CORRUPTION AND FRAUD IN LOCAL GOVERNMENT

1. CORRUPTION AND FRAUD IN LOCAL GOVERNMENT A CASE OF CAPITAL DEVELOPMENT FUND (LGCDG)- ARUSHA MUNICIPALITY and MONDULI DISTRICT ARUSHA REGION, TANZANIA

2. 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.

3. 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

4. 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 big-product 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

5. 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.

6. 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.

7. 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.

8. 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).

9. One objective of the study was to identify weak point on the disbursement and involved interviewing many stakeholders as follows;

10. the study identified Sources of fund in the councils to be Local Government Capital Development Grant (LGDG) Tanzania Social Action Fund (TASAF) Participatory Agricultural Development Empowerment Program ( PADEP) These funds contributed about 64.38 % of project investment capital

11. 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

12. 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.

13. 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.

14. 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.

15. 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.

16. 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 .

17. 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.

18. Thank you!