An investigation into the effectiveness of low and medium scale municipalities in KwaZulu-Natal

Abstract

The purpose of this study is to investigate the impact of financial management, governance and service delivery levels on the effectiveness of municipalities in KwaZulu-Natal (KZN) for the financial Year, July 2008 to June 2009. The study is descriptive in nature, using a quantitative technique of surveys via questionnaires to collect data from chief financial officers (CFOs) from low and medium capacity municipalities in KZN. Regarding the level of financial management, corporate governance and service delivery and the impact on effectiveness of municipalities, the results indicate there are areas of low and high levels of financial management, corporate governance and service delivery in the municipalities. There are some areas in which the municipalities are effective and other areas that need attention. This implies that there is not a 100% state of efficiency with respect to policies and procedures. The difficulty in carrying out research of this scope to investigate the impact of financial management, governance and service delivery levels on the effectiveness of municipalities is that it cannot be measured with absolute certainty. In addition, municipalities may be influenced by political powers and this is also difficult, perhaps impossible, to measure. The study is an important contribution to developing what should be done by municipalities in KZN to be effective i.e. in developing a framework for success in terms of financial management, governance and service delivery.