ABSTRACT

The study is concerned with an investigation into found and financial Malpractices as a leading factor in Business failure – A case study of Nigerian Telecommunication Ltd (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 in spite of its privatisation. 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.
I To ascertain why NITEL Ltd is still saddled with problem of fraudulent practices. 
Ii To determine whether there is significant weakness in NITEL internal control system.
Data collection were analysed using weighted mean and standard deviation suing T-test statistical analysis. Majors findings of the study were.
I The study revealed that the NITEL is unable to achieve its objective
Ii It was also revealed that found and financial malpractices was the most important factors that has contributed to poor performance of NITEL.
At the end, the following recommendations were made:
I NITEL management should design appropriate policies. 
Ii The organisation should also strengthened its internal control system. 

CHAPTER ONE

INTRODUCATION
1.1 BACKGROUND OF THE STUDY
Fraud is irregularities involving the use of criminal to obtain and against illegal advantage.
Fraud involving the manipulation of the record and the accounts, usually by the company’s senior officers, with a view to benefiting in some way from the false picture which they convey (eg obtaining finance under false pretences, or concealing a material worsten of the company’s true position)
Frauds, usually by employees, involving the theft, misappropriation or embezzlement of the company\s funds, usually in the form of cash, or of its other assets (such as good held in a warehouse).
Fraud and financial malpractices in many business involving the public sector organisation today contribute mostly to one of the factor that lead to business failure.
In all human endeavour and activities, there are usually stories of successes achievement and failures.
Business are therefore no exception initially, a motive for setting up a company is for economic reasons which are usually taken to be profit maximization objectives in period of booms as was experiences in the mid seventies during the oil boom; making business, including the public sector organizations, thieved in an era of abundance.
In such as era employment production and income were at their peak level and government expenditures at all levels rise considerably without any corresponding rise in productivity.
During this period also, no one complained and managers of our various businesses did not think of means of survival and sufferance.
Efficiency and effectiveness in the use of scare resources were never thought of and there were total absence of research control mechanisms.
Economic planners in such periods, makes unrealistic projections and assumptions they plan to build high ways, sky scrappers, new state capital (or new cities), contracts were awarded induscomminately without the need for detailed cost benefit analysis.
In summary, the sky was the limit for businesses that have access to cheap credits, and investible funds. In such periods, capital inadequacy, under utilization of production capacity, deficiency in aggregate demand for the firm’s product etc, were never heard of during the peak periods.
Contrary, when the hay days were over and the down turns take over the dooms day arrives and business failures becomes the order of the day as a result of adverse macro-economic policies and resulting adverse conditions.
Consequently, expansion is hindered for even the surviving firms. This is the time when company executives/managers, government federal, state and local governments as well as individuals, remember to think of such phrases as viability, belt tightening profitability, growth and survival and better ways or resource planning, control and managements, it is a time when managers/directors of our business firms, public companies/corporations and other governmental organization now thinks of cost reduction and minimization of fraud and financial malpractices which has hitherto plunge such organisation into distressed conditions.
The adverse marco-economic conditions in Nigeria today has attained a dimension that can best be described as “crisis” level. This had led to some drastic measures/programmes being initiated by the government to keep the nation afloat.
Such measures have come in different names at different times, ranging from the belt tightening of the Shagari administration through economic emergency order of the Buhari – regime to the structural adjustment programme (SAP).
As a result of these measures, firms and individuals have found themselves in extremely hard conditions to the extent that some have failed completely, other are stagnated and distressed.
What factors are specifically responsible for such state of affirms of the business firms?
This project is set out to investigate how fraud and financial malpractices can bring a highly profitable organizations into distressed and untimely liquidation.

1.2 STATEMENT OF PROBLEMS
(1) Inspite of the federal government in privatalsing the telecommunication industry, NITEL Plc is still saddled with the problem of bad image arising mostly from fraudulent malpractices by both management and staff of the company
(2) INTERNAL CONTROL: There are inherent weakness in the internal control system of NITEL Plc.
(3) NIEL Plc management does not consider policy or fraudulent cases as strategic in its decision taking.
(4) NITEL Plc has not met with the expectation of its investors as a practiced entity since its privatization.

1.3 PURPOSE OF THE STUDY
1. To fund out the extent of which bad image arising mostly from fraudulent malpractices by both management and staff despite of its privatization.
2. To ascertain the extent to which inherent weakness in the internal control system of NITEL Plc.
3. To find out the extent in which they do not consider policy or fraudulent cases as strategic in its decision taking.
4. To find out the extent in which they do not met with the expectation of its investors as a privatized entity since it privatization.

1.4 SCOPE OF THE STUDY
The scope of this study mainly focuses on fraud and financial malpractices as a leading factors in business failure. The survey is to be carried out at NITAL Plc Okpara Avenue, Enugu in Enugu State.

1.5 RESEARCH QUESTION
For the purpose of this study the follow research questions were asked:
1. To what extent does bad image arising mostly form fraudulent malpractices by both management and staff of the company affect business.
2. To what extent does inherent weakness in internal control system of NITEL Plc contribute to fraud and financial malpractice.
3. To what extent does inability to consider policy on fraudulent cases as strategic in its decision taking brought about business failure.
4. To what extent does damages caused by fraudulent and financial malpractices on the expectations of the investors on their returns.

1.6 SIGNIFICANCE OF THE STUDY
Significance of the study refers to the importance or usefulness of the research to individuals, shareholders, management, potentials investors, suppliers/creditors and all those having one interest or the other on the operations of the business firms.
The ultimate aim of every research is to provide knowledge and information that will bring about a better understanding of the topic under review.
Specifically this project will offer enough information and explanation to the management of NITEL Plc, the government and the general public.
Furthermore, the research findings and recommendations will form a basis to be relied upon by subsequent researcher who may wish to make further inquiries on the issue of fraudulent practices and its effect on business failure.
1. To ensure that good image will arise mostly from fraudulent malpractices by both management and staff of the company. 
2. To ensure useful solution of eliminate inherent weakness in internal control system.
3. To make sure that there is consider policy on fraudulent cases as strategic in its decisions making.
4. To ensure that they met with the expectation of its investors on their returns.