Transcript CORRUPTION AND FRAUD IN LOCAL GOVERNMENT

CORRUPTION AND FRAUD IN
LOCAL GOVERNMENT
A CASE OF CAPITAL DEVELOPMENT FUND
(LGCDG)- ARUSHA MUNICIPALITY and MONDULI
DISTRICT ARUSHA REGION, TANZANIA
INTRODUCTION
Concepts
•Corruption is intrinsically rooted on a prevailing set of
ethics in a given socio-cultural environment. The
principles that guided society to mirror and practice
what is good and avoid what is evil.
Under Government framework and public service
delivery, Corruption is any unethical act that erodes
the full right of a citizen or client by an official
entrusted with public or corporate office.
Characteristics of Corruption
•The culprit may demand money from a citizen or client
illegally in return for service.
•The culprit may place costful, harmful demand or
immoral segments such as sex, privilege contrary to the
legal postulates in the given interaction.
•Corruption denies people’s rights
•It increases costs of production
•It de-escalates the tempo of socio-economic progress
•It victimizes the citizen by compounding his life-burdens
and cost of living
•It marginalizes the citizen as he/she struggles to rise to
his full personality and welfare
Variation in Corruption
Corruption is in most countries illegal and criminal but varies
considerable with the political-cultural societies in their
diverse circumstances.
Take an example:
In USA business profit is the essences of trade but in Socialist
societies, profit is a form of corruption and hence evil –
phenomenal.
In Europe and Asia- generally kickbacks encourage bigproduct orders and bribery help to push merchandized
through customs.
In some Asia Countries and Africa business contract seekers
may be required to give bribery in the form of providing
overseas trips for official or secure college places abroad for
their sons
In all these cases costs of operation rise from about
3.5%.
In other societies these practices are condemned
and cursed as totally illegal
Gifts and social-dinners may play same role while in
other social setting these practices are grossly
disallowed.
Hence corruption takes many forms and in
different social setting if may mean a different
thing or may be sanctioned by cultural normal.
Fraud – is thieving.
The process of cheating to obtain financial gains
in public or corporate dealings and activities.
The presence of Fraud officers in the police force
explain the design on the part of governments to
banish fraud related to public funds-misuse.
Therefore the fraud is the processes of cheating
to steel.
TANZANIA EFFORTS TO COMBAT CORRUPTION
Determined to prevent and combat corruption, Tanzanian
Government had issued several guidelines and documents to
local Government officials to includes;
•Local Authority Finance Act No. 9
•Local Authority Finance Memorandum (1977)
•Planning Guidelines for Villages & Urban areas (2004)
•Local Government Act (1982)
•Formation of the anti corruption Bureau (PCCB)
These documents guide the local Authorities to use
government resources for the benefits of the local citizens.
The guidelines try to plug all loopholes for any acts of
corruption at the detriment of the local people.
Despite tight monitoring of public projects at the local level,
there have been floods of corruptions from the public against
practices, i.e petty corruption.
REPORT OF THE PCCB SURVEY ON
LGCDF
•The Bureau undertook study on the use of the
capital development fund following complaints
from citizens on the account that many projects
were not accomplished.
•Blames were against HoDs for Education,
Health and water and sanitation sector across
the two councils (Arusha Municipalities and
Monduli DC).
One objective of the study was to identify weak point
on the disbursement and involved interviewing many
stakeholders as follows;
CATEGORY
NUMBERS
%
Peasants
Public officials
Cattle farmers
Business man
Others
Total
30
9
5
21
8
73
41.09
12.35
6.85
28.77
10.96
100 %
the study identified Sources of fund in the
councils to be
1. Local Government Capital Development
Grant (LGDG)
2. Tanzania Social Action Fund (TASAF)
3. Participatory Agricultural Development
Empowerment Program ( PADEP)
These funds contributed about 64.38 % of
project investment capital
RESULTS
The study revealed gaps that would have been
exploited to bolster corruption in the local
projects. Both result features and corruption
loopholes are identified;
• 79.45 % of Wananchi (Citizens) are ignorant of
the cost structure of projects. This leaves the
largest proportion of the population in darkness
about local projects
•Despite 87 % of the population being aware of the
presence of the projects, they have no idea of the
use of funds in the local projects. The idea of
project education to the citizens is vital.
•Only 16.4 % of the people had flimsy ideas of the
sources of finance for their projects
•66 % of the people in the study complain about
lack of exposure to project implementation
reports, financial reports at all.
•Villages are not involved in the implementation of
their projects only 54 % participated in the
contribution of project money and labor. The
citizens do not attend vital project meetings.
•80 % of the projects are not accomplished in the
planned time frame. This adds to complications of
additional costs without planned economic logic
embodied, officials can manipulate these
loopholes to gain from corruption. Where does a
fund go, why projects remain un accomplished. 80
% of the people complained about delays in
finalizing local wards projects.
The study findings shows a great variety of ways in
which corruption and fraud can grow conveniently at
the detriment and harm of the local citizen;
•Loss of finances ( Public funds )
•Delay in implementation
•Scarcity of essential services
•Escalation of galloping poverty
•Denied of basic human rights
•Loss of confidence in their Government
•Alienation of citizens from the affairs and projects of
their lives
•De-tracking of their socio-economic progress
•Victims of miserable levels of welfare.
COMMENTS
•The emerging picture is alarming in terms of the
loose system where fraud and corruption can prevail.
•This study is just the tip of an ice berg that lies in the
vast territory waters of the country.
•Concern must be addressed to plugging loopholes in
the local government. Project systems - especially
because the majority of the citizens are not fully
literate or given room to participates and get
exposure to financial analysis related to project
implementation.
conclusion
•Intensification of citizens participation in projects
formation, implementation and supervision is vital
•The ward councilors are more placed to get education on
projects and pass it on to citizens in their wards.
•Wards Development Council should appoint competent
contractors in their projects to see physical results.
•Members of the ward council should undergo training on
the harmful effects of corruption
•Monitoring of projects must involve the surrounding
communities from early stages
•Financial reports must be tabled regularly as
implementation reviews are tabled in public meetings
.
•Project progress Audit must be done - involving
the citizens
•All wards and District must design compulsory
programs of the education and implications of
corruption, bribes and fraud. Citizens and leaders
alike should be subjected to these training
programs.
•Least Development Countries ( LDCs )
are
grappling with a galaxy of constraints in their
development processes. The technological and
financial dependence are compounded by
corruption in their civil services, both at local and
central government. The earlier Africa draws
serious attention on these socio-economic evils
they would undergo better transformation.
Thank you!