This paper aims to provide evidence of a missed opportunity to detect and halt financial fraud and bankruptcy of Enron Corporation early enough. The paper utilizes data from the financial statements of Enron Corporation 10K reports in the US SEC Edgar Data Base from 1997- 2001 to detect financial fraud and imminent bankruptcy of Enron Corporation. Financial fraud and bankruptcy were assessed in terms of Z-score and Days’ Sales Receivables, Gross Margin, Asset Quality, Sales Growth and Total Accruals to Total Assets indices. The modified Altman Z-Score Index and Beneish Models were used to determine the indices for Enron Corporation. The results revealed that the modified Altman Z-Score Model yielded score indexes which signified financial statement manipulation and bankruptcy. While the Beneish Model yielded indices were found to be higher than the non-manipulation means thresholds implying that, receivables and revenues were out of balance for some years. The analysis and results in this paper provide evidence that Enron Corporation engaged in financial fraud resulting into bankruptcy and there was a missed opportunity to detect and halt the financial fraud and bankruptcy as early as 1998 if an effective corporate governance system had been in place. Strengthening of corporate governance frameworks, adoption of proactive strategies to corporate failures and vigilance of the stakeholders in public firms are recommended as some of the ways of avoiding similar scandals in future.
Some researchers have opined that Customary Law regulates the lives of about 80% of Nigerians and that is why it is being argued that Nigerian courts should enforce Customary Laws. The Constitution of Nigeria, 1999 (as amended) has made adequate provisions for States, through their respective Houses of Assembly to establish Area and Customary Courts to hear and determine matters over persons subject to native laws and customs prevailing in the areas of their jurisdiction. These courts being close to the grassroots, citizens, can safely be referred to as grassroots Courts. It is the role of these Courts in the Nigerian legal system that this article sets out to examine. The paper also considers the applicability of Evidence Act to Customary and Area Courts and discusses whether the concept of right to fair hearing is applicable or not to these courts. The paper also examines appeals from the Customary Court