Factors impeding the implementation of oversight mechanisms in South African municipalities

Abstract

Background: Many developing countries are experiencing many financial management and control challenges such as corruption, fraud and misappropriation of public funds. In South Africa, municipalities are among the most affected public institutions.Aim: This article investigated factors impeding the successful implementation of oversight mechanisms meant to promote accountability, with specific reference to South African municipalities.Methods: A qualitative research methodology approach was used, and an extensive review of literature and key policy documents and reports was conducted.Results: The findings revealed the following factors as impeding the implementation of oversight mechanisms in South African municipalities: ineffective internal control tracking, Auditor General’s limitations to regularly make progress checks on recommendations made, nepotism in municipal appointments, futile audit committees and management’s inability to enforce consequences.Conclusion: In the process, this article recommended that municipalities should adopt a radical metamorphosis through greater accountability measures, strengthened monitoring and evaluation mechanisms and improved leadership and accountability.Contribution: This article proposed options for improving the effectiveness of oversight mechanisms at local spheres of government in developing nations such as South Africa. Furthermore, in general, this article contributed to literature on local government oversight mechanisms and local government performance in South Africa.

Measures that may assist non-performing municipalities in improving their performance

“…Laubscher (2012) further posits that this lack of expertise might be because of affirmative action by the SA public sector. As appointments were political, affirmative action brought about nepotistic weaknesses (Laubscher 2012;Moji et al 2022). Inadequate oversight of internal or external municipalities constitutes another underlying cause of poor performance (Glasser & Wright 2020;Moji et al 2022).…”

“…Transparency and public participation solved some of the challenges in SCM by complying with proper procurement processes by promoting the necessary checks and balances. Therefore, when an emergency occurs, adopted emergency measures should be accompanied by adequate control mechanisms such as auditing, oversight, accountability, and reporting (Mathiba 2020;Mishi et al 2022;Moji et al 2022). Mathiba (2020) argued that the lack of reporting and publication in the National Treasury (NT)'s instructions resulted in the inability of citizens to participate and keep public officials accountable.…”

“…The municipalities scored 100% in transparency and public participation, which aligns with legislation. Transparency and public participation promote necessary checks and balances (Mathiba 2020;Moji et al 2022). When a lack of transparency occurs, there is no opportunity for accountability, which increases corruption and misuse of funds as indicated in Table 4a and Table 4b (Mantzaris 2017;Mishi et al 2022).…”

“…https://jolgri.org Open Access of municipalities to obtain clean audits is linked to poor performance and financial management and a lack of governance with most of these issues being because of a lack of adequate skills and knowledge by those charged with governance, thus there is a lack of appropriately capable staff and a lack of budget management skills (Masegare 2016;Mathiba & Lefenya 2019;Moji, Nhede & Masiya 2022;Motubatse, Ngwakwe & Sebola 2017;Zweni, Yan & Uys 2022). Thus, municipalities must be adequately capacitated in the critical areas of their performance, such as governance, financial management and reporting, supply chain management (SCM) and asset management, as this can then result in proper service delivery.…”