Assess the effectiveness of financial management in a metropolitan municipality to meet the infrastructure service delivery requirements: a case study of the eThekwini Municipality.

Abstract

The purpose of this study was to assess the effectiveness of financial management in a metropolitan municipality to meet the infrastructure service delivery requirements. This was a case study focused on the eThekwini Municipality. Since the dawn of democracy, local government institutions, in particular municipalities have been in the spotlight for ensuring that they are financially healthy, conduct service delivery for the South African community and are sustainable overall. In recent times, prudent financial management has been the subject of discussion mostly for local government due to the poor financial performance in Municipalities. The study deliberates on the financial management in general and then focuses on assessing the effectiveness of the financial management practices at eThekwini Municipality in order to achieve service delivery. This study followed a qualitative design methodology. A non-probability sampling technique was adopted since this particular study was a case study of the eThekwini Municipality. Purposive sampling was utilised in order to emphasise the particular characteristics of the research participants, which was targeted at ascertaining information about their financial management experience within the eThekwini Municipality. The research participants, which were at management level, were selected from the eThekwini Municipality Finance Cluster. The data collection instrument was semi-structured interviews, which were conducted with the participants on a one on one basis. The key findings of the study demonstrated that the financial management does exist, supported by the practices in the form of legislative frameworks and guidelines as well as internal policies. Financial management is effective, evidenced by the service delivery that has been achieved at the eThekwini Municipality. However, there are factors which affect the completeness of the effectiveness of the financial management. These factors were identified as key themes in the study. The factors which impact effectiveness were the lack of complete implementation of financial management practices throughout the municipality as an organisation. The study also found that there are varying degrees of consequent management and that there is some political influence in the municipal administration. The manner in which the eThekwini Municipality utilises its financial resources does not necessarily yield best value for money. There is also a need for the improvement of accountability, adequacy of skills, planning as well as the manner in which financial management is conducted in internal business units. Recommendations made in the study include decisive action on discipline and consequent management, ensuring that the financial management practices are implemented and that all financial resources are utilsed adequately in order to achieve best value for money.