The study is concerned with an investigation into fraud and financial malpractices as a leading factor in business failure and eventual liquidation. A case study of Nigerian Telecommunication Limited (NITEL). By way of background, the study commenced with an overview of the business environments and its effects on business growth and survival. Using NITEL as a case study, it was established that inspite of its privatization, NITEL is still saddled with the problem of bad image arising mostly from fraudulent practices. With the above stated problem, the specific objectives of the study were:
1. To ascertain why NITEL Plc is still saddled with problem.
2. To determine whether there is significant weakness in NITEL internal control system.
Data collected were analysed using weighted mean and ranking order. Major findings of the study were:
(i) The study revealed that the NITEL is unable to achieve its objective
(ii) It was also revealed that fraud and financial malpractices was the most important factors that has contributed poor performance of NITEL.At the end, the following recommendation were made:
(i) NITEL management should design appropriate policies.
(ii) The organisation should also strengthened its internal control system.