Applying an integrative model in predicting financial irregularities in Chibombo district

Chibombo is a new district which was not expected to have a wide range of financial irregularities following staff having been trained in Financial Administrative Management Systems in the public sector. These irregularities have negatively affected the operations of key activities and service delivery in the District. This study was aimed describing the demographic profile of staff that is involved in financial irregularities and to profile the patterns of these irregularities in the public institutions in Chibombo District.
A cross sectional survey quantitative study design, based on a stratified sample drew respondents from six public sectors. Data was analysed using the Statistical Package for the Social Sciences (SPSS), Version 22.0. Measures of central tendency and variations of critical variables and linear egression to establish cause and effect were done. The significance level was set at p ≤ 0.05.
The study revealed that public servants have experienced predominantly three types of financial irregularities and these relate to the introduction to payroll without authority, irregular use of accountable imprest and irregular payment of subsistence and meal allowances. One sample t tests showed that men and women did not statistically differ significantly in perceiving financial irregularities p < 0.01.
This study is original and differs from other studies because it has examined two theories and a wide range of financial irregularities that are generally difficult to be accessed by researchers to be published in an academic journal. The variables of findings of this study are inferred from the Auditor General’s Report that is not private and not confidential.
The findings provided by this study are important because they provide a deeper understanding of the linkage between predictors in financial irregularities and acts committed by public servants. The study also contributes knowledge about possible solutions to the commitment of financial irregularities. Future research may cover more districts and to consider embracing a mixed methods study design.
This is a premier study in Zambia and one of the first to use two theories (Fraud Triangle Theory and Diamond Fraud Theory) to examine factors that influence public servants to commit financial irregularities.
Keywords: Financial Irregularities, Fraud Triangle, and Diamond Fraud Theory, Chibombo