Abstract
Background: The literature on the challenges of municipal councillors to ensure financial accountability in South African municipalities is widely available. The gap is in the legislative role and capacity of South African local municipality councillors in their financial oversight leading to local economic development and sustainability of livelihoods. This article responds to this gap.
Aim: This study aims to assess the legislative roles and capacity of Ulundi municipal councillors in their financial oversight responsibilities leading to local economic development and sustainable livelihoods.
Setting: This article focuses on the Ulundi Local Municipality in northern KwaZulu-Natal, South Africa.
Methods: The study follows a qualitative research method, and primary data were collected through semi-structured interviews and secondary data through relevant reports and literature.
Results: The findings revealed a combination of challenges that Ulundi municipal council and its councillors face in their legislative role to conduct financial oversight and sustain local livelihoods. Such a combination of challenges includes the councillors’ lack of adherence to relevant regulations on the roles of councillors, a lack of relevant capacity to conduct financial oversight and a lack of willingness to act against fellow political party members employed by the local municipality.
Conclusion: The article concludes that such challenges lead to poor municipal financial oversight, poor service delivery and unsustainable local livelihoods.
Contribution: The contribution of the article is in the proposed processes that draw from Institutional Theory and Sustainable Livelihoods Framework approaches to suggest changes that improve legislative oversight and service delivery leading to sustainable local livelihoods.
Keywords: local government; accountability; financial oversight; legislation; local municipal council; sustainable livelihoods.
Introduction and background
D’Inverno, Vidoli and De Witte (2023) point out that local government is key to meeting local citizens’ needs. D’Inverno et al. (2023) assert that globally, ‘Local governments have been increasingly designated as the most suitable government level to provide better-tailored services and to address citizens’ needs’. Schoeman and Chakwizira (2023) and Shava and Mazenda (2021) corroborate while highlighting the local government challenges in South Africa. Shava and Mazenda (2021) posit that South African local municipality councillors continue to find their roles and responsibilities of financial oversight to be challenging. Gasela (2022) affirms and points to the existing trend whereby different government departments and levels of government (such as provincial and local governments) fail to receive clean audits. Gasela (2022) opined that a ‘pattern and trend also emerged over the same 10-year period in the local government sphere of the South African government’. Shava and Mazenda (2021:306) elaborate on the need for research on the role and capacity of municipal councillors concerning public financial oversight by pointing out that ‘This scourge impedes government departments capacity to render public services effectively and efficiently’. Municipal public financial oversight is the responsibility of the municipality’s local councillors. Accordingly, councillors are legislatively positioned as an oversight structure to municipal staff programmes and operations.
The need to exercise good governance obligates the municipal council to promote financial accountability in executive and administrative structures. This is supported by various legal arrangements, including specific sections in the 1996 South African Constitution, Municipal Systems Act no 32 of 2000, section 4 (8) Municipal Structures Act of 1998 and the Municipal Financial Management Act no 56 of 2003. All these pieces of legislation vest authority in the municipal councillor’s role and capacity to promote financial accountability. Van Niekerk and Sebakamotse (2020) affirm and elaborate on the significance of the role and capacity of the local municipality’s councillors to spearhead local economic development through good financial oversight. Van Niekerk and Sebakamotse (2020) argue: ‘No municipality can deliver effective services and fulfil its constitutionally mandated development role without enough financial resources’. Thus, an assessment of municipal councillors’ roles and capacity in the execution of their financial oversight responsibility to ensure financial accountability in local government is therefore vital.
This article focuses on the Ulundi Local Municipality in northern KwaZulu-Natal, South Africa. The study aims to assess the legislative roles and capacity of Ulundi municipal councillors in their financial oversight responsibilities leading to local economic development and sustainable livelihoods. Three objectives are therefore pursued in this regard: (1) to assess the legislative role of councillors within the municipal environment, (2) to assess the capacity of councillors in their role as financial oversight principals in the municipal environment and (3) to investigate challenges faced by councillors concerning municipal financial oversight and sustainable local livelihoods.
Literature review
Assessing the legislative role of councillors within the municipal environment
Schoeman and Chakwizira (2023) and Farisani (2022a) posit that councillors are key stakeholders in the local municipality’s governance system. Schoeman and Chakwizira (2023), Farisani’s (2022a) arguments highlight the legislative role of local municipality councillors in the implementation of economic policies that are crucial in local economic development and the sustainability of local livelihoods. D’Inverno et al. (2023), Shava and Mazenda (2021) affirm and tie the legislative role of councillors to effective public service delivery and the sustainability of local livelihoods. Thus, the need for local municipality councillors to exercise good governance to promote financial accountability in executive and administrative structures cannot be overemphasised. To this end, a review of relevant legislative arrangements meant to assist councillors comes to focus in this section. Such legislative arrangements include specific sections in the 1996 South African Constitution, Municipal Systems Act no 32 of 2000 and the Municipal Financial Management Act no 56 of 2003. Understanding these pieces of legislation is crucial in determining the authority vested in the municipal councillors’ role and capacity to promote financial accountability.
Section 152 (1) of the South African Constitution clearly outlines the objectives of Local Government (LG) and guides local municipality councillors on the acceptable conduct in pursuing accountability, provision of public services and promotion of economic and social development. Section 152 (2) of the Constitution states that municipalities must strive, within their financial and administrative capacities, to attain the objectives set out in Section 152 (1). These relate to sound financial management being associated with the principles of public service administration. Section 195 (1) sets out these principles, which are relevant to local municipality councillors’ role in financial oversight.
Another crucial piece in understanding the local municipality councillors’ legislative role is the Local Government Municipality Systems Act (Act 32 of 2000). That is because the Local Government Municipality Systems Act (Act 32 of 2000) provides the local municipal councillors and municipal officials with a code of conduct. Such a code of conduct is key in guiding local councillors in their organisational planning and oversight responsibilities that are crucial in local economic development and the sustainability of local livelihoods (Molepo & Maleka 2018). Section 4 (2) of the Municipal Structures Act, 1998 is equally important in understanding the local municipality councillors’ legislative role. It is equally important because it clarifies the role of the municipal council in ensuring that the financial resources of the municipality are administered in a way that promotes efficient service delivery, local economic development and therefore sustainable local livelihoods.
The Municipal Financial Management Act (MFMA) is equally important in understanding the legislative role of the municipal council and that of councillors concerning financial oversight. Chapters 7 and 8 of the Municipal Financial Management Act no 56 of 2003 are clear on the acceptable conduct of local municipal councillors concerning their financial oversight responsibilities over the relevant local municipal officials. Such oversight is vital in ensuring relevant local municipality officials account for the local municipality’s revenue, expenditure, assets use, future financial planning and resolving of financial-related queries that might arise concerning municipal finances (Gasela 2022).
Assessing the capacity of councillors in their role as oversight principals in the municipal environment
Different legislation pieces reviewed in the subsection above clearly pointed to the importance of the role of the local municipality council through its councillors to ensure proper financial oversight to sustain local livelihoods. Section 19 of the Municipal Structures Act, 1998 provides further clarity in that the local councillors as part of the local municipality council can ensure such oversight by directly holding the mayor accountable. The mayor is the executive head of the relevant local municipality’s financial officials or administrators such as the municipal manager. Schoeman and Chakwizira (2023), Farisani (2022a) posit that such responsibility is on the shoulders of the council and local councillors demand that capacitated individuals ensure efficient oversight. Farisani (2022a) further notes that local councillors are not elected based on their educational capacity or qualifications and that has a negative impact on their ability to perform other tasks. Some of these tasks include reading and understanding reports from the mayor and the municipality manager in their financial oversight responsibility. Van Niekerk and Sebakamotse (2020) affirm and add that capacitated councillors are better suited to perform their financial oversight roles.
Chirau and Blaser-Mapitsa (2020) further argue that local councillors’ capacity in their financial oversight role matters because most local municipalities in South Africa already struggle to attract skilled officials. Chirau and Blaser-Mapitsa (2020) point out that such a lack of skilled financial officers is likely to impact the quality of reports that in turn end up making their way to the municipality council. Musakuro and De Klerk (2021:1) corroborate Chirau and Blaser-Mapitsa (2020) and assert that ‘Talent management is one of the most important and key strategic issues that managers face in the modern-day business environment’. The capacitated local councillors are therefore a necessity to ensure resources are managed properly to the benefit of the citizens. Mazibuko and Fourie (2013) also argue that councillors ought to be capacitated educationally because their financial oversight work includes enacting local legislation concerning municipal rates and taxes as well as the allocation of local municipality’s budgets.
The South African Auditor-General stated in the consolidated report on the local government audit of 2018–2019 (AGSA:1) that poor financial oversight in local government is of major concern. The report points to various financial misconduct that has not been picked by the councillors in their financial oversight role and how such misdeeds impact service delivery and local economic development. Sirovha and Thornhill (2017) corroborate and add that the role of councillors to read reports and provide financial oversight is consistent with their roles as described in section 129 (1) of the Municipal Financial Management Act, 2003.
Challenges faced by councillors concerning municipal financial oversight
Rulashe and Ijeoma (2022) and Mahadea and Kaseeram (2018) provide a window into the impact of the past imbalances created by Apartheid South African policies. Imbalances that impacted the financial stability and local economic development of mostly rural local municipalities where the majority of the South African poor reside. Farisani (2022b) corroborates and highlights the role of local councillors in the local economic development and sustaining of local livelihoods to try and minimise the Apartheid policies’ impact. Mazibuko (2013) concurs and points to the Apartheid policies, such as the Natives Land ACT, of 1913, that were meant to suppress the local rural areas such as the Ulundi Local Municipality where the majority are black people. Such a historical phenomenon put pressure on the current local municipal challenges to address such imbalances that continue to impact the poor rural black people until today.
Ssekitoleko and Du Plessis (2021) affirm and point to the challenges that await all local councillors in responding to the impact of the past imbalances that continue to disadvantage the rural black people in most local municipalities in the South. Farisani (2022a) posits that the past imbalances have a continuing direct impact on the rural local councillors themselves. Such impact is in the capacity to perform roles assigned to them because of inherent poor educational qualifications, that is, most such councillors did not study enough to be able to conduct tasks such as municipal financial oversight or reading of crucial reports. Farisani (2022a)’s view is also shared by Van Niekerk and Sebakamotse (2020) who elaborated on the state of municipal councils in South Africa.
As already alluded to above, Section 19 of the Municipal Structures Act, 1998 points out that the local councillors as part of the local municipality council have a duty and can conduct financial oversight by directly holding the mayor accountable. The mayor is the executive head of the relevant local municipality’s financial officials or administrators such as the municipal manager. However, section 11 of schedule 1 of the Municipal Structures Act 2000 asserts that local municipality councillors are not to directly interfere with the management or administration of the local municipality unless mandated by the council. While the MSA Act 2000 was meant to provide the much-needed independence for the municipal managers and administrators to ensure credible services to the citizens, the act does limit local councillors in practice to directly offer their expertise or knowledge even if they are better qualified than the local municipal officials.
Mazibuko and Fourie (2017) posit that the Municipal Financial Management Act of 2003 admonishes the local municipal council and therefore local councillors to conduct financial oversight in a way that puts citizens’ livelihoods and local economic development as a priority. Nevertheless, the act also limits the councillor’s powers to the mayor’s door and no further. The mayor with the municipal manager to ensure efficient financial administration by the municipal financial officials. Municipal Financial Management Act (MFMA) no 56 of 2003 recognises the municipal council as the highest authority in the municipality and strengthens the powers of the council by vesting it with significant powers of approval and oversight. A council delegates its executive authority to the executive mayor of the committee but does not delegate its legislative powers and retains the powers to approve the policy, and budgets and exercise oversight over the mayor in the implementation of policy, budgets and by-laws.
Nevertheless, Schoeman and Chakwizira (2023) and Van Niekerk and Sebakamotse (2020) elaborate on the importance of the limits associated with MSA and MFMA as elaborated above concerning the interference of the local council. Schoeman and Chakwizira (2023) highlight the legislation’s implementation challenges while Van Niekerk and Sebakamotse (2020) point to the findings by the Auditor General of South Africa that highlight the danger of political interference in local municipality’s financial management. Such interference has been found to favour certain individuals while disadvantaging most citizens and the services they ought to receive from their local municipality. The Sustainable Livelihood Framework (SLF) below assists in understanding the resources needed to ensure local councillors deliver services and provide sustainable local livelihoods as the constitution and relevant local government legislation intended.
Sustainable Livelihood Framework’s approach to managing resources
Sustainable Livelihoods Framework’s approach would assist in understanding and responding to challenges that Ulundi Local Municipality council members face in discharging their duties as per the above-mentioned legislation. Such understanding is drawn from the interaction between livelihood asset base and transforming structures and processes in assisting local councillors to confront the challenges they face in serving their constituent in line with the legislation (see Figure 1). Smyth and Vanclay (2017) posit that the asset base allows for such understanding because of the clarity that it provides on how assets or resources such as human and financial resources may influence or be influenced by structures (such as the local municipal council itself or its various committees) or policies (see Figure 1). Influence or be influenced by structures or policies in providing service delivery that leads to sustainable livelihoods in the municipality. However, to fully understand the gap between policies or laws and their implementation by the local councillors requires further review. Such review will be undertaken drawing from the institutional theory.
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FIGURE 1: The sustainable livelihoods framework. |
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Institutional Theory’s approach to policy implementation
The institutional theory consists of three elements, namely, regulative, normative and cultural cognitive (Scott 2008). For the sake of this article in line with the research objectives, only regulative and cultural cognitive elements are considered. The regulative element will assist in understanding the legislative system, councillors’ obligations and perspectives concerning the legislation governing them and their behavioural reasoning towards the above-mentioned laws (see Table 1). The cultural cognitive element will assist in understanding how the councillors value the legislation, their assumptions and how they behave as they conduct their financial oversight duties to ensure efficient service delivery and sustainability of local livelihoods.
| TABLE 1: Comparison between regulative, normative and cultural-cognitive elements of Institutional Theory. |
Research design and methodology
Research design
Research design alludes to the master plan or logic of a research study that sheds light on the way a study is conducted. Cooper and Schindler (2003) define research design as an overall technique of a research study, from the theoretical groundwork to collecting and analysing the data. This study utilised the interpretive paradigm. Creswell (2013) asserts that the interpretive paradigm is concerned with intending to understand the individual’s understanding of circumstances; in this case, the researcher attempts to study the municipal councillors’ understanding of their role and capacity in the execution of oversight in local government through monitoring their responses to interview questions.
Research methodology
Data collection and analysis
The study drew multiple perspectives from 47 Ulundi Local Municipal councillors who were interviewed (face-to-face) as well as from various literature that was analysed. Thus, the researcher used the qualitative method for this study. The researcher chose purposive sampling within the scope of non-probability sampling. The respondents in this study were intentionally selected to respond to specific questions. This approach is further amplified by Baker et al. (2012) as a method intended to reflect the characteristics of a chosen population. Edmonds and Kennedy (2016:26) corroborate and assert that ‘the researcher selects individuals to participate based on a specific need or purpose, based on the research objective, design and targeted population’; they also added that ‘this is most commonly used for qualitative methods’.
The researcher utilises the qualitative data analysis process that is proposed by Maree (2007). Maree (2007) proposes that the probing of qualitative research notes commences in the field, at the time of interviewing and observation or even both. At the same time, the researcher identifies issues and concepts that are likely to assist in the comprehension of the situation. Reading the notes and transcripts is a critical step in the analytical process. The interviews were transcribed (the researcher recorded interviews using an audio recording device) into words and produced a document attached to each respondent. This was followed by a process of colour coding the text of each interview by way of establishing common aspects and key issues as they emerged. In the process of seeking triangulation of the data, on a large Board, the same colour-coded text was grouped. This enabled the researcher to identify the responses that categorically fit the themes obtained. In the final analysis, the researcher attempted to thoroughly understand and explain the themes.
Reliability and validity
Triangulation was used in this study to ensure reliability and validity, that is, the findings from interviews in this study were checked against the findings by other scholars found as part of the literature review. The approach to using the findings of one tool against the other to ensure reliability and validity is consistent with Sekaran and Bougie (2009). Lincoln and Guba (1985) affirm and further highlight the strong and significant relationship between reliability and dependability in that a protest of credibility in research confirms, dependability. In addressing the question of dependability more directly, it was vital for the researcher to be clear and comprehensive in reporting the procedure as well as the discoveries of the study. This will, to a great extent, enable other researchers to duplicate the study if need be in different situations.
Findings and analysis
This section presents and analyses the findings in line with the research aim, which is to assess the roles and capacity of Ulundi municipal councillors in their financial oversight responsibilities leading to local economic development and sustainable livelihoods. Challenges that councillors face in their roles are also presented and analysed in light of the relevant legislation reviewed above. Such relevant legislative arrangements include specific sections in the 1996 South African Constitution, Municipal Systems Act no 32 of 2000 and the Municipal Financial Management Act no 56 of 2003.
South African Constitution: Findings and analysis of the role, capacity and challenges of Ulundi councillors
For this article and in line with the aim of this study, the findings and analysis presented below focus on the two relevant sections of the 1996 South African Constitution. These are Section 152 (1) and Section 152 (2) of the South African Constitution (see Table 2 for the summary). These two sections enjoin the local municipality councillors through the council to pursue accountability, provision of public services and promotion of economic and social development within the local municipality. The findings reveal that while the two sections of the constitution aspire to address the past imbalances, such imbalances (such as the provision of public services and the promotion of economic and social development) still affect the current financial stability of rural municipalities. The current financial stability of rural municipalities is affected because of assets or infrastructure still needed for the Ulundi Local Municipality to do what the constitution intended concerning the past imbalances. The role of the local councillors becomes even more challenging because they need to understand reports that come to the council. The reports that come to the council detail how the available local municipality funds have been used and need to be used to achieve the provision of public services and the promotion of economic and social development.
The findings reveal that most councillors do not fully understand their responsibilities as per the legislation because of poor educational qualifications to read and understand local municipality reports. Such findings are clearer in the response given by the local councillor interviewed. The councillor (respondent A) responded to the question enquiring about their capacity to understand the municipal reports presented to the local municipal council for financial oversight purposes. Respondent A stated:
‘I have the capacity as I can read and understand local government legislation, however, what has proven to be the real challenge is understanding and interpretation of legislation and reports which are served before council.’ (P1, Male, Ulundi Local Municipality, Municipality Local Councillor)
The statement points to someone who is not only unable to understand the reports he is supposed to exercise financial oversight but also someone who is in denial about his ability to perform his duties as per the two sections of the constitution mentioned above. Respondent C is equally clueless about the capacity and roles expected from her as a councillor as per the constitution. Respondent C stated, ‘… there is not much role we play other than mainly approving of policies and budget’. (P5, Female, Ulundi Local Municipality, Municipality Local Councillor)
Local Government Acts: Findings and analysis of the role, capacity and challenges of Ulundi councillors
For this article and in line with the aim of this study, the findings and analysis presented below focus on the two relevant sections of the Local Government Acts (see Table 2 for the summary). Two relevant sections of Municipal legislation are the Local Government Municipality Systems Act (Act 32 of 2000) and Section 4 (2) of the Municipal Structures Act, of 1998. These two sections enjoin the local municipality councillors through the council to ensure that the financial resources of the municipality are administered in a way that promotes efficient service delivery and meets the needs of the local community.
The findings reveal that the induction process to prepare new councillors for the tasks as per the two sections of the local municipality mentioned above is not enough to prepare the local councillors. Not enough to prepare the local councillors for the tasks of financial oversight to promote local economic development with the view to ensure efficient service delivery and meet the needs of the local community. The findings are consistent with Respondent B’s assertion that ‘the duration of the training provided (induction), which is a once-off in the 5-year term is not sufficient’. Respondent B corroborates Respondent A’s statements and explains the implication by saying that ‘what has proven to be the real challenge is understanding and interpretation of legislation and reports which are served before council’ (P3, Male, Ulundi Local Municipality, Municipality Local Councillor).
The findings also reveal that political parties’ needs are put ahead of service delivery and local community needs. Putting political parties’ needs ahead of service delivery and local community needs not only goes against the Local Government Municipality Systems Act (Act 32 of 2000) and Section 4 (2) of the Municipal Structures Act, 1998 but also undermines local municipality’s financial stability and local economic development. Respondent D’s response during interviews elaborates on the above-mentioned finding. Respondent D stated, ‘reports are accepted as they are without any deliberations as this may be seen as questioning our comrades in the presence of opposition parties’ (P6, Male, Ulundi Local Municipality, Municipality Local Councillor). Respondent D also confirms the above finding by respondent B who argues that ‘when we are appointed as councillors, we need to protect the image of the party that deployed us to the council’.
Municipal Financial Management Act: Findings and analysis of the role, capacity and challenges of Ulundi councillors
For this article and in line with the aim of this study, the findings and analysis presented below focus on Chapters 7 and 8 of the Municipal Financial Management Act no 56 of 2003 (see Table 2 for the summary). When those chapters of the MFMA are read together, it becomes clearer that the role of the local councillors is to ensure relevant local municipality officials account for the local municipality’s revenue, expenditure, assets use, future financial planning and resolving of financial-related queries that might arise concerning municipal finances. However, the findings show that the councillors struggle with their roles as Chapters 7 and 8 of the Municipal Financial Management Act no 56 of 2003 intended. That is because Ulundi local councillors lack the basic educational qualities to do financial oversight that is to read and understand reports on the municipality’s revenue, expenditure, assets use and future financial planning to allow efficient financial oversight. The interviewed respondents concurred that the widespread inability of councillors to interpret legislation, technical reports and financial statements gravely debilitates their oversight function. This is deeply rooted in low literacy levels, which stem from the fact that councillors are not elected based on their skills and qualifications. The interviews established that, for most councillors, the level of education obtained was low and only a few possessed matric certificates.
This is supported by respondent B, who mentioned that most councillors were not well educated and never passed matric. Moreover, respondent B raises another concerning argument, in the respondent’s own words:
‘[It] makes it very hard … even if the municipality arranges training in trying to capacitate the councillors and understand the reports which are technical in nature and are presented by the municipal officials who are well trained in that field; further to that, the duration of the training provided [induction], which is a once-off in the five-year term is not sufficient.’
Discussion of key findings
The discussion of key findings flows from the previous section and discusses all relevant legislation and their implications on the role and capacity of Ulundi local municipality councillors during their financial oversight role. Their financial oversight is crucial for the efficient management of financial resources, local economic development and ultimately the sustainability of local livelihoods. Such discussion on the efficient management of financial resources is discussed with the consideration of relevant legislation, SLF and Institutional Theory’s guide. Section 152 (1) and Section 152 (2) of the South African Constitution are the first legislation to be discussed.
South African Constitution: The role, capacity and challenges of Ulundi councillors
The focus of this section is on the two relevant sections of the 1996 South African Constitution. These are Section 152 (1) and Section 152 (2) of the 1996 South African Constitution. These two sections enjoin the local municipality councillors through the council to pursue accountability, provision of public services and promotion of economic and social development within the local municipality. The findings reveal that while the two sections of the constitution aspire to address the past imbalances, such imbalances (such as the provision of public infrastructure, and the promotion of economic and social development) still affect the current financial stability of rural municipalities, service delivery and ultimately local livelihoods. The reason is that the current financial stability of rural municipalities is affected because of assets or infrastructure still needing to be built. Still needed to be built for the Ulundi Local Municipality to do what the constitution intended concerning the past imbalances. The finding and analysis provided are consistent with the SLF’s approach (see Figure 1) concerning the laws (by the relevant structures, in this case, the past government) influencing the current local livelihood asset base (i.e. the physical resources and the financial resources), which in turn impact the local council’s ability to contribute to sustainable local livelihoods through oversight. The finding is also consistent with D’Inverno et al. (2023) (see introduction) and Van Niekerk and Sebakamotse’s (2020) assertions. Van Niekerk and Sebakamotse (2020) assert that ‘No municipality can deliver effective services and fulfil its constitutionally mandated development role without enough financial resources’. The past imbalances make the financial oversight role of local councillors more challenging.
The role of the local councillors becomes even more challenging because they need to understand the financial reports that come to the council. The reports that come to the council detail how the available local municipality funds have been used and need to be used to pursue accountability, the provision of public services and/or infrastructure and the promotion of economic and social development. Nevertheless, Institutional Theory’s approach provides a guide that local councillors may use as members of the local council who are assigned the above-mentioned duties by the two sections of the constitution. Institutional Theory’s approach points out that while the laws are binding and may force the targeted population not to give any option as they ‘have to’ and cultural cognitive element provide hope. Hope that it points out that councillors even though they cannot change what happened in the past can still make a positive impact in fulfilling the two sections of the constitution if they ‘want to’ (see Table 1). In practice, that meant what is needed is for the local councillors to want change enough to work towards it by overcoming challenges that they can within the financial resources they currently have (Palthe 2014; Scott 2008).
The main challenge to the Ulundi local councillors with such an approach of working towards a financial stability solution is revealed in the findings. The findings reveal that most councillors do not fully understand their responsibilities as per the legislation because of poor educational qualifications to read and understand local municipality reports. Again, the findings are consistent with the SLF approach in that the Ulundi councillors’ capacity (human resources) has implications for the local council (as the transforming structure) to provide services leading to sustainable local livelihoods. Sustainable Livelihood Framework’s approach in addressing such a capacity (human resource) challenge will suggest that solution to the challenge has to come from the transforming structure (i.e. municipal council or another institution that would prepare and/or teach the councillors) that will assist in capacitating councillors to understand and perform their oversight duties.
Local Government Acts: The role, capacity and challenges of Ulundi councillors
Two relevant sections of the Municipal legislation that are the Local Government Municipality Systems Act (Act 32 of 2000) and Section 4 (2) of the Municipal Structures Act, 1998 are discussed in this subsection. Schoeman and Chakwizira (2023) assert that these two sections enjoin the local municipality councillors through the council to ensure the financial resources of the municipality are administered in a way that promotes efficient service delivery and meets the needs of the local community.
Palthe (2014) alluded to Institutional Theory’s cultural cognitive element perspective when pointing out that to promote efficient service delivery and meet the needs of the local community, an effort must be made to understand the views and preferences of the community themselves. The community’s views and preferences are understood when their values, beliefs and assumptions are considered. Nevertheless, the findings reveal that political parties’ needs are put ahead of service delivery and local community needs. The councillors interviewed pointed to their informal rules or conduct of putting the needs of their parties above their obligations to conduct financial oversight to the executive. Palthe (2014) posits that such a dispensation whereby the obligation to rules is put ahead of the needs of people defeats the purpose of development. When the Ulundi councillors feel obligated to protect their political comrades who may be well abusing their positions as local municipality’s finances, they are blindly following a regulative element without considering the cultural cognitive element of their failure as oversight guardians. Schoeman and Chakwizira (2023) and Van Niekerk and Sebakamotse (2020) affirm and point out that efficient financial oversight of existing financial resources of the local municipality is closely tied to the local municipality’s success in meeting the needs of the local community.
Putting political parties’ needs ahead of service delivery and local community needs not only goes against the Local Government Municipality Systems Act (Act 32 of 2000) and Section 4 (2) of the Municipal Structures Act, 1998 but also undermines local municipality’s goal to sustain local livelihoods. A close examination of the SLF assists in understanding the implication of the Ulundi councillors’ decision to put their party above the needs (needs of sustainable livelihoods) of the community. Sustainable Livelihood Framework alludes to the influence that institutions may use social resources (politically in this case) to influence the transforming structure (local municipality council in this case) to either promote or hinder the achievement of sustainable livelihoods (see Figure 1). The findings point to the decisions of the local councillors to be hindering the executive’s accountability simply because they belong to the same party and therefore hindering their role as those elected to sustain people’s livelihoods. The findings are consistent with Shava and Mazenda’s (2021) assertions that tie the legislative role of councillors to effective public service delivery and the sustainability of local livelihoods.
Municipal Financial Management Act: Role, capacity and challenges of Ulundi councillors
The focus of this subsection is on Chapters 7 and 8 of the Municipal Financial Management Act no 56 of 2003. When those chapters of the MFMA are read together, it becomes clearer that the role of the local councillors is to ensure relevant local municipality officials account for the local municipality’s revenue, expenditure, assets use, future financial planning and resolving of financial-related queries that might arise concerning municipal finances. However, the findings show that the councillors struggle with their roles as Chapters 7 and 8 of the Municipal Financial Management Act no 56 of 2003 intended. That is because Ulundi local councillors lack the basic educational qualities to do financial oversight, that is, to read and understand reports on the municipality’s revenue, expenditure, assets use and future financial planning to allow efficient financial oversight.
Van Niekerk and Taaibosch (2017) explain that councillors need to possess basic numeracy and literacy skills to comprehend municipal administrators’ submissions. Thus, Ulundi councillors’ lack of basic educational qualities to do financial oversight does impact negatively on Ulundi’s council to deliver as per the MFMA no 56 of 2003. The findings are consistent with that of Chirau and Blaser-Mapitsa (2020). Chirau and Blaser-Mapitsa (2020) explain that local councillors’ capacity in their financial oversight role matters because most local municipalities in South Africa already struggle to attract skilled officials. Chirau and Blaser-Mapitsa (2020) point out that such a lack of skilled financial officers is likely to impact the quality of reports that in turn end up making their way to the municipality council. Mazibuko and Fourie (2017) affirm and posit that the Municipal Financial Management Act of 2003 admonishes the local municipal council and therefore local councillors to conduct financial oversight in a way that puts citizens’ livelihoods and local economic development as a priority.
Implications and suggestions concerning Ulundi councillors’ incapacity and lack of adherence to legislation
The findings also point out that the negative impact of Ulundi councillors’ lack of basic educational qualifications to do financial oversight has its origin in past imbalances. The findings are consistent with those of Rulashe and Ijeoma (2022) and Farisani (2022a). Farisani (2022a) further notes that local councillors are not elected based on their educational capacity or qualifications and that has a negative impact on their ability to perform other tasks. Tasks associated with their financial oversight role to avoid financial irregularities such as fruitless and wasteful expenditure by the local municipality’s executive branch (Gasela 2022).
Therefore, a solution that is recommended for Ulundi local municipality councillors’ lack of capacity to fulfil their roles has to go beyond individual empowerment and include local municipality citizens’ needs as per the regulations already deliberated upon above. This is where both Institutional Theory and SLF’s approach come in to guide the implementers of such a change. The asset base within the sustainable Livelihoods Framework gives insight into the resources (e.g. financial and human resources) needed to train the councillors so that they become agents of change in the council (transforming institution). Agents of change that not only can read and interpret the financial reports from the municipal executive but agents that understand that putting their citizens first as the various legislation empowers them to will lead to excellent oversight, service delivery and sustainable local livelihoods. Such a stance also assists with the long-term reputation (social resources) of the party as the party that puts citizens first. On the other hand, the Institutional Theory assists in the actual transformation process by guiding the process that should balance the obligation of the councillors to the legislation with the needs of the people in their own eyes. The cultural cognitive element informs us that the citizens may only appreciate any transformation if their values, beliefs and assumptions are recognised throughout the process. Thus, the capacity challenges of the municipal councillors should not be addressed in isolation without giving a voice to the citizens who are themselves impacted (because of poor oversight leading to poor service delivery and unsustainable local livelihoods) by the educational past imbalances. Such an approach is vital because the councillors are elected by the local citizens and therefore solutions need to be inclusive (to include all relevant local institutions) to avoid repetition in the next municipal council (South African local municipal councillors are elected every 5 years). Farisani (2022a) affirms and posits that while councillors are key stakeholders in the local municipality’s governance system, citizens are also key stakeholders and should not be left outside major local municipality decisions.
Conclusions and recommendations
This study aimed to assess the legislative roles and capacity of Ulundi municipal councillors in their financial oversight responsibilities leading to local economic development and sustainable livelihoods. These three objectives were pursued in line with the aim: (1) To assess the legislative role of councillors within the municipal environment; (2) to assess the capacity of councillors in their legislative role as financial oversight principals in the municipal environment and (3) to investigate challenges faced by councillors concerning municipal financial oversight and sustainable local livelihoods.
The findings revealed a combination of challenges that Ulundi municipal council and its councillors face in their role to conduct financial oversight and sustain local livelihoods. Such combination of challenges includes the councillors’ lack of adherence to relevant regulations on the roles of councillors, a lack of relevant capacity to conduct financial oversight and a lack of willingness to act against their political parties deployed to the executive branch of the local municipality to advance accountability and financial oversight responsibility. The article concludes that such challenges lead to poor municipal financial oversight, poor service delivery and unsustainable local livelihoods.
Changes to existing councillor induction processes are proposed to address the councillors’ capacity challenges which is the root problem of all challenges (i.e. poor legislative oversight leading to poor service delivery and unsustainable livelihoods) described in this article. Further recommendations in line with Institutional Theory and SLF are proposed concerning the involvement of the local citizens to ensure a proactive approach. A proactive approach would ensure the local community’s capacity challenges are addressed because councillors are elected from the local community every 5 years. Future studies should investigate different inclusive proactive approaches that address Ulundi local municipality’s capacity challenges considering the past imbalances that impacted all citizens and not just councillors. Different proactive approaches using the latest communication technologies and local structures/institutional processes.
Acknowledgements
This article is partially based on the author’s thesis of the degree of Master of Commerce in Leadership Studies at the University of Kwazulu-Natal, South Africa, with supervisor Prof. Pfano Mashau, received March 2021, not yet available on the internet or university website.
Competing interests
The authors declare that they have no financial or personal relationships that may have influenced them inappropriately in writing this article.
Authors’ contributions
All authors contributed equally to this work.
Ethical considerations
All ethical considerations in line with the University of KwaZulu-Natal (protocol reference number: HSSREC/00000187/2019) were followed. Participants signed a consent form and participated voluntarily. The anonymity of the respondents was protected when writing this article and the participants were assured as such beforehand.
Funding information
This research received no specific grant from any funding agency in the public, commercial or not-for-profit sectors.
Data availability
The data that support the findings of this study are available upon reasonable request.
Disclaimer
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any affiliated agency of the authors.
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