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In: Accounting

Ethical Case Nwankwo is a senior public servant who has worked in two state public service...

Ethical Case

Nwankwo is a senior public servant who has worked in two state public service departments over a twenty-year period. Prior to this he was employed as a chartered accountant. In the course of performing his duties, involving primarily monetary and budgeting issues, Nwankwo becomes aware that public revenue is being used inappropriately. While he is not directly responsible for this aspect of the budget, he raised his concerns about the channelling of funds from one part of the budget to another to Uche, the head of Division. Nwankwo learns that not only is Uche aware of this practice, but also that he condones it. Not long after, Nwankwo is summoned to talk to Uche and to the Director-general about the issue. In preparation for this meeting Nwankwo prepares a short paper that identifies his understanding of the key issues and presents this to Uche and the Director-General. Due to the politically sensitive nature of the issue, Nwankwo is told that the matter is not within his jurisdiction and therefore he should ‘keep his nose out of it’. This advice is based on the fact that the incumbent government will not tolerate questions about how it puts its budget together but that it also faces electoral defeat if the matter were to be made ‘public’. Nwankwo and his two supervisors are acutely aware of the tensions between the department, the minister and the government. This unease manifests itself around the advice the department provides the minister with, and the advice that the minister and the government want to hear in particular: After much soul searching, Nwankwo decides to obey his supervisors by leaving the matter alone.

1. Identify and explain (3) ethical dilemmas from the list of ethical issues above that are present in the case?

2. What are the differences between “an unethical action” and “an illegal action”

3. How can Nwankwo maintain his professional objectivity in the face of the pressures that he is faced with?

4. If Nwankwo maintains his stance by obeying his supervisors and leave the matter alone, what are the possible implications this decision may have on: • Nwankwo • His Supervisors • Uche • The Public/Government Department(s) to which he is employed

Solutions

Expert Solution

1)Public revenue is being used inappropriately,Nwankwo is in dilemmas what to do in this matter because this was not under his jurisdiction.

Nwankwo is advised that he should away from this matter,because if this matter made publicly,government can face electoral defeat.

Uche & director general are in dilemma whether to raise question before government about usage of fund or to leave the matter as it is.

2)Unethical actions are those actions that is morally not right for a person.It may be legal or illegal.They are those actions which do not conform with generally accepted principals.It cause hurt to society.Example - Refuse to repair the defective product under warranty.

Illegal action -Illegal actions are those actions which are not legal in eyes of law.(To make contravention of law)

Example - Dealing in drugs.

3)Nwankwo can maintain his professional objectivity by disclose the fact about inappropriate usage of fund.As a chartered accoutant it is his duty to make report on this matter.Because it involves the money of public.

4)By obeying the supervisior and leave the matter alone,Nwankwo deemed to be guilty of professional misconduct.

Supervisior involved in unethical action by not to disclose the fact and advise Nwankwo to do this.

Public/government would continue to use the fund of public inappropriately which is ethically not correct.


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