n IMFO : Official Journal of the Institute of Municipal Finance Officers - The importance of institutional governance for municipal service delivery

Volume 15, Issue 2
  • ISSN : 1607-520X



Since the release of the King Report on Governance for South Africa in 2009, together with the King Code of Governance Principles, it is not clear whether much have been achieved by municipalities in applying those principles of King III. As far as the King Code of 2009 is concerned, it applies to all entities in the public or non-profit sectors however it must be noted that the Council must adopt the King code for it to be implemented. In principle compliance with the provisions of the Municipal Finance Management Act (MFMA) 56 of 2003 and some of the provisions of the Municipal Structures Act 117 of 1998 and Municipal Systems Act 32 of 2000 should have established many of the governance practices in municipalities and the challenge is now to assess what changes are needed to instil a governance culture in this sector. Since municipalities are not private sector or corporate entities the term "institutional governance" rather than "corporate governance" will be used.

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