In the January to March 2010 edition of the Directorship, a publication of the Southern African Chapter of the Institute of Directors, Professor De Villiers writes, ‘Corporate governance in a municipality is the system that maintains the balance of rights, relationships, roles, and responsibilities of management, employees, and councillors as well as residents in the direction, conduct, conformance, and control of the sustainable performance of the municipality with honesty and integrity in the long-term interests of all the stakeholders involved.’ This is based on seven key principles as explained in this newsletter.
The first principle is discipline. This refers to municipal managers adhering to basic financial disciplines such as Generally Recognised AccountingPractice (GRAP) and the Municipal Finance Management Act of 2003. These disciplines include regular measurement and assessment of actual performance against realistically budgeted figures.
The second principle is transparency and communication. Transparency allows for regular and open communication with stakeholders and feedback on issues of importance to the community. Information should never be withheld or hidden.
The third principle is independence and integrity. This means councillors should avoid conflicts of interest which occur when nepotism and other corrupt practices occur in tender and hiring processes.
The fourth is accountability. Being accountable means that a councillor’s performance is measured and assessed, and if his or her performance is poor, relevant disciplinary action should be taken.
The fifth is responsibility. Councillors should know what their responsibilities are, and should be responsible for the municipality’s performance.
The sixth principle is fairness and equity. Decisions by council should not be based on political considerations or individual gains that ignore all other parties. Nor should they ignore the interests of communities such as when money meant for housing is misused by the council.
The seventh is social responsibility and service delivery. Councillors should realise that the ultimate purpose of their positions is to ensure that the needs of communities are realised and that future generations can benefit from sustainable development.
The large number of community protests suggests that, in general, councillors do not adhere to these seven principles.
One peculiar element of community protests is that communities feel that councillors are detached from the people. Councillors are supposed to be the community representatives who ensure that the needs of the people they serve are met. Getting this right is one of the most important in requirements for getting local government back on track.
- Nthamaga Kgafela