A Financial Sustainability Model for the South African Local Government
- Authors: Mhlanga, Shepherd
- Date: 2019
- Subjects: Local government -- South Africa -- Eastern Cape -- Finance Municipal finance -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , D.Admin
- Identifier: http://hdl.handle.net/10353/13715 , vital:39699
- Description: Local government financial sustainability leverages a local municipality’s capabilities to conceptualize and implement an array of its developmental programmes. This thesis evaluates the state of the initiatives for bolstering financial sustainability in the increasingly complex contemporary South African local government sphere. The motive of the study was to identify major paradoxes and a local government financial sustainability model that could be extracted and suggested for mitigating such constraints. Using a meta-synthesis as a principal technique in content analysis, findings revealed that major determinants of local government financial sustainability are often linked to the application of the four-step’s processes in strategic cyclical financial sustainability framework and three foundational constructs for financial sustainability management. The four-step’s processes in strategic cyclical financial sustainability framework were found to aid environmental analysis, identification of the sources of revenues and revenue generation, managing the utilization of the generated revenues and monitoring and evaluation. As it emerged from the findings, these positive effects of strategic cyclical financial sustainability framework are often illuminated by three foundational constructs for financial sustainability that leverage financial risk management, governance and leadership. However, in lieu of the application of relevant mitigating strategies, it also emerged from the analysis of the findings that initiatives that bolster financial sustainability may still be constrained by poor analysis and identification of the level of financial sustainability maturity. Other paradoxes were found to be linked to lack of suitable government financing models, poor strategic financial planning and budgeting as well as lack of effective models for managing equity. However, even in the midst of such paradoxes, findings still indicated that the concept of financial sustainability is a notion which is increasingly being emphasized by the South African local government sphere. To leverage municipal financial sustainability, most municipalities were found to use financial sustainability models and methods such as central financial grant system, SALGA’s model for financial sustainability, investment in revenue-generating activities and managing municipal operational efficiency as a driver of cost 4 | P a g e minimisation. However, despite such significant strides, findings still revealed that even with various socio-economic initiatives undertaken to leverage financial sustainability of the South African local government, the state of financial sustainability in the South African local government sphere seems to be at risk as viewed from such issues as compliance, systematic and strategic levels. As it emerged from the findings, this is attributable to the fact that most initiatives for improving financial sustainability in the South African local government are often still constrained by inadequate municipal capacity, limited income-generating activities, deficient local government procurement system and poor leadership and governance. Such findings seem consonant with theoretical findings that signified the major paradoxes of financial sustainability in the contemporary public sector organisations are often associated with poor analysis and identification of the level of financial sustainability maturity, lack of suitable government financing models, poor strategic financial planning and budgeting and lack of effective models for managing equity. Drawing from these findings, it is argued it is critical that the Department of Local Government adopts and applies the local government financial sustainability model akin to the conceptual model suggested in Figure 1. The application of such a model would require integration and use of the four main pillars (strategic financial planning, income diversification, sound financial administration and management, and own income generation) for local government financial sustainability, three foundational constructs (financial risk management, financial governance and financial ethical leadership) for local government financial sustainability, and three foundational nonfinancial constructs (political stability, fiscal and economic stability, forecasting and sensing to mitigate the devastating negative effects of natural calamities and disaster) for local government financial sustainability. It was further argued that all these must be accompanied by measurement of the overall maturity of the financial sustainability of the local municipality using four perspectives (liquidity, resilience, service and fiscal responsibility and public confidence) of local government financial sustainability in conjunction with the five spectrums (at risk, compliance-based, incremental, strategic and systematic) of local government financial sustainability.
- Full Text:
- Date Issued: 2019
- Authors: Mhlanga, Shepherd
- Date: 2019
- Subjects: Local government -- South Africa -- Eastern Cape -- Finance Municipal finance -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , D.Admin
- Identifier: http://hdl.handle.net/10353/13715 , vital:39699
- Description: Local government financial sustainability leverages a local municipality’s capabilities to conceptualize and implement an array of its developmental programmes. This thesis evaluates the state of the initiatives for bolstering financial sustainability in the increasingly complex contemporary South African local government sphere. The motive of the study was to identify major paradoxes and a local government financial sustainability model that could be extracted and suggested for mitigating such constraints. Using a meta-synthesis as a principal technique in content analysis, findings revealed that major determinants of local government financial sustainability are often linked to the application of the four-step’s processes in strategic cyclical financial sustainability framework and three foundational constructs for financial sustainability management. The four-step’s processes in strategic cyclical financial sustainability framework were found to aid environmental analysis, identification of the sources of revenues and revenue generation, managing the utilization of the generated revenues and monitoring and evaluation. As it emerged from the findings, these positive effects of strategic cyclical financial sustainability framework are often illuminated by three foundational constructs for financial sustainability that leverage financial risk management, governance and leadership. However, in lieu of the application of relevant mitigating strategies, it also emerged from the analysis of the findings that initiatives that bolster financial sustainability may still be constrained by poor analysis and identification of the level of financial sustainability maturity. Other paradoxes were found to be linked to lack of suitable government financing models, poor strategic financial planning and budgeting as well as lack of effective models for managing equity. However, even in the midst of such paradoxes, findings still indicated that the concept of financial sustainability is a notion which is increasingly being emphasized by the South African local government sphere. To leverage municipal financial sustainability, most municipalities were found to use financial sustainability models and methods such as central financial grant system, SALGA’s model for financial sustainability, investment in revenue-generating activities and managing municipal operational efficiency as a driver of cost 4 | P a g e minimisation. However, despite such significant strides, findings still revealed that even with various socio-economic initiatives undertaken to leverage financial sustainability of the South African local government, the state of financial sustainability in the South African local government sphere seems to be at risk as viewed from such issues as compliance, systematic and strategic levels. As it emerged from the findings, this is attributable to the fact that most initiatives for improving financial sustainability in the South African local government are often still constrained by inadequate municipal capacity, limited income-generating activities, deficient local government procurement system and poor leadership and governance. Such findings seem consonant with theoretical findings that signified the major paradoxes of financial sustainability in the contemporary public sector organisations are often associated with poor analysis and identification of the level of financial sustainability maturity, lack of suitable government financing models, poor strategic financial planning and budgeting and lack of effective models for managing equity. Drawing from these findings, it is argued it is critical that the Department of Local Government adopts and applies the local government financial sustainability model akin to the conceptual model suggested in Figure 1. The application of such a model would require integration and use of the four main pillars (strategic financial planning, income diversification, sound financial administration and management, and own income generation) for local government financial sustainability, three foundational constructs (financial risk management, financial governance and financial ethical leadership) for local government financial sustainability, and three foundational nonfinancial constructs (political stability, fiscal and economic stability, forecasting and sensing to mitigate the devastating negative effects of natural calamities and disaster) for local government financial sustainability. It was further argued that all these must be accompanied by measurement of the overall maturity of the financial sustainability of the local municipality using four perspectives (liquidity, resilience, service and fiscal responsibility and public confidence) of local government financial sustainability in conjunction with the five spectrums (at risk, compliance-based, incremental, strategic and systematic) of local government financial sustainability.
- Full Text:
- Date Issued: 2019
Assessment of the role of the board of directors in the implementation of corporate governance in the state owned entities: a case in the Eastern Cape Province
- Authors: Makhala, Nombuyiselo
- Date: 2019
- Subjects: Corporate governance Directors of corporations
- Language: English
- Type: Thesis , Doctoral , D.Admin
- Identifier: http://hdl.handle.net/10353/13642 , vital:39687
- Description: Corporate governance is a well-recognized governing method, which ensures that the organization achieves its goals. This concept has received too much attention due to the number of reported corporate scandals in both public and private entities. Due to these highly publicized governance failures, the role of Board of Directors in the implementation of corporate governance has been questioned. Their role has been the topic of interest. The main aim of this study was to assess the role of the Board of Directors in the implementation of Corporate Governance in the State Owned Entities in the Eastern Cape Province. It also aimed to determine the strategies and mechanisms that can be used to enhance the role played by the Board of directors in the successful implementation of corporate governance in the public entities. This research was qualitative in nature and as part of this approach data was gathered through questionnaires and interviews. For this study, small scale and manageable sample was used. The sample was selected with the view that all the participants selected were experienced and directly involved in the policy and decision-making as well as in implementation of corporate governance in the state-owned entities. The secondary data was collected through the audit reports, performance, and annual reports of the different public entities. The findings of this study revealed that some Board of Directors are unable to play the effective role in the implementation of corporate governance due to lack of experience and skills required. The research has also revealed that the Boards are not effective in their role due to lax in enforcing accountability by the shareholder. The findings on poor performance management of the Boards is because of no standardized performance management system for the Eastern Cape Province public entities in place. Political deployment of board members had an impact in the independency and objectivity of the boards. The study recommends the appointment of skilled and qualifying board members, training and induction of newly appointed be conducted. Development of accountability framework for all the boards of the public entities in the Eastern Cape. For the Boards to successfully play an effective role in the implementation of corporate governance, adequate budget should be allocated to the public entities. Lastly, the development of the standardized performance management system and framework with prescribed key responsibility areas for all the Boards of the state owned entities will assist the Boards in knowing what is expected of them.
- Full Text:
- Date Issued: 2019
- Authors: Makhala, Nombuyiselo
- Date: 2019
- Subjects: Corporate governance Directors of corporations
- Language: English
- Type: Thesis , Doctoral , D.Admin
- Identifier: http://hdl.handle.net/10353/13642 , vital:39687
- Description: Corporate governance is a well-recognized governing method, which ensures that the organization achieves its goals. This concept has received too much attention due to the number of reported corporate scandals in both public and private entities. Due to these highly publicized governance failures, the role of Board of Directors in the implementation of corporate governance has been questioned. Their role has been the topic of interest. The main aim of this study was to assess the role of the Board of Directors in the implementation of Corporate Governance in the State Owned Entities in the Eastern Cape Province. It also aimed to determine the strategies and mechanisms that can be used to enhance the role played by the Board of directors in the successful implementation of corporate governance in the public entities. This research was qualitative in nature and as part of this approach data was gathered through questionnaires and interviews. For this study, small scale and manageable sample was used. The sample was selected with the view that all the participants selected were experienced and directly involved in the policy and decision-making as well as in implementation of corporate governance in the state-owned entities. The secondary data was collected through the audit reports, performance, and annual reports of the different public entities. The findings of this study revealed that some Board of Directors are unable to play the effective role in the implementation of corporate governance due to lack of experience and skills required. The research has also revealed that the Boards are not effective in their role due to lax in enforcing accountability by the shareholder. The findings on poor performance management of the Boards is because of no standardized performance management system for the Eastern Cape Province public entities in place. Political deployment of board members had an impact in the independency and objectivity of the boards. The study recommends the appointment of skilled and qualifying board members, training and induction of newly appointed be conducted. Development of accountability framework for all the boards of the public entities in the Eastern Cape. For the Boards to successfully play an effective role in the implementation of corporate governance, adequate budget should be allocated to the public entities. Lastly, the development of the standardized performance management system and framework with prescribed key responsibility areas for all the Boards of the state owned entities will assist the Boards in knowing what is expected of them.
- Full Text:
- Date Issued: 2019
The Effects of Municipal Amalgamations on Organisational Culture: A Case-Study of Raymond Mhlaba Local Municipality in Eastern Cape Province.
- Authors: Ndlela, Likhaya Hlubikazi
- Date: 2019
- Subjects: Corporate culture Organizational change
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: http://hdl.handle.net/10353/13848 , vital:39717
- Description: In the study, the researcher assessed the effects of amalgamations on organisational culture in the Raymond Mhlaba Local Municipality in Eastern Cape Province. The study examined whether the current organisational structure is conducive to a sound working environment, analysed change management interventions provided after the amalgamation and made recommendations to the local municipality on the measures to be taken to provide quality service delivery, improved communication networks and challenges that affect organisational culture. The entire research process was guided by the above research objectives and questions that strive to assess the outcomes of the effects of an amalgamation on organisational culture in Raymond Mhlaba. The study involved a qualitative research approach, and interviews were conducted for the administrative employees of the municipality. The findings of the study identified that the municipal amalgamation has negative effects on organisational culture, especially at the beginning of the amalgamation. The study established that there are many factors that led to the negative effect of an amalgamation on organisational culture, such as lack of management communication, consultation and planning strategies, preferential treatment, conflict and confusion, service delivery and failure to provide change management interventions. The study also revealed that the amalgamation came with better opportunities in terms of salary scales as the municipality is be more capacitated. These factors can be prevented to ensure the success of amalgamations in Local Government. Finally, the study makes recommendations for the municipality on how 10 to handle the amalgamation better, to result to a positive effect on organisational culture.
- Full Text:
- Date Issued: 2019
- Authors: Ndlela, Likhaya Hlubikazi
- Date: 2019
- Subjects: Corporate culture Organizational change
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: http://hdl.handle.net/10353/13848 , vital:39717
- Description: In the study, the researcher assessed the effects of amalgamations on organisational culture in the Raymond Mhlaba Local Municipality in Eastern Cape Province. The study examined whether the current organisational structure is conducive to a sound working environment, analysed change management interventions provided after the amalgamation and made recommendations to the local municipality on the measures to be taken to provide quality service delivery, improved communication networks and challenges that affect organisational culture. The entire research process was guided by the above research objectives and questions that strive to assess the outcomes of the effects of an amalgamation on organisational culture in Raymond Mhlaba. The study involved a qualitative research approach, and interviews were conducted for the administrative employees of the municipality. The findings of the study identified that the municipal amalgamation has negative effects on organisational culture, especially at the beginning of the amalgamation. The study established that there are many factors that led to the negative effect of an amalgamation on organisational culture, such as lack of management communication, consultation and planning strategies, preferential treatment, conflict and confusion, service delivery and failure to provide change management interventions. The study also revealed that the amalgamation came with better opportunities in terms of salary scales as the municipality is be more capacitated. These factors can be prevented to ensure the success of amalgamations in Local Government. Finally, the study makes recommendations for the municipality on how 10 to handle the amalgamation better, to result to a positive effect on organisational culture.
- Full Text:
- Date Issued: 2019
The use of the performance management system as management tool to accelerate service delivery in municipalities, case study Amathole District Municipality Eastern Cape
- Authors: Nako, Mkhululi
- Date: 2019
- Subjects: Performance -- Management Public administration Local government
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: http://hdl.handle.net/10353/13824 , vital:39715
- Description: In the recent years have been several public protests in our communities which was a result of slow pace in the provision of services by the municipalities in the district which has led to the use of the performance management system in order to accelerate the service delivery. The study focused on the usage of the system like performance management to accelerate service delivery in Amatole District Municipality (ADM) in the Eastern Cape Province. There is limited research regarding the usage of the system like performance management to accelerate service delivery in Amatole District Municipality. Mixed research methodology was used. The sample (n=10) comprised of individual involved in performance management systems. Data was collected through the questionnaire method and both qualitative and quantitative methods were used for data analysis. The study results show that while the performance management systems are being practiced at the municipality it is not done effectively and efficiently. In addition, not all municipal employees had the necessary knowledge and expertise to implement PMS. It can also be noted that every respondent in the study agreed that performance management systems do accelerate service delivery if done efficiently. The study recommends that local government should not only focus on their plans on dealing with backlogs but also on the rapid development taking place and the performance management system framework should cater for individual performance.
- Full Text:
- Date Issued: 2019
- Authors: Nako, Mkhululi
- Date: 2019
- Subjects: Performance -- Management Public administration Local government
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: http://hdl.handle.net/10353/13824 , vital:39715
- Description: In the recent years have been several public protests in our communities which was a result of slow pace in the provision of services by the municipalities in the district which has led to the use of the performance management system in order to accelerate the service delivery. The study focused on the usage of the system like performance management to accelerate service delivery in Amatole District Municipality (ADM) in the Eastern Cape Province. There is limited research regarding the usage of the system like performance management to accelerate service delivery in Amatole District Municipality. Mixed research methodology was used. The sample (n=10) comprised of individual involved in performance management systems. Data was collected through the questionnaire method and both qualitative and quantitative methods were used for data analysis. The study results show that while the performance management systems are being practiced at the municipality it is not done effectively and efficiently. In addition, not all municipal employees had the necessary knowledge and expertise to implement PMS. It can also be noted that every respondent in the study agreed that performance management systems do accelerate service delivery if done efficiently. The study recommends that local government should not only focus on their plans on dealing with backlogs but also on the rapid development taking place and the performance management system framework should cater for individual performance.
- Full Text:
- Date Issued: 2019
To explore the Reconstruction Development Programme housing system in South Africa and its full potential relating to the system itself, the design, government’s role and the challenges encountered in its implementation: The Case of Buffalo City Metropolitan Municipality, Eastern Cape
- Authors: Mvunge, Nathunathi Mvunge
- Date: 2019
- Subjects: Housing -- South Africa -- Eastern Cape Human services -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: http://hdl.handle.net/10353/13782 , vital:39711
- Description: The issue of housing in South Africa presents a challenge confronting many citizens. As such, this dissertation seeks to identify the challenges faced by the Buffalo City Metropolitan Municipality in its implementation of the RDP Housing Scheme, to assess how the housing challenges in the BCMM differ from those in other municipalities, to identify the measures taken by the Buffalo City Metropolitan Municipality to address the challenges encountered in the implementation of the RDP Housing Scheme and to give possible recommendations that address the challenges encountered in the implementation of the RDP Housing Scheme in BCMM. The study makes use of qualitative research in the form of in-depth interviews, focus group discussions, observations and relevant secondary literature to collect data from the Buffalo City Metropolitan Municipality and from citizens residing in Amalinda and Scenery Park RDP houses. The findings of the study show that the majority of the occupants of RDP houses in both Amalinda and Scenery Park are not satisfied with the quality of the houses mainly in terms of their sizes and space. The government has limited resources and is not able to provide enough good quality houses to the applicant’s needs. In addition, the study reveals that there are bureaucratic (red tape) delays in the implementation of the RDP and that the government does not work together with or consult with the beneficiaries of the RDP Housing scheme sufficiently. The study was anchored in the Neo-institutional and the growth pole theory. As to recommendations, the study has recommended that the government address the still extant barriers intiated by the apartheid government, by allowing public participation in the implementation of the RDP housing scheme and ensuring that effective screening measures be used to eligible RDP housing occupants.
- Full Text:
- Date Issued: 2019
- Authors: Mvunge, Nathunathi Mvunge
- Date: 2019
- Subjects: Housing -- South Africa -- Eastern Cape Human services -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: http://hdl.handle.net/10353/13782 , vital:39711
- Description: The issue of housing in South Africa presents a challenge confronting many citizens. As such, this dissertation seeks to identify the challenges faced by the Buffalo City Metropolitan Municipality in its implementation of the RDP Housing Scheme, to assess how the housing challenges in the BCMM differ from those in other municipalities, to identify the measures taken by the Buffalo City Metropolitan Municipality to address the challenges encountered in the implementation of the RDP Housing Scheme and to give possible recommendations that address the challenges encountered in the implementation of the RDP Housing Scheme in BCMM. The study makes use of qualitative research in the form of in-depth interviews, focus group discussions, observations and relevant secondary literature to collect data from the Buffalo City Metropolitan Municipality and from citizens residing in Amalinda and Scenery Park RDP houses. The findings of the study show that the majority of the occupants of RDP houses in both Amalinda and Scenery Park are not satisfied with the quality of the houses mainly in terms of their sizes and space. The government has limited resources and is not able to provide enough good quality houses to the applicant’s needs. In addition, the study reveals that there are bureaucratic (red tape) delays in the implementation of the RDP and that the government does not work together with or consult with the beneficiaries of the RDP Housing scheme sufficiently. The study was anchored in the Neo-institutional and the growth pole theory. As to recommendations, the study has recommended that the government address the still extant barriers intiated by the apartheid government, by allowing public participation in the implementation of the RDP housing scheme and ensuring that effective screening measures be used to eligible RDP housing occupants.
- Full Text:
- Date Issued: 2019
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