Problems Facing Government Corporation

INTRODUCTION
This chapter deals with following background of the study.
Statement of the Problems.
Purpose of the Study.
Significance of the Study.
Scope of the Study.
Research Question and
Research Hypothesis
Background of the Study
There has never been any argument over the link that exists between government and co-operation. Government is said to be the group of people who are responsible for controlling and organizing a country or a state. It is also seen as one who is charted by a state and given many legal rights as an entity separated from its owners.
Asogwa (2008) defined government as a process agent or a structure. As a process it becomes the act or ability to convert the desire or will of a group to conform with the behaviour of these given the authority to direct the affairs of members of a society.
Corporation is known as an organized unit which utilizes the basic economic resources to create utility in order to achieve certain aims and goals.
Government corporation is known as public corporation. It is a legal entity or legal department that understands commercial activities on behalf of the owner government.
Odoh (2006) defined government corporation as a part of the organic whole or economy established and operated by the government or it’s agencies for the purpose of the production of goods and services for governed.
The main aim and objective of it’s establishment is to provide the services to the public.
Anambra Motor Manufacturing Company Incorporated on the 17th of January 1977 was commissioned on the 8th of July 1980 and started official production in January 1981, the company which has a strength of seven hundred and ninety-four and an installed capacity of producing seven thousand, five hundred commercial vehicles (Tnick assembly, annually is presently utilizing fifteen (15%) of installed capacity.
It’s products range includes Mercedes Benz, trunks and buses of various sizes, firefighting vehicles, ambulance, refuse disposal vans as well as vehicles refurbishment. It is however worthy of the note that it’s production, activity is limited to assembly and spare parts sales.
Incorporated with an authorized and fully paid up share capital of seven million naira ANAMMCO was set up under a joint agreement between Nigeria and Diamler Mercedes Benz of Germany. Although it was initially licensed to produce trucks it later went into the production of buses. It is set up with the objectives of manufacturing marketing Mercedes Benz, trucks and buses, assisting in manpower development through technology training, alleviating transport problems in the country helping to reduce unemployment in the country. ANAMMCO is located at Emene near Enugu with company operation organized into six functional divisions and numerous departments under the divisions it’s board of directors is made up to six members Anambra Motor Manufacturing Company has two workers unions, the senior and junior staff unions.

Statement of the Problems
A lot of problems are facing ANAMMCO.
These problems include:
i. Political interference from the principal shareholders (the five Eastern State Governments).
ii. Lack of sufficient fund.
iii. Mismanagement by those that are entrusted with the responsibility of overseeing the affairs of the company.
iv. Lack of dedicated trade union.
ANAMMCO is partially being owned by the five Eastern State Governments. These state governments wield great influence on the activities of the company. Some relatives of those at the corridor of power in these states, with little or no business acumen, are not only given appointments in the company but are also made to man some sensitive positions. Some of these relatives and party faithfuls are sometimes appointed as managers irrespective of their deficiencies. Another serious problem facing ANAMMCO is lack of committed unionism. Trade union generally helps in moderation of the activities of both the workers and the management. If the union moderates negatively it leads to backward effect on the company. In ANAMMCO the union executive is not working for the betterment of the company but for its selfish interest. The management sometimes sacks some workers for no reason but the union does not bother.

Purpose of the Study
The purpose of this study are:
i. To identify the problem facing the ANAMMCO in its day to day business activities.
ii. To identify the extent the share holder of ANAMMCO funded the company.
iii. To identify the factors that hinders the growth of ANAMMCO

Significance of the Study
This study would be significant to
It will unravel the problems that hinder the smooth running of Anambra Motor Manufacturing Company of Nigeria to all staff of the company.
It will be beneficial to all the government corporations who in one way or the other experiences the problems that ANAMMCO is facing, this research will help them to enhance the growth the company.

The study will be beneficial to future researchers who might find the report of this research worthy for literature review.

Scope of the Study
The study covers the problems being encountered by government corporations particularly ANAMMCO situated at Emene Enugu.

Research Questions
The following research questions guided the study.
 To what extent have the shareholders of ANAMMCO founded the company?
 To What extent have the shareholders of ANAMMCO intervene in the day to day activities of the company?
 What are the security measures against fraudulent practices towards the company?
 What are the factors that hinder the growth of ANAMMCO?

Research Hypothesis
H1: Insufficient funds from the shareholders have no significant effect on the activities of ANAMMCO.
H2: Insufficient funds from the shareholders have significant effect on the activities of ANAMMCO.
H1: inadequate security as has not effect on the economic of growth of ANAMMCO.
H2: Inadequate security as has effect on the economic of growth of ANAMMCO.