AN INVESTIGATION ON THE CAUSES AND CONSEQUENCES OF MISMANAGEMENT AND EMBEZZLEMENT OF PUBLIC FUNDS IN CAMEROON

CHAPTER ONE INTRODUCTION 1.1 Background of the Study In today’s world, there is a growing concern globally over the misuse of public funds and the negative effects it has, particularly on the lives of vulnerable populations. Embezzlement, in this context, can be understood as the illegal and deceptive appropriation of financial resources or property by someone entrusted with its management. As noted by Agbor (2017), embezzlement of public money is a criminal act involving the fraudulent and often hidden redirection of funds by individuals in positions of trust. A nation’s wealth stems from the contributions of its citizens, either directly or indirectly. These citizens are committed to meeting both their immediate needs and those of future generations. These collective contributions are stored in the public treasury, which serves as a common financial pool accessible for public use, as explained by Abada and Onyia (2020). The proper use of these resources can improve key social amenities such as schools, hospitals, roads, recreational facilities, and other infrastructure. The purpose of these funds is to reinforce the country’s economic system and democratic institutions. However, instead of fulfilling this purpose, these funds are often misappropriated by officials who manage them, redirecting them into personal accounts at the expense of the poor and vulnerable population in Cameroon. Corruption and the embezzlement of public funds have become deeply ingrained in Cameroonian society. Despite efforts by the government, including a 1998 awareness campaign with the slogan "corruption kills the nation, Public Services are free of charge and not sold" (Agbor, 2021), corruption continues to thrive. Various anti-corruption agencies have been established to fight money laundering and embezzlement (Bakare, 2018). Nevertheless, these mechanisms have largely failed to produce effective results. Over the past several decades, Cameroon has faced significant challenges in ensuring the efficient and transparent management of its public funds. Positioned in Central Africa, Cameroon is a country rich in cultural, linguistic, and geographic diversity, which in itself presents a variety of administrative and governance challenges. Although the country has experienced some economic progress in recent years, it continues to grapple with entrenched corruption and poor financial management. Transparency International’s Corruption Perceptions Index (CPI) consistently ranks Cameroon among countries with high levels of perceived corruption (Transparency International, 2021). This ranking reflects deeper institutional weaknesses, including poor governance structures, weak legal systems, and insufficient accountability mechanisms. These flaws create an environment where public funds are misused, which negatively affects the country’s development. Cameroon’s public sector, a major source of employment and economic activity, has repeatedly been accused of corruption. These accusations involve the diversion of funds intended for crucial services like infrastructure development, education, healthcare, and other public services (World Bank, 2020). The misuse of these resources significantly reduces the government’s ability to deliver quality services, thereby hindering sustainable development. In recent years, the Cameroonian government has attempted to address corruption and improve public financial management. These efforts include establishing anti-corruption agencies and introducing reforms aimed at promoting transparency and accountability. However, progress remains slow and numerous obstacles persist (Ingham, 2021). The issue of embezzlement and mismanagement of public funds is not unique to Cameroon; it is a global problem, particularly prevalent in countries with fragile governance systems. Yet, understanding the specific causes and consequences within the Cameroonian context is crucial for designing effective, targeted interventions to address the problem. This study seeks to examine the root causes and consequences of embezzlement and mismanagement of public funds in Cameroon. The goal is to generate actionable insights and recommendations for policymakers and stakeholders. 1.2 Statement of the Problem The mismanagement and embezzlement of public funds present a serious and ongoing challenge to economic growth and effective governance in Cameroon. Despite the Cameroonian government’s initiatives to combat corruption, the country continues to rank low on global corruption indices, such as those published by Transparency International in 2021. This widespread problem weakens the functioning of public institutions and hampers the delivery of essential services including healthcare, education, and infrastructure. The root causes of this mismanagement often stem from systemic weaknesses such as fragile governance structures, lack of oversight, and limited transparency and accountability in the public sector (World Bank, 2020). These problems are made worse by political corruption and patronage networks, which create opportunities for individuals to divert public funds for personal gain. The impact of mismanagement and embezzlement is far-reaching. Economically, such practices can slow down growth by discouraging investment, increasing operational costs, and diverting resources away from productive sectors (Kwenda, 2021). Socially, these actions worsen inequality and erode public trust in government institutions. Moreover, the consequences are not limited to national boundaries—Cameroon’s international reputation and foreign aid relationships are also affected. Addressing these challenges requires a deep understanding of the specific causes and effects of public fund mismanagement in Cameroon. Such insight is essential for developing targeted policy interventions and strategies that promote greater transparency and accountability in public financial management (Lumumba, 2021). Hence, this study aims to explore both the causes and the effects of the mismanagement and embezzlement of public funds in Cameroon. 1.3 Objective of the Study The main aim of this study is to examine the causes and consequences of the mismanagement and embezzlement of public funds in Cameroon. The specific objectives are as follows: i. To identify the key factors that contribute to the mismanagement and embezzlement of public funds in Cameroon. ii. To assess the impact of these practices on the provision of essential public services and the development of infrastructure in the country. iii. To offer practical recommendations for preventing the mismanagement and embezzlement of public funds in Cameroon. 1.4 Research Questions The following research questions guide the study: i. What are the main factors contributing to the mismanagement and embezzlement of public funds in Cameroon? ii. In what ways has the mismanagement and embezzlement of public funds affected the delivery of essential public services and infrastructure development? iii. What recommendations can be made to prevent the mismanagement and embezzlement of public funds in Cameroon? 1.5 Significance of the Study This study is important for several reasons: Policy Formulation: It can provide policymakers with data-driven insights to help design more effective policies for curbing corruption and improving the management of public funds. This, in turn, could lead to stronger governance structures and improved financial oversight. Academic Contribution: The research can serve as a valuable resource for scholars and students conducting future studies on corruption and governance in Cameroon and similar countries. It may also point out gaps in knowledge that could inspire further investigation. 1.6 Scope of the Study This research focuses specifically on the causes and consequences of the mismanagement and embezzlement of public funds in Cameroon. Empirically, it investigates the underlying factors contributing to these issues, assesses their impact on the delivery of public services and infrastructure, and proposes solutions for curbing the problem. 1.7 Limitations of the Study As with any research endeavor, this study faced some limitations. Limited financial resources restricted the researcher’s ability to access a wide range of materials, literature, and data collection tools (such as internet access, surveys, and interviews), prompting a more modest sample size. Additionally, the researcher had to manage this study alongside other academic responsibilities, which reduced the time available for conducting more extensive research. 1.8 Definition of Terms Mismanagement: The inefficient or improper handling of public resources or finances. Embezzlement: The illegal or dishonest appropriation of funds or assets entrusted to someone, typically by virtue of their official role. Public Funds: Financial resources collected and controlled by the government, mainly through taxes, intended for public service delivery and national development. REFERENCES Transparency International. (2021). Corruption Perceptions Index 2021. Retrieved from Transparency International Website World Bank. (2020). Cameroon Overview. Retrieved from World Bank Website Agbor, A.A. 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