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South Africa’s Municipal Financial Management Patterns from 2016 – 2021

Year 2023, Volume: 9 Issue: 16, 101 - 120, 26.12.2023
https://doi.org/10.25069/spmj.1265896

Abstract

This paper begins by critically interrogating both the establishment phase (1995 – 2006) and the decline phase (2006 – 2016) of the post-apartheid system of modern local government in South Africa. This study then investigates whether a combination of social, political and legal changes that occurred around 2018 were sufficient to influence the performance of the Fourth Local Government Administration (2016 – 2021) in terms of its pattern of financial management and service delivery over its five-year term of office. This is done to determine if the Fourth Administration continued, arrested, or turned around the decline phase of local government.Following a quantitative approach, this study aggregates secondary data from a series of reports from the Auditor-General of South Africa relating to two indicators, namely audit outcomes and patterns of unauthorised, irregular, and fruitless and wasteful expenditure, as well as year-end budget deficits, for approximately 300 municipalities and municipal entities over the full five-year period of the Fourth Local Government Administration’s term of office. Analysis of this data using Pearson’s chi-squared statistic together with Cramer’s V, shows no significant changes in either indicator over these five years. Noting that this is neither a decline nor improvement, the role of the Fourth Local Government Administration as a slow turning point is discussed, together with recommendations for the new Fifth Local Government Administration.

References

  • AGSA / Auditor-General (South Africa). (2022), Consolidated General Report on the Local Government Audit Outcomes MFMA 2020-21, https://www.agsa.co.za/Portals/0/Reports/MFMA/2020-21/FINAL_MFMA%202020-21%20GR_15%20June_2022%20tabling.pdf?ver=2022-06-15-095648-557 (18 February 2023).
  • Bardosh, K. (2023), How Did the COVID pandemic response harm society? A Global Evaluation and State of Knowledge Review (2020-21), Available at SSRN: http://dx.doi.org/10.2139/ssrn.4447806.
  • Deliwe, M. C. (2019), The potential impact of the Public Audit Amendment Act of 2018 on the effectiveness of the Auditor-General South Africa, Southern African Journal of Accountability and Auditing Research, Vol. 21, No. 1, pp. 47-57.
  • Dhansay, A. (2022), Impact of the Public Audit Amendment Act on the Auditor-General of South Africa’s ability to safeguard the quality of democracy, Southern African Journal of Accountability and Auditing Research, Vol. 24, No. 1, pp. 39-50.
  • Enaifoghe, A. (2022), Challenges of municipal service delivery and instruments for enhancing South African local government administration, African Journal of Development Studies, Vol. 12, No. 3, pp. 105-124.
  • Erasmus, L. J. (2022), The auditing profession’s role in terms of accountability: A South African perspective, Southern African Journal of Accountability and Auditing Research, Vol. 24, No. 1, pp. 1-6.
  • Fourie, D., & Malan, C. (2022), Addressing the endemic consequences of corruption in the South African local government public sector, Corruption - New Insights [Working Title], doi: 10.5772/intechopen.108154 (18 February 2023).
  • Gasela, M. M. (2022), The impact of material irregularity provisions of the Public Audit Act on accountability, oversight and governance in the Northern Cape province of South Africa, Africa’s Public Service Delivery and Performance Review, Vol. 10, No. 1, p 601.
  • Goryakin, Y., Revill, P., Mirelman, A., Sweeney, R., Ochalek, J.M. and Suhrcke, M.E. (2017), Public financial management and health service delivery: a literature review, Overseas Development Institute Report. London. https://eprints.whiterose.ac.uk/116571/ (18 February 2023).
  • IBM. (2023a), Cognos Analytics: Significance value, https://www.ibm.com/docs/en/cognos-analytics/11.1.0?topic=terms-significance-value (18 February 2023).
  • IBM. (2023b), Cognos Analytics: Cramer’s V, https://www.ibm.com/docs/en/cognos-analytics/11.1.0?topic=terms-cramrs-v (18 February 2023).
  • Jitsing, A., Brey, Z., Wall, K., Craig, S., Thosago, M., & Munro, S. (2019), State of municipal finance management: an overview of capacity and challenges. Civil Engineering / Siviele Ingenieurswese, Vol. 27, No. 1, pp 39-45.
  • Kamara, J. K., Mahumud, R. A., Hounsell, B., & Renzaho, A. M. (2023), Variations in COVID-19 interventions: A systematic review and meta-ethnography of government policy responses and characteristics in eastern Africa, International Journal of Disaster Risk Reduction, Vol. 96, 103909.
  • Khaile, T. S., Davids, G. J., and Khaile, F. T. (2021), Limitations of the principal-agent theory to explain the problem of non-compliance in South African municipalities, African Journal of Governance and Development, Vol. 10, No. 1, pp. 164-183.
  • Kroukamp, H. (2016), Strategies to restore confidence in South African local government, African Journal of Public Affairs, Vol. 9, No. 3, pp. 105-116.
  • Kroukamp, H., & Cloete, F. (2018), Improving professionalism in South African local government, Acta Academica, Vol. 50, No. 1, pp. 61-80.
  • Madumo, O. S., & Koma, S. B. (2019). Local government reform in South Africa: The quest for review and repositioning of municipal administration, Journal of Reviews on Global Economics, Vol. 8, pp 581-590.
  • Mantzaris, E. A. (2014), Municipal financial management to fight corruption and enhance development: A holistic approach, African Journal of Public Affairs, Vol. 7, No. 2, pp. 80-92.
  • Marais, A., Sheik, A., and Schoeman, F. (2022), Sustainability in the context of the South African municipalities. CIGFARO Journal (Chartered Institute of Government Finance Audit and Risk Officers), Vol. 22, No. 4, pp. 10-13.
  • Martin, M.E. and Solomon, H., (2016), Understanding the phenomenon of ‘state capture’ in South Africa, Southern African Peace and Security Studies, Vol, 5, No. 1, pp. 21-35.
  • Masuku, M. M. & Jili, N. N. (2019), Public service delivery in South Africa: The political influence at local government level, Journal of Public Affairs, Vol. 19: e1935. https://doi.org/10.1002/pa.1935 (18 February 2023).
  • Mathebula, N. (2014), Public sector financial management, morality, culture and law, Journal of Public Administration, Vol. 49, No. 3, pp. 936-945.
  • Mngomzulu, B. R. (2023), Debunking the “New Dawn” myth: A comparative analysis of South Africa and Zimbabwe, African Journal of Political Science and International Relations, Vol. 17, No. 3, pp 28-36.
  • Mnguni, S., & Subban, M. (2022), Critical considerations to achieve and maintain clean audit outcomes in South African metropolitan municipalities, Administratio Publica, Vol. 30, No. 3, pp. 148-170.
  • Moji, L., Nhede, N. T., & Masiya, T. (2022), Factors impeding the implementation of oversight mechanisms in South African municipalities, Journal of Local Government Research and Innovation, Vol. 3, 8 pages.
  • Mulaudzi, M. and Liebenberg, I., (2017), Planning and socio-economic interventions in a developmental state: The case of South Africa, Journal of Public Administration, Vol. 52, No. 1, pp. 29-51.
  • National Planning Commission. (2011), National Development Plan: Vision for 2030. https://www.gov.za/sites/default/files/gcis_document/201409/devplan2.pdf (18 February 2023).
  • National Treasury (n.d.), MFMA Circulars. http://mfma.treasury.gov.za/Circulars/Pages/default.aspx (18 February 2023).
  • Rapanyane, M. B. (2022), Key challenges facing the African National Congress-led government in South Africa: An afrocentric perspective, Insight on Africa, Vol. 14, No. 1, pp 57-72.
  • Selepe, M. M., & Magagula, M. L. (2023), Conceptualization of accountability and municipal finance management within the South African local government environment, International Journal of Social Science Research and Review, Vol. 6, No. 8, pp 230-246.
  • Zweni, A., Yan, B., and Juta L. B. (2022), The malady of perpetual municipal finance mismanagement: Designing a leadership framework as a panacea. African Journal of Development Studies, Vol. 12, No. 1, pp. 169-188

South Africa’s Municipal Financial Management Patterns from 2016 – 2021

Year 2023, Volume: 9 Issue: 16, 101 - 120, 26.12.2023
https://doi.org/10.25069/spmj.1265896

Abstract

Bu makale, Güney Afrika'daki apartheid sonrası modern yerel yönetim sisteminin hem kuruluş aşamasını (1995 – 2006) hem de düşüş aşamasını (2006 – 2016) eleştirel bir şekilde sorgulayarak başlamaktadır. Bu çalışma daha sonra, 2018 civarında meydana gelen sosyal, politik ve yasal değişikliklerin bir kombinasyonunun, Beşinci Dönemdeki mali yönetim ve hizmet sunumu modeli açısından Dördüncü Yerel Yönetim İdaresinin (2016 – 2021) performansını etkilemek için yeterli olup olmadığını araştırmaktadır. yıllık görev süresi. Bu, Dördüncü İdarenin devam edip etmediğini, tutuklanıp tutuklanmadığını veya yerel yönetimin gerileme aşamasını tersine çevirip çevirmediğini belirlemek için yapılır. Nicel bir yaklaşımın ardından bu çalışma, Güney Afrika Baş Denetçisinin denetim sonuçları ve izinsiz, düzensiz, sonuçsuz ve savurgan harcama kalıpları ve yılsonu olmak üzere iki göstergeyle ilgili bir dizi raporundan ikincil verileri toplar. Dördüncü Yerel Yönetim İdaresi'nin beş yıllık görev süresinin tamamı boyunca yaklaşık 300 belediye ve belediye birimi için bütçe açıkları. Bu verilerin Cramer's V ile birlikte Pearson ki-kare istatistiği kullanılarak analizi, bu beş yıl boyunca hiçbir göstergede önemli bir değişiklik göstermez. Bunun ne bir gerileme ne de bir gelişme olduğu kaydedilerek, Dördüncü Yerel Yönetim İdaresi'nin yavaş bir dönüm noktası olarak rolü ve yeni Beşinci Yerel Yönetim için öneriler tartışılıyor.

References

  • AGSA / Auditor-General (South Africa). (2022), Consolidated General Report on the Local Government Audit Outcomes MFMA 2020-21, https://www.agsa.co.za/Portals/0/Reports/MFMA/2020-21/FINAL_MFMA%202020-21%20GR_15%20June_2022%20tabling.pdf?ver=2022-06-15-095648-557 (18 February 2023).
  • Bardosh, K. (2023), How Did the COVID pandemic response harm society? A Global Evaluation and State of Knowledge Review (2020-21), Available at SSRN: http://dx.doi.org/10.2139/ssrn.4447806.
  • Deliwe, M. C. (2019), The potential impact of the Public Audit Amendment Act of 2018 on the effectiveness of the Auditor-General South Africa, Southern African Journal of Accountability and Auditing Research, Vol. 21, No. 1, pp. 47-57.
  • Dhansay, A. (2022), Impact of the Public Audit Amendment Act on the Auditor-General of South Africa’s ability to safeguard the quality of democracy, Southern African Journal of Accountability and Auditing Research, Vol. 24, No. 1, pp. 39-50.
  • Enaifoghe, A. (2022), Challenges of municipal service delivery and instruments for enhancing South African local government administration, African Journal of Development Studies, Vol. 12, No. 3, pp. 105-124.
  • Erasmus, L. J. (2022), The auditing profession’s role in terms of accountability: A South African perspective, Southern African Journal of Accountability and Auditing Research, Vol. 24, No. 1, pp. 1-6.
  • Fourie, D., & Malan, C. (2022), Addressing the endemic consequences of corruption in the South African local government public sector, Corruption - New Insights [Working Title], doi: 10.5772/intechopen.108154 (18 February 2023).
  • Gasela, M. M. (2022), The impact of material irregularity provisions of the Public Audit Act on accountability, oversight and governance in the Northern Cape province of South Africa, Africa’s Public Service Delivery and Performance Review, Vol. 10, No. 1, p 601.
  • Goryakin, Y., Revill, P., Mirelman, A., Sweeney, R., Ochalek, J.M. and Suhrcke, M.E. (2017), Public financial management and health service delivery: a literature review, Overseas Development Institute Report. London. https://eprints.whiterose.ac.uk/116571/ (18 February 2023).
  • IBM. (2023a), Cognos Analytics: Significance value, https://www.ibm.com/docs/en/cognos-analytics/11.1.0?topic=terms-significance-value (18 February 2023).
  • IBM. (2023b), Cognos Analytics: Cramer’s V, https://www.ibm.com/docs/en/cognos-analytics/11.1.0?topic=terms-cramrs-v (18 February 2023).
  • Jitsing, A., Brey, Z., Wall, K., Craig, S., Thosago, M., & Munro, S. (2019), State of municipal finance management: an overview of capacity and challenges. Civil Engineering / Siviele Ingenieurswese, Vol. 27, No. 1, pp 39-45.
  • Kamara, J. K., Mahumud, R. A., Hounsell, B., & Renzaho, A. M. (2023), Variations in COVID-19 interventions: A systematic review and meta-ethnography of government policy responses and characteristics in eastern Africa, International Journal of Disaster Risk Reduction, Vol. 96, 103909.
  • Khaile, T. S., Davids, G. J., and Khaile, F. T. (2021), Limitations of the principal-agent theory to explain the problem of non-compliance in South African municipalities, African Journal of Governance and Development, Vol. 10, No. 1, pp. 164-183.
  • Kroukamp, H. (2016), Strategies to restore confidence in South African local government, African Journal of Public Affairs, Vol. 9, No. 3, pp. 105-116.
  • Kroukamp, H., & Cloete, F. (2018), Improving professionalism in South African local government, Acta Academica, Vol. 50, No. 1, pp. 61-80.
  • Madumo, O. S., & Koma, S. B. (2019). Local government reform in South Africa: The quest for review and repositioning of municipal administration, Journal of Reviews on Global Economics, Vol. 8, pp 581-590.
  • Mantzaris, E. A. (2014), Municipal financial management to fight corruption and enhance development: A holistic approach, African Journal of Public Affairs, Vol. 7, No. 2, pp. 80-92.
  • Marais, A., Sheik, A., and Schoeman, F. (2022), Sustainability in the context of the South African municipalities. CIGFARO Journal (Chartered Institute of Government Finance Audit and Risk Officers), Vol. 22, No. 4, pp. 10-13.
  • Martin, M.E. and Solomon, H., (2016), Understanding the phenomenon of ‘state capture’ in South Africa, Southern African Peace and Security Studies, Vol, 5, No. 1, pp. 21-35.
  • Masuku, M. M. & Jili, N. N. (2019), Public service delivery in South Africa: The political influence at local government level, Journal of Public Affairs, Vol. 19: e1935. https://doi.org/10.1002/pa.1935 (18 February 2023).
  • Mathebula, N. (2014), Public sector financial management, morality, culture and law, Journal of Public Administration, Vol. 49, No. 3, pp. 936-945.
  • Mngomzulu, B. R. (2023), Debunking the “New Dawn” myth: A comparative analysis of South Africa and Zimbabwe, African Journal of Political Science and International Relations, Vol. 17, No. 3, pp 28-36.
  • Mnguni, S., & Subban, M. (2022), Critical considerations to achieve and maintain clean audit outcomes in South African metropolitan municipalities, Administratio Publica, Vol. 30, No. 3, pp. 148-170.
  • Moji, L., Nhede, N. T., & Masiya, T. (2022), Factors impeding the implementation of oversight mechanisms in South African municipalities, Journal of Local Government Research and Innovation, Vol. 3, 8 pages.
  • Mulaudzi, M. and Liebenberg, I., (2017), Planning and socio-economic interventions in a developmental state: The case of South Africa, Journal of Public Administration, Vol. 52, No. 1, pp. 29-51.
  • National Planning Commission. (2011), National Development Plan: Vision for 2030. https://www.gov.za/sites/default/files/gcis_document/201409/devplan2.pdf (18 February 2023).
  • National Treasury (n.d.), MFMA Circulars. http://mfma.treasury.gov.za/Circulars/Pages/default.aspx (18 February 2023).
  • Rapanyane, M. B. (2022), Key challenges facing the African National Congress-led government in South Africa: An afrocentric perspective, Insight on Africa, Vol. 14, No. 1, pp 57-72.
  • Selepe, M. M., & Magagula, M. L. (2023), Conceptualization of accountability and municipal finance management within the South African local government environment, International Journal of Social Science Research and Review, Vol. 6, No. 8, pp 230-246.
  • Zweni, A., Yan, B., and Juta L. B. (2022), The malady of perpetual municipal finance mismanagement: Designing a leadership framework as a panacea. African Journal of Development Studies, Vol. 12, No. 1, pp. 169-188
There are 31 citations in total.

Details

Primary Language English
Subjects Urban Policy
Journal Section Articles
Authors

Brad Bell

Daniel Govender

Early Pub Date December 23, 2023
Publication Date December 26, 2023
Submission Date March 16, 2023
Published in Issue Year 2023 Volume: 9 Issue: 16

Cite

APA Bell, B., & Govender, D. (2023). South Africa’s Municipal Financial Management Patterns from 2016 – 2021. Strategic Public Management Journal, 9(16), 101-120. https://doi.org/10.25069/spmj.1265896

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