Municipal Performance and the Utilisation of the King IV Governance Report in South African Municipalities

Abstract

Since 1994, South Africa has made progress in consolidating its democracy. However, in post-apartheid constitutional democracy, there has been growing concern about the government’s incapacity to render public services to its constituencies. In 2002, the King II report on corporate governance in South Africa was issued with the intention of “promoting the highest standards of corporate governance in South Africa.” The characteristics of corporate governance in the report included transparency, discipline, accountability, independence, fairness, responsibility, and social responsibility while the King IV report was underpinned by 17 principles. Based on these King codes and concerns, the study intends to examine whether the King IV report governance outcomes of 2016 can be used for the benefit of South African municipalities. To realise this objective, the study employed a qualitative research approach in the form of document reviews. Theoretically, the study is underpinned by the elements of the King IV report. The reason for adopting the King IV report is because it is the first code that is outcomes-based and allows the municipalities to see benefits if implemented accurately. The study reveals that there is persistent poor service delivery caused by unethical practices and poor governance in South African municipalities. The study proposes that South African municipalities should embrace the corporate governance principles outlined in the King IV report to mitigate risks such as corruption through the implementation of effective control measures, reduce political interference by ensuring the presence of balanced check mechanisms, and uphold legitimacy by adhering to government policies and laws.