CHAPTER ONE
- INTRODUCTION
- GENERAL OVERVIEW OF THE STUDY
There has been specific reference of cooperative thrift and credit society, and a case study of Imo State.
It is worthy note that the case of fraud and foreign reported by Nigeria bank to Nigeria deposit insurance cooperative (NDC) between 1991, cooperative society suffered most both in terms of the numbers of case as will as the amount involved. Only ten out of above 250 of these ten bank, eight were commercial bank, only two were cooperative thrift and credit society.
Curiously NDIC in only of its report (1990) wrote that cooperative thrift and credit society’s staff were mostly involved in the unwholesome act. Thus, its management of such cooperative society are to blame for not putting very prompt and adequate internal workshop, some and symposia has been mounted by various financial institution in Imo State to address the issue of fraud and its effect on the financial system in particular and the economy in general. Yet more case are regularly reported media almost on a daily basis.
My focus in the project is also on fraud types, cause, detection and how to control it.
The role of the regular authorities in controlling fraud in the financial system particularly in cooperative thrift and credit soc8irties will also be considered.
- STATEMENT OF THE PROBLEM
Despite of internal control mechanism put place by financial institution and effort to delect fraud and eliminate before and after its occurrence, there are still incident of fraud in cooperative thrift and credit societies, bank and other financial institution and this has become a major problem of those institution especially to cooperative thrift and credit societies. This problem of fraud affected the activities and operation of the cooperative thrift and credit societies.