Improving Financial Practices in South African Local Municipalities: The Role of Internal Control Mechanisms in Promoting Good Governance

Improving Financial Practices in South African Local Municipalities: The Role of Internal Control Mechanisms in Promoting Good Governance

Prince Chukwuneme Enwereji & Moses Thabang Hlongoane

Issue: Vol.6 No.15 Article 1 pp. 4225 – 4244
DOI: https://doi.org/10.38159/ehass.20256151| Published online 30th December, 2025
© 2025 The Author(s). This is an open access article under the CCBY license (http://creativecommons.org/licenses/by/4.0/).

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ABSTRACT

In 2020, a speech by the Auditor General of South Africa emphasised the importance of implementing internal control mechanisms as safeguards against financial loss and fraud, promoting transparency, accountability, and ultimately fostering public trust in the management of funds at the local municipal level. Due to financial mismanagement in some local municipalities in South Africa, this study investigated the internal control practices of role-players in local municipalities and how they affect good governance. The research objectives explored the relevance of internal control systems, the causes of poor implementation of internal control systems, the practical effects of poor implementation of internal control systems and measures to enhance internal control systems in South African municipalities. A qualitative research approach was adopted, and document analysis was applied to find answers to the research problems. A content analysis technique was applied using the Atlas-ti software (version 23) to analyze the Consolidated General Report on Local Government Audit Outcomes (MFMA 2020–2021). This was done to uncover how municipal role-players facilitated internal control measures during the 2020–2021 fiscal year. The peer-reviewed documents were used to support and consolidate the findings from the municipal report. Findings from the study revealed that internal control measures are performed to prevent errors and irregularities, identify problems, and ensure that corrective actions are taken to facilitate good governance. The study discovered that some municipalities in South Africa do not facilitate effective internal control systems, which have invariably escalated financial misappropriations and other poor municipal financial practices. State the contribution of this study to scholarship.

Keywords: Municipal Financial Management, Clean Audit Reports, Local Municipal Management, Internal Control, Municipal Accountability.

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ABOUT AUTHOR(S)

Dr. Prince Chukwuneme Enwereji is an accomplished researcher, senior lecturer, and management professional with a PhD in Economic and Management Sciences (Business Management) and an MCom in Financial Management from North-West University, South Africa, supported by extensive qualifications in management, finance, and education. His research and professional expertise span local government performance, public financial management, financial technology, education management, strategy, entrepreneurship, and public service delivery, with a strong focus on innovative approaches to economic empowerment and institutional effectiveness in developing contexts. He has held various academic and research roles, including senior postdoctoral research fellow, writing consultant, and external examiner, and brings practical experience as a public administration specialist, financial and forensic analyst, and strategist. Beyond academia, he is the Founder and Director of PF Research & Management Consults, a black-owned firm committed to economic transformation, through which he provides research, consulting, and strategic advisory services to support organisations, entrepreneurs, and public institutions in areas such as governance reform, financial management, strategic planning, and change management.

Dr, Moses Thabang Hlongoane is a distinguished scholar and academic leader whose career reflects a strong commitment to accounting education, research excellence, and community engagement. As Executive Dean of the College of Accounting Sciences at the University of South Africa, he has provided strategic leadership that has strengthened teaching and learning, research output, and community engagement, drawing on extensive experience as a senior lecturer, module coordinator, school director, and acting executive dean. His contributions to the accounting profession include industry collaboration, curriculum innovation, faculty leadership, and professional development of future accountants, alongside active involvement in professional bodies such as SAIGA, SAICA, CIBA, and ABASA. Beyond academia, he has demonstrated exceptional academic citizenship through community initiatives, school governance support, career development programmes, and organisational leadership, earning recognition for his impact, including the CEMS Outstanding Career Development Project award. His recent appointment as Executive Dean of CAS highlights Unisa’s confidence in his leadership as the institution advances its vision of academic excellence and Africa-centred scholarship.

TO CITE ARTICLE

Enwereji , Prince Chukwuneme, and Moses Thabang Hlongoane.“Improving Financial Practices in South African Local Municipalities: The Role of Internal Control Mechanisms in Promoting Good Governance.”E-Journal of Humanities, Arts and Social Sciences 6, no. 15 (2025):4225 – 4244, https://doi.org/10.38159/ehass.20256151.