AN EXAMINATION OF THE CAUSES BEHIND THE MISMANAGEMENT OF LOCAL MUNICIPAL FUNDS IN CAMEROON

CHAPTER ONE INTRODUCTION 1.1 Background of the Study Local government is essentially the outcome of devolution, which itself is a form of decentralization. Broadly speaking, it refers to a geographically defined community that does not possess sovereignty but holds legal authority and an organized structure to manage its internal affairs. According to the 1974 Cameroonian legislation concerning council structures, local government is described as a decentralized public entity with legal personality under public law. Mbinglo (2018) defines local governance as a regulated process in which people living within a particular locality participate actively in decision-making on issues that matter to their community. These residents are involved in identifying key challenges, crafting suitable solutions, allocating the necessary resources, and monitoring the implementation and evaluation of these solutions. Local government is commonly regarded as an essential extension of the national or state government that unites the people of a particular area into a common administrative framework. Its functions primarily support the central government while meeting the collective needs of local citizens (Ndikumana & Ncube, 2020). The local government acts as a vital link between the government and its citizens, especially because of its connection to specific geographic zones and the residents who face unique local challenges. It provides a platform through which community members can collaborate to achieve outcomes that neither the national/state government nor individuals could accomplish effectively on their own. This system offers more opportunities and channels for individuals to contribute their expertise, insights, and creativity. Local governments thus play a key role in ensuring that municipal policies, plans, and services are tailored to local needs better than centralized governance models would allow (Ndikumana & Ncube, 2020). Ekong (2020) points out that Zimbabwe’s success in the 1980s was partly due to the effectiveness of local government institutions, including both rural and urban councils, which delivered crucial social and economic infrastructure supporting broader development efforts. Mbinglo (2018) further argues that local governments often provide services more efficiently and at a lower cost than central governments. For example, in El Salvador, local governments executed public works projects at costs substantially lower than those incurred by central government agencies, achieving savings of between one-third to two-thirds. This background lays the foundation for the research by outlining the key issues and prior studies related to the topic. The study focuses on "An Investigation into the Factors Responsible for the Mismanagement of Local Government Funds in Cameroon." Funding at the local government level in Cameroon is critical for delivering essential public services such as healthcare, education, infrastructure development, and other community programs. These funds usually come from national government allocations, local taxation, and other income sources (Ndikumana & Ncube, 2020). Proper and efficient distribution of these funds is essential to promote local development and enhance the welfare of residents. However, financial mismanagement within Cameroon’s local governments remains a persistent and serious problem. Various studies have documented cases of corruption, irregularities, and weak control systems (Mbinglo, 2018). Research identifies poor governance structures, lack of transparency, and insufficient accountability as key contributors to the mismanagement of local government funds (Njab & Nkeng, 2017). Such practices not only lead to inefficient use of public resources but also erode public trust in local government bodies. Corruption is a major factor in this mismanagement, involving bribery, embezzlement, and favoritism, which divert funds intended for public services (Tchatchoua-Djomo & Wamba, 2019). The problem is further aggravated by political interference and inadequate training programs to improve the capacity of local government officials. Despite some efforts to improve governance and financial oversight in Cameroon, there remains a significant lack of in-depth studies specifically focusing on the management of local government funds (Ekong, 2020). Understanding the causes behind financial mismanagement is crucial to developing effective interventions and policy recommendations to address these issues. This research aims to fill that gap by exploring the factors responsible for the mismanagement of local government funds in Cameroon, analyzing their underlying causes, and offering practical suggestions to improve financial management and promote sustainable development. 1.2 Statement of the Problem The problem statement provides a detailed outline of the challenges that the study intends to address and identifies the gap in existing knowledge. For the topic "An Investigation into the Factors Responsible for the Mismanagement of Local Government Funds in Cameroon," the core issue is that local government funding is essential for delivering public services and facilitating development at the local level. Yet, growing concerns exist about the mishandling of these funds, which hampers effective service delivery and obstructs sustainable development efforts (Tchatchoua-Djomo & Wamba, 2019). There have been documented cases of corruption, lack of transparency, and weak accountability mechanisms within local government institutions (Njab & Nkeng, 2017). These issues diminish public confidence in local authorities and pose serious challenges to governance and national development objectives. While addressing financial mismanagement at the local government level is critical, there is a scarcity of empirical research examining the root causes of these problems in Cameroon. Previous studies have mainly focused on national-level corruption and governance, leaving a gap in understanding how and why financial mismanagement occurs locally (Ekong, 2020). Therefore, conducting a detailed investigation into the factors causing the mismanagement of local government funds in Cameroon is essential. This study seeks to bridge this knowledge gap by identifying and analyzing the key causes behind financial mismanagement at the local level. Moreover, it aims to provide actionable recommendations to improve financial management practices, promote transparency, and enhance accountability within local government institutions. Hence, the study will thoroughly investigate the factors responsible for the mismanagement of local government funds in Cameroon. 1.3 Objectives of the Study The general objective of this research is to explore the factors responsible for the mismanagement of local government funds in Cameroon. The specific objectives include: i. To assess the factors that contribute to the mismanagement of local government funds in Cameroon. ii. To examine the impact of financial mismanagement on the development of local government areas in Cameroon. iii. To identify measures that can prevent or reduce the mismanagement of local government funds in Cameroon. 1.4 Research Questions In line with the objectives, the study seeks to answer the following questions: i. What are the factors responsible for the mismanagement of local government funds in Cameroon? ii. How does the mismanagement of funds affect the development of local government areas in Cameroon? iii. What measures can be implemented to prevent or deter the mismanagement of local government funds in Cameroon? 1.5 Significance of the Study The findings of this research will be valuable to several groups: Policy Makers: The results will offer a solid basis for policy reforms and legislative changes targeting the root causes of financial mismanagement. Policymakers can use these insights to design specific interventions aimed at curbing corruption and promoting better financial management. Academic Community: This study will contribute to the broader understanding of public finance management, governance, and corruption within the Cameroonian context. It will serve as a useful reference for future research and academic discussions on related topics in Cameroon and other countries facing similar challenges. 1.6 Scope of the Study The research focuses on examining the factors behind the mismanagement of local government funds in Cameroon. It will empirically analyze the causes, assess the consequences of mismanagement on local development, and identify preventative strategies to reduce financial mismanagement at the local government level. 1.7 Limitations of the Study As with many research endeavors, this study faced some constraints. Limited funding affected the researcher’s ability to access all relevant materials, literature, and information sources, and also influenced the scope of data collection methods such as internet searches, questionnaires, and interviews. Consequently, a moderate sample size was selected. Additionally, the researcher balanced this study alongside other academic commitments, which limited the amount of time dedicated to the research process. 1.8 Definition of Terms Mismanagement: Within this study, mismanagement refers to the improper, inefficient, ineffective, or unethical handling of local government funds. This includes activities such as embezzlement, fraud, corruption, wastefulness, or negligence that result in misuse or misallocation of public resources. Local Government Funds: These are monetary resources allocated to local government entities in Cameroon to provide public services and support community development projects. Such funds may originate from national government transfers, local taxes, fees, or grants. Governance: This term refers to the systems, structures, and procedures through which local governments in Cameroon are administered and controlled, including leadership, decision-making, policy execution, and accountability mechanisms. Corruption: Corruption is defined as the abuse of public office for personal benefit. In this context, it includes practices like bribery, nepotism, kickbacks, and other unethical behaviors that lead to the improper use of local government funds Accountability: Accountability denotes the responsibility of local government officials to report, explain, and justify their actions, decisions, and resource use to citizens and higher authorities. It also involves mechanisms to hold officials answerable for their conduct. Transparency: Transparency involves openness and accessibility regarding local government operations, decisions, and financial records. It requires providing clear and timely information to the public and stakeholders about how government funds are utilized. REFERENCES Ekong, M. (2020). Challenges of Public Finance Management in Cameroon. Journal of African Governance Studies, 12(3), 45-58. Njab, A., & Nkeng, E. (2017). Corruption in Local Governments: A Case Study of Cameroon. African Journal of Political Science and International Relations, 11(4), 112-120. Tchatchoua-Djomo, J. & Wamba, E. (2019). Financial Management and Accountability in Local Governments in Cameroon. Journal of Public Administration, 24(2), 198-214. Mbinglo, R. (2018). Local Government Financial Management in Cameroon: Challenges and Opportunities. Journal of Development Policy and Practice, 6(2), 179-195. Ndikumana, L., & Ncube, M. (2020). Public Finance in Africa: Challenges and Opportunities. Journal of African Development, 22(1), 65-82. Tchatchoua-Djomo, J., & Wamba, E. (2019). Financial Management and Accountability in Local Governments in Cameroon. Journal of Public Administration, 24(2), 198-214.