Provincial support for municipal financial management in the Limpopo Province

Abstract

This study is investigating the relationship between the Limpopo Provincial Treasury (LPT) and municipalities in the Limpopo Province of South Africa. The nature of the relationship is referred to as municipal financial intergovernmental relations. Municipal financial intergovernmental relations are in the main provincial-local relations. The key actors in municipal financial relations are the provincial treasuries and municipalities. Municipal financial intergovernmental relations were and continue to be mired by controversy. Non-compliance with legislation and underperformance characterised municipal financial management. The Auditor-General South Africa (AGSA) and National Treasury (NT) decried the state of municipal financial management. This scenario was applicable to municipalities in Limpopo Province, hence the study adopted the following problem statement: Are provincial governments in South Africa fulfilling their mandate to assist municipalities to maintain sound financial management? The purpose of this study was to determine whether the LPT fulfilled its mandate to assist municipalities to maintain sound financial management. The main research objectives of the study are: ‘to explore structural functionalism as a theoretical lens for this study’ and ‘to examine the policy framework for municipal financial intergovernmental relations. This is a retrospective longitudinal study conducted in the Limpopo Province of South Africa. The LPT was selected using purposive sampling as the unit of analysis. Monitoring and support were identified as the units of observation. The data were collected from public records and journal articles. Narrative texts and tables were used to present the data. Documentary analysis was used to appraise and analyse the collected data. The main findings for this study are that the LPT was monitoring and supporting municipal financial management. In addition, the study found that evaluation existed only in name. Despite these findings, non-compliance and underperformance were incessant. This study concluded that the LPT fulfilled its mandate to assist municipalities to maintain sound financial management.