Sweeping it under the carpet: the role of legislators in corrupt practice in Nigeria
| Date | 06 July 2015 |
| DOI | https://doi.org/10.1108/JFC-02-2013-0003 |
| Published date | 06 July 2015 |
| Pages | 354-377 |
| Author | Olatunde Julius Otusanya,Sarah Lauwo,Oluwaseun Joseph Ige,Olunlade Samuel Adelaja |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial crime |
Sweeping it under the carpet: the
role of legislators in corrupt
practice in Nigeria
Olatunde Julius Otusanya
Department of Accounting, Faculty of Business Administration,
University of Lagos, Nigeria
Sarah Lauwo
Essex Business School, University of Essex, Wivenhoe, UK, and
Oluwaseun Joseph Ige and Olunlade Samuel Adelaja
Department of Accounting, University of Lagos, Nigeria
Abstract
Purpose – This study aims to contribute to the emerging discourse on elite nancial crime, with
particular attention devoted to the role played by the legislature in corrupt practices in Nigeria.
Separations of power, watchdog role of legislature and ideologies have become a major inuence in
democratic system. Legislative power has developed as a means of providing oversight functions over
the executives, thereby inhibiting fraudulent practices in governments.
Design/methodology/approach – The paper argues that the political institutional structures
embedded with monopoly, discretion and little or no accountability facilitate nancial corrupt practices
within the legislature. The paper uses publicly available evidence to show that the legislators in
developing countries are actively engaged in corrupt practices.
Findings – The evidence provided in this paper shows that separation of power and representative
democracy had not brought about transparency and accountability in government activities in Nigeria.
Legislature often trade-off their constitutional power and their claim of service to the public interest by
engaging in nancial criminal practices.
Research limitations/implications – This paper does not set out to provide a comprehensive
analysis of political corruption. Instead, it considers the “dark” side of legislative practice by
examining the involvement of legislature in facilitating corrupt nancial practices in Nigeria.
Practical implications – The inability of the regulators to effectively sanction legislators implicated
in corrupt practices suggests that the current institutional and regulatory apparatus are not fully
equipped in dealing with the nancial criminal activities of legislators.
Social implications – Despite the arrest and prosecution of some legislators, a number of cases are
swept under the carpet. Therefore, this paper suggests that Nigeria need to reform its political system
and institutions to promote transparency and accountability in government and to build trust in the
legislative process.
Originality/value – This paper considers the “dark” side of legislative practice by examining the
involvement of legislature in facilitating corrupt nancial practices in Nigeria.
Keywords Legislators, Discretion, Corruption, Accountability and transparency,
Criminal practices, Monopoly
Paper type Research paper
The current issue and full text archive of this journal is available on Emerald Insight at:
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JFC
22,3
354
Journalof Financial Crime
Vol.22 No. 3, 2015
pp.354-377
©Emerald Group Publishing Limited
1359-0790
DOI 10.1108/JFC-02-2013-0003
Introduction
In the constitutional system, the legislature provides a check and balance to the
executive. The role of the legislature as the watchdog over public nance is part of its
oversight functions over the executive in the management of the capital and resources of
the Nigerian state to ensure good governance, accountability and probity (Babawale,
2006;Oyewo, 2007). Lafenwa (2009) noted that the legislature is the engine of democratic
governance, as laws made by it set the agenda for the government and regulate the
conduct of the people. Apart, its oversight and representational duties are critical to
sustainable development, which is considered as one of the ends of democracy.
Therefore, the legislature occupies a vantage position in the making and unmaking of all
laws, including those pertaining to the eradication and reduction of corrupt practices in
public and private life. Yet, legislature have been indicted and implicated in facilitating
corrupt practices, as they have been sometimes involved in bribery and corruption as an
incentive to pass appropriation bills or in award of contract for personal interest
(Oyewo, 2007;Otusanya, 2010).
The legal and judicial institutions can be inuential in curbing tax evasion, tax
avoidance and corruption in democratic states. It has been argued that parliament plays
a crucial role in curbing anti-social practices, both in enacting appropriate laws to
counter anti-social practices and in seeing through its committees that these laws are
enforced (Pope, 2006;Stapenhurst et al., 2006a;Oyewo, 2007). The institutional
mechanism offered by the Constitution for the ght against corrupt practices is itself not
immune from the plague (Onuoha, 2006;Alabi and Fashagba, 2010). Corruption is one of
many serious challenges that undermine the effectiveness of institutions and entire
governments in many African countries (Ribadu, 2010). Corruption was not only seen as
a threat to democracy but also perceived to undermine economic development, violate
social justice and destroy trust in state institutions (Stapenhurst et al., 2006b). It seems
to be appropriate to hold it responsible for impeding investor condence and depriving
citizens of true governance, democracy and development (Ribadu, 2010). It has been
observed that one major challenge to Nigeria’s search for enduring socio-political and
economic development as well as efcient and productive utilisation of national
resources in the new republic is the pervasive corrupt practices in the polity (Bakre,
2008;Otusanya, 2010,2011;Alabi and Fashagba, 2010).
Prior to the return of democracy in 1999, corruption had become institutionalised
under successive military regimes (Osoba, 1996;Osaghae, 1998;Otusanya, 2010). The
culture of ethical behaviour and accountability in government were not only glaringly
assaulted but also grossly eroded (Alabi and Fashagba, 2010). Therefore, the restoration
of democracy and by implication the return of a representative assembly was seen as the
appropriate medium of separation of power required in restoring accountability and
efciency in the utilisation of public resources. To further check corruption, the
leadership of the National Assembly should itself not be corrupt. Therefore, it should
ensure that it is as transparent, open and accountable as possible. Iroanusi (2006) argued
that this had not been the case, especially with the leadership of the country’s National
Assembly. This is because if the executive compromises the legislature, then its
commitment to ght corruption will be weakened.
Widespread corruption has increasingly been seen as one of the most signicant
threats to deepening democratisation and indeed much of the democratising Third
World (Seligson, 2006;Otusanya, 2011). A number of studies have illuminated the role
355
Legislators in
corrupt
practice in
Nigeria
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