Funding of Parastatals in Enugu State: A Case Study of Enugu State Agricultural Development Programme and Enugu State Environmental Agency (1990-2000).

Abstract

Government is concerned with directing people on how to use available resources in achieving their desired goals. Government therefore shares out the various duties that make up its functions to her respective sub-systems (parastatals inclusive) In an effort to address the problem of persistent food shortage in the country and the maintenance of a clean and healthy environment, the Agricultural Development Programme and the Environmental Protection Agency were introduced. The study were undertaken to appraise the funding of Enugu State Agricultural Development Programme (ENADEP) and Enugu State Environmental Protection Agency (ENSEPA) and the effect of fund on the various activity of the organisations with the aim of suggesting solutions to the problems found. Specifically, answers were sought for the following questions among others; a) Is there adequate and timely funding for the attainment of the organizational objectives? hi Are Staff related factors favourable for the attainment of the the organisational objectives? c) Is there any relationship between finance and other factors of production and output of the organisation? d) Are prudent financial management practices applied? The methods used in data collection includes personal interview and of from annual report unpublished official records and other relevant texts. The information collected were tested with variance, percentages and Chi-Square(X2) test. The following results were found: Funding (counterpart fund inclusive) by both federal and state government was inadequate and untimely; the irregularity in cash-flow resulted in a planning gap; the inadequacy of subvention from the state government affects the performance of staff; and prudent financial management affects the availability of materials and equipment, achievements and the number of activities executed. Both federal and state Government should release its funds timely and adequately so that the World Bank loan could be fully enjoyed. Parastatals should be encouraged to seek for alternative sources of fund and government should guarantee them for long-term bank loans. To get the best from the staff, the organisations should be operated as a corporation or authority with a special scheme of service. Prudent management of funds and other resources as well as staff matters including welfare is areas that need further research.