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

CHAPTER ONE

INTRODUCTION

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.