Assessing the effectiveness of oversight and accountability on municipal finance management : a case of Dr A.B. Xuma Local Municipality.

Abstract

Municipalities in South Africa have been a subject of criticism, particularly for the widespread reports of maladministration and poor financial management, which in turn severely affect service delivery. Part of the challenges faced by municipalities can be attributed to a lack of effective oversight and accountability. In addition to the financial management challenges faced by municipalities, the municipal council structures, which are by law entrusted with oversight responsibilities, are also struggling to carry out their duties effectively. The primary objective of this study was to assess the effectiveness of oversight and accountability at the DR A.B. Xuma Local Municipality. This study utilised a mixed-methods approach. For quantitative data collection, a census approach was employed, targeting the entire population of 57 councillors and managers in aggregate. A purposive sampling methodology was utilised to select only a few councillors and officials. The quantitative findings revealed that oversight and accountability are effective in this municipality. However, there are areas needing improvement, particularly the need to enhance the technical understanding of financial management among the oversight committees. The qualitative findings agreed to some extent with the outcomes of the quantitative approach, but expressed strong criticism regarding the lack of capacity in the oversight committees. Both components of the study also agreed that oversight committees face challenges, in varying degrees, and that interventions are urgently needed to improve oversight and accountability. Interventions proposed range from training and development programmes to the need to assist councillors in obtaining some form of academic qualifications to improve their financial literacy.