency on the performance of the public sector organizations with particular reference to central bank of Nigeria (CBN) Enugu branch. The specific objectives of this project work includes the following;

1.  To examine the influence of accountability and transparency on the performance of Nigerian public sector.

2.  To examine the effect of

accountability and transparency on the development of Nigeria.

3.  To examine the effect accountability and transparency on the total revenue in the country.

1.4 Research Questions

Based on the objectives above, the researcher asked the following question;

1.  What are the influences of accountability and transparency on the performance of Nigerian public sector?

2.  What are the effects accountability and transparency on the development of Nigeria?

3.  To what extent does accountability and transparency affect the public sector organisation?

1. RESEARCH HYPOTHESIS

The research work is based on the following hypotheses which are formulated in tackling the problems in the subject.

HO: Accountability and Transparency has not put to check the circumvention of due process in financial and non-financial activities of public sector organizations in Nigeria.

H1: Accountability and Transparency has put to check the circumvention of due process in financial and non financial activities of public sector organizations in Nigeria.

HO: The inhabitants of local government council has not benefited from the proceed of accountability and transparency in improvement of social amenities.

H2: The inhabitants of local government council has benefited from the proceed of accountability and transparency in improvement of social amenities.

H0: The process of accountability and transparency has not affected the official and non-official financial behavioral attitudes of council attitudes of staff in Nigeria.

H3: The process of accountability and transparency has affected the official and non-official financial behavioral attitudes of council staff in Nigeria.

1. SIGNIFICANCE OF THE STUDY

This research work will enable the researcher to establish the possible factors causing improper accountability and transparency in financial management in the conduct of public sector in Nigeria.

It is equally expected that, the research work will help to provide solution which will be applied in improving the stability in the public sector. This study therefore, will expose the weakness of the local government council system.

Finally, the study will generally be of immense importance to the readers on various agencies establishing by federal government in fighting corruption in Nigeria.

1. SCOPE OF THE STUDY

This study as the case may be covers the nature of accountability and transparency in financial management in the local governments with particular reference to Bende local government area of Abia state. The study takes a holistic approach in its research to unveil the challenges and problems hindering the proper accountability and transparency in financial management in local government and better ways of curbing them.

The study also looked at the basic ways of fund and revenue sources in the local government and its disbursement.

1. LIMITATIONS OF THE STUDY

In this research work, there are many constraints that affect the output of this work. One of the limitations is time frame given to this work by the school for the writing and submission of this project work as well as academic and personal pressure was faced.

Also, it was not easy collecting information from the council area. Officers I met did allow me access to some of their documents for security purpose.

Furthermore, most of the personnel in Bende council area are not qualified accountant and this imposed some problems in data collection. Exact is one of major problem in school, getting it from the management or people in authority is not easy financial limitations is another, imposing a big constraint in conducting the research work effectively; particularly in administrating of the question naira and lack of adequate material for the study.

1. DEFINITION OF TERMS

LOCAL GOVERNMENT: Is the third tier of government in Nigeria. It is the government at the lower level that has power of control our local affairs as well as the staff by carrying out its functions.

REVENUE: Is fund raised by the government for public purposes and constituting of taxes, licenses, fines, special assessment.

ALLOCATION: Is specified amount given or allocated to various local government in the country by the federal and state government to carry out their day to day.

MANAGEMENT: The achievement of organization and goals through an effective and efficient utilization of human and material resources.

COUNCIL: This means an area defined to carryout government functions.