Institute of Criminal Justice Studies OCCUPATIONAL FRAUD: A Comparative Study of Ghana and Nigeria MICHELLE ODUDU BA, MSc The thesis is submitted in partial fulfilment of the requirements for the award of the degree of Doctor of Philosophy of the University of Portsmouth Submitted 31 Oct 2017 WHILST REGISTERED AS A CANDIDATE FOR THE ABOVE DEGREE, I HAVE NOT BEEN REGISTERED FOR ANY OTHER RESEARCH AWARD. THE RESULTS AND CONCLUSIONS EMBODIED IN THIS THESIS ARE THE WORK OF THE NAMED CANDIDATE AND HAVE NOT BEEN SUBMITTED FOR ANY OTHER ACADEMIC AWARD i Abstract Ghana and Nigeria are known for their high levels of Occupational Fraud in public offices. The governments of both countries have emphasised their commitment to reducing the losses caused to the state by pledging their allegiance to the counter fraud agencies to help tackle Occupational Fraud. Yet it seems that the prosecution of such cases are ineffective as high-profile fraudsters can operate with immunity and their cases remain unprosecuted. This research project was based on in-depth examinations of 50 occupational fraud cases, involving high profile individuals in both countries. In doing so, it established the characteristics of those who were prosecuted; the extent to which prosecutions were effectively managed; the barriers to effective prosecutions; and the similarities or differences between the occurrences in both countries. The aim of the project is to examine the practice of, and barriers to prosecution of large scale occupational fraud of those in senior public positions in Ghana and Nigeria. The study drew on the experiences of stakeholders such as defence and prosecution barristers, academics and fraud analysts via semi- structured interviews and questionnaires. 13 interviews were conducted in Ghana and in Nigeria where respondents were recruited using a snowball approach. Questionnaires were physically distributed: 20 of the staff at EOCO and 10 to NGO staff in Ghana; 6 and 5 came back respectively. The empirical data collected suggests that there is no lack of will on the agencies’ part to at least commence proceedings. However, various impediments hamper a successful completion of prosecution. Challenges were more evident in Nigeria, where agencies are less effective at retrieving stolen assets and changing social norms. This is further compounded by several cultural and political factors which create limitations leaving many cases ‘still pending’. ii Table of Contents Page Abstract………………………………..…………………………………….…. ii List of tables and figures...………………………………………….............. vi - vii Acknowledgements……………………………………………………...….... viii List of Abbreviations ……….………….……….……………........................ x - xi CHAPTER 1 Introduction Background………………………………………..….…….. 1 Research aims…………………….……………...………. 8 Outline of Chapters………………….…………...………. 9 CHAPTER 2 Literature Review Theoretical Framework………………………...………… 11 Contextualising Occupational fraud in Ghana……..…… 19 Contextualising Occupational fraud in Nigeria……..…… 29 CHAPTER 3 Ghana: An overview of Ghana…………………………...………. 53 The Media………………………………….……..……… 54 Legal background…………………………………...……. 56 The government…………………………………..……… 60 iii Nigeria: An overview of Nigeria…………………….………...……. 61 The government………………………………..……...….. 63 The Culture…………………………………………………. 64 The Media…………………………………………………… 67 Legal background………………..……………………...... 69 Discussion………………………………………….……… 69 Justification for comparison………………………………. 71 CHAPTER 4 International collaborations…………………..………….… 77 Agencies fighting Occupational Fraud in Ghana……… 87 Agencies fighting Occupational Fraud in Nigeria……… 100 Discussion………………………………………..……..… 122 CHAPTER 5 Research methodology Introduction…………………………………….…...……… 123 Research Design……….................................................. 126 Ethical Considerations…………………………………….. 194 Study limitations….….…………….…………………..….. 210 Discussion……………………………….…………….…… 215 …. CHAPTER 6 Primary research results: Discussions of findings in Ghana Types of Occupational Fraud ………………..…………… 217 Amounts involved………………………………………….. 229 Demographics of perpetrators………………..………….. 230 Detection of fraud schemes in the cases reviewed…….. 232 Barriers to effective prosecutions in Ghana....………….. 237 iv Sentencing in Ghana ...................................................... 256 Discussion………………………………………………….. 259 CHAPTER 7 Primary research results: Discussions of findings in Nigeria Types of occupation fraud………………….…………….. 263 Amounts involved………………………………………….. 276 Demographics of perpetrators…………………….………. 277 Detection of fraud schemes in the cases reviewed…….. 280 Sentencing………………………………………………….. 282 Barriers to prosecutions…………………………………… 284 Discussion……………………………………………..…… 302 CHAPTER 8 A comparative analysis.………….................................... 306 Discussion…………………………………………………... 330 Similarities and differences…………………………..…… 331 CHAPTER 9 Conclusion……………………………...…………………... 339 .... v Bibliography...……………………………………………………………… ………. List of figures and tables Figures Figure 5.1. Different types of sampling methods……………………………………….. 144 Figure 5.2. Illustration of the different types of interview styles…………………….…. 151 Figure 6.1 The organisation structure of the NSS……………………………………… 225 Figure 6.2. Aggregate amount of money involved in Ghana…………………………… 229 Figure 6.3. Ages of perpetrators in Ghana….………….……..…...……………………. 232 Figure 6.4. Themes from cases analysed in Ghana……………………………………. 237 Figure 6.5. Themes from interviews in Ghana ….…………………….......................... 238 Figure 7.1. Aggregate amount of money involved in Ghana………………………….. 276 Figure 7.2. Themes from cases analysed in Ghana……………………………………. 284 Figure 7.3. Themes from interviews in Ghana ….…………………….......................... 285 Figure 8.1 Comparison of types of fraud in Ghana and Nigeria……………………... 307 Figure 8.2 Gender comparison between Ghana and Nigeria………………………… 311 Tables Table 2.1: Shows the number of cases reviewed in Ghana and Nigeria……………… 51 Table 4.1: The State Department and USAID Assistance to Nigeria…………………... 79 Table 4.2: Convictions secured by the EFCC…………….……………………………… 108 Table 5.1: Summary of sample of cases examined for this study………………………. 124 Table 5.2: Summary of respondents recruited for this study……………………….…… 128 Table 5.3: List of the data type collated for this study……………………………………. 137 Table 5.4: Colour coding of questionnaire questions……...…………..……………… 170 Table 5.5: Questionnaire questions for the Prosecutors and Defence Lawyers........... 171 Table 5.6: Stages and Process involved in the qualitative analysis of this Research 186 Table 6.1: Classification of fraud cases in Ghana…..…………………….………….... Table 6.2: Asset misappropriation 218 Table 6.3: Contract fraud………………………………………………………………… 219 Table 6.4: Payroll fraud scheme……..…………………………….............................. 229 Table 6.5: Gender split of high profile cases……………………………………………. 230 Table 6.6: Respondent’s views on prosecution challenges 239 Table 6,7: Respondent’s views on sentencing challenges 257 vi Table 7.1: Nigeria: Classification of fraud cases………………..…………………….… 263 Table 7.2: Nigeria: Typology of Asset Misappropriation…………..……………………. 266 Table 7.3: Nigeria: Typology of Theft schemes…………………….…………………… 267 Table 7.4: Nigeria: Typology of Money Laundering schemes…….…………………… 269 Table 7.5: Nigeria: Contract fraud typology…………………………..………………….. 270 Table 7.6: Nigeria: Corruption typology………………………………...………………… 272 Table 7.7: Nigeria: Typology, of investment fraud……………………..……………….. 273 Table 7.8: Nigeria: Gender split in Nigeria……………………………………………….. 277 Table 7.9: Nigeria: Respondents’ views on sentencing….………………….…………. 282 Table 7.10: Nigeria: Respondents’ views on prosecutions………………….…………. 284 Appendices Appendix 1. Literature review search plan…………………………………………… Appendix 2. Dissemination…………………………………………………………….. Appendix 3. Ethics approval letter……………….……………………………………. Declaration of compliance with ethical requirements………………… Appendix 4. Survey letter……………………………………………………………..... Appendix 5. Interview participants consent form…………………………………….. Appendix 6. Interview participants information sheet……………………………….. vii Acknowledgment I acknowledge the immense unwavering support of my supervisors on this seemingly swift yet long and challenging journey; Professor Francis Pakes and Dr Martin Tunley. This research is dedicated, in loving memory to (Late) Martin Tunley (2nd Supervisor) who passed away before I could submit this work. His spirit and wisdom have continued to inspire me, throughout the thesis process. Thanks to Dr Alison Wakefield for coming to my rescue last minute. The direction of the rudder had altered so many times but the destination and support remained unchanged. In Nigeria, I wish to specially thank the following organisations, the Chairman of the EFCC, who authorised the staff to provide me with all the relevant information and data that were helpful in analysing certain cases and the challenges faced. Also, their staff, whom through their dedicated and immense support, this work was achieved. I should mention the support of the Commandant Ayo Olowonyi, Head of the EFCC Research and Training Institute, Karu, Dr David Tukura, Director of Planning, Policy and Statistics, Mr Olaolu Adegbite, Director of Operation, whose assistance in granting me access to relevant data in their department were invaluable. I am equally thankful for the same reasons to the ICPC Chairman, the Secretary to the Chairman, Head of Research Department, ICPC. Also, all the barristers, media