A STUDY ON THE MISHANDLING AND MISAPPROPRIATION OF PUBLIC FUNDS AND ITS EFFECTS ON GOVERNMENT AGENCIES: A CASE SYTUDY OF FIRS, ABUJA

ABSTRACT: This study examined the impact of mismanagement and embezzlement of public fund on government Parastatals using Federal Inland Revenue Service(FIRS), Abuja as case study. Specifically, the study aimed at determining the nature of mismanagement and embezzlement of fund in the public sector, investigating the factors that enhances  mismanagement and embezzlement of fund in the government parastatals, ascertaining the effect of mismanagement and embezzlement of fund in the public sector, and determining the extent at which such irregularities and corrupt practices affect public  service delivery. The study employed the survey descriptive research design. Questionnaire was used for data collection which was raised against a four Likert scale of Strongly Agree(SA), Agree(A), Strongly Disagree(SD) and Disagree(D). A total of 85 respondents were conveniently selected as sample size comprising of staff Federal Inland Revenue Service(FIRS), Abuja. Out of the 85 respondents, 71 responses were validated from the survey. The study adopted the Fraud Triangle Theory by Cressey (1971). From the responses obtained and analyzed, the findings revealed that the nature of mismanagement and embezzlement of fund in the public sector is prevalent at (β = 0.912, R2 = 0.948, P = .000). The findings also revealed that there are factors that enhances  mismanagement and embezzlement of fund in the government parastatals at (β = 0.892, R2 = 0.937, P = .000). The findings further revealed that there is a significant effect of mismanagement and embezzlement of fund in the public sector at (β = 0.887, R2 = 0.936, P = .000). Finally, the findings also revealed that the extent at which financial irregularities and corrupt practices affect public service delivery is high at (β = 0.896, R2 = 0.952, P = .000).  On the basis of these findings, it was recommended that the establishment of strong penal code system to enforce laws and rules as sternly as the need for adequate punishment for offenders on corruption and related matters on fund embezzlement is paramount and germane.