Financial Crime and Local Government Productivity in Rivers State

The study investigated the effect of financial crime on local government productivity in Rivers State. The study specifically ascertained the effect of financial crime on effective service delivery and human resource administration in Rivers State local government councils. The predominant factors that induced financial crime in Rivers State local government councils were also identified. Descriptive survey design was employed with purposive sampling drawn from eight local government councils. A total of 220 questionnaires were distributed to the eight local government councils and of the 220, 208 representing 95% were returned and used. The data were analyzed using simple percentages for descriptive analysis and Chi-square (χ2) for hypotheses testing. The findings revealed that financial crime significantly and negatively influenced effective service delivery and human resource administration in Rivers State local government councils. It was further revealed that greed, opportunity and need induced financial crime in Rivers State local government councils. To stimulate employee commitment and effective service delivery in Rivers State local government councils, it was recommended that local government employees should be properly compensated and the institutional and juridical mechanisms (whether on exclusive, concurrent and residual lists) should be strengthened for accountability and deterrence of financial crime.