FRAUD AND FINANCIAL MALPRACTICES AS A LENDING FACTOR TO BUSINESS FAILURE (A CASE STUDY OF NIGERIAN TELECOMMUNICATION LIMITED (NITEL)

ABSTRACT: The study is concerned with an investigation into fraud and financial malpractices as a leading factor in business failure and eventual liquidation. A case study of Nigerian Telecommunication Limited (NITEL). By way of background, the study commenced with an overview of the business environments and its effects on business growth and survival. Using NITEL as a case study, it was established that inspite of its privatization, NITEL is still saddled with the problem of bad image arising mostly from fraudulent practices. With the above stated problem, the specific objectives of the study were:

1.       To ascertain why NITEL Plc is still saddled with problem.

2.       To determine whether there is significant weakness in NITEL internal control system.

Data collected were analysed using weighted mean and ranking order.  Major findings of the study were:

(i)      The study revealed that the NITEL is unable to achieve its objective

(ii)     It was also revealed that fraud and financial malpractices was the most important factors that has contributed poor performance of NITEL.At the end, the following recommendation were made:

(i)      NITEL management should design appropriate policies.

(ii)     The organisation should also strengthened its internal control system.

LIST OF TABLE

1. Sample size determination and allocation of questionnaire
2. Factors responsible for non-achievement of objectives by NITEL
3. Factors responsible for fraudulent malpractices in NITEL
4. Factors in effective internal control system in NITEL
5. Impact assessment of factors in fraud elimination / minimization

TABLE OF CONTENTS

CHAPTER ONE

Introduction                                                                                      1

1. Background of study                                                     1
2. Statement of problem                                                    4
3. The purpose of study                                                    5
4. Scope of study                                                               6
5. Research question                                                                   6
6. Significance of the study                                                         7

CHAPTER TWO

Review Of Literature                                                               9

1. Definition of distress/failures of a corporate                           9
2. Causes of business failure                                              12
3. Summary of related reviewed literature                         29

CHAPTER THREE

Research design and Methodology                                          30

1. Research design                                                             30
2. Area of study                                                                 30
3. Population of the study                                                 30
4. Sample size and sampling procedure                                      31
5. Instruments for data collection                                                34
6. Validity of the instrument                                              34
7. Reliability of the instrument                                          35
8. Method of administration of the research instrument    35
9. Method of data analysis                                                36

CHAPTER FOUR

Data Presentation And Results                                                         37

4.1     Research question 1                                                       37

4.2     Research question 2                                                       40

4.3     Research question 3                                                       42

4.4     Research question 4                                                       45

4.5     Summary of findings                                                     47

CHAPTER FIVE

Discussion Of Results, Conclusion, Implication Of Findings  49

1. Discussion of findings                                                   49
2. Conclusions                                                                             51
3. Implications of the study                                                         52
4. Recommendations                                                                   52
5. Suggestions for further studies                                                53
6. Limitation of the study                                                  54

References                                                                      55

Appendix                                                                       57

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

PAYMENT