The Malady of Perpetual Municipal-finance Mismanagement: Designing a Leadership Framework as a Panacea

Abstract

The post-1994 new democratic government had an obligation to address the social injustices that the apartheid government enacted. These injustices were to be addressed by municipalities in combination with the national and provincial government. Municipalities in South Africa are to provide critical services to the citizens. Apart from political turmoil and instability in South African municipalities, research suggests that administrators lack knowledge of financial management. This has negatively affected how financial resources are managed, thus affecting service delivery. It has resulted in some municipalities being placed under administration by the provincial governments. Thus, this study aimed to develop a conceptual framework for effectively managing ever-eroding municipal finances in South Africa. This study adopted a qualitative research approach by looking into the key factors affecting leadership and financial management in municipalities to develop a leadership framework. This study contributed to a solid understanding of the need for change in the municipality's existing financial management activities and long-term viability. Furthermore, once the conceptual structure is implemented appropriately, it can assist South African municipalities and African countries in managing their finances effectively and ultimately improve their service delivery.