Local government financing and development : a case study of KwaDukuza Municipality.

Abstract

This study focuses on Local Government restructuring with particular reference to KwaDukuza Municipality. The objectives of the study are firstly, to investigate the challenges facing local government with particular emphasis on local government financing, establishes key factors and challenges facing local government financial management, and lastly, provide a recommended course of direction for effective financial reform, methods of financial restructuring and business re-engineering within the broader context of the South African local government system. The research, design and methodology used in the study involves both qualitative and quantitative data analysis. An extensive range of literature was also consulted during the study. Questionnaires and interviews were conducted with staff and councillors of KwaDukuza Municipality. The findings exemplified in the study of KwaDukuza Municipality are a reflection of the broader set of challenges experienced by most municipalities across the country. Examples cited include debt management, expenditure control, budget reform and restructuring, asset management, financial reporting, procurement, and internal control. The challenges are viewed as pertinent aspects irrespective of the size of the municipality. The recommendations brought forward by the study involve a range of issues including capacity building, staff training and development, institutional capacity, community participation, performance management, monitoring and control, rather the budget as an instrument of empowerment and development.