BRIDGING THE ACCOUNTABILITY GAP: ALIGNING EVALUATION AND AUDITING TO IMPROVE MUNICIPAL PERFORMANCE IN SOUTH AFRICA

Abstract

Objective: This paper examines the persistent inefficiencies in South African municipalities, focusing on financial management, procurement, and service delivery. Despite numerous recommendations from key oversight bodies such as AGSA, PSC, and DPME, these inefficiencies continue to persist. The primary objective of this study is to propose a Unified Oversight Framework (UOF) that integrates evaluation and auditing functions at the municipal level, which can enhance performance and accountability in local governance.   Theoretical Framework: The study is grounded in three key theoretical frameworks: New Public Management (NPM), which emphasizes efficiency and accountability in public administration; Principal-Agent Theory, which examines the relationship between municipalities (agents) and oversight bodies (principals), and Public Value Theory, which focuses on creating value for the public through transparent, accountable, and effective public service delivery.   Method: This research employs a qualitative case study approach, analyzing publicly available reports from key oversight bodies such as AGSA and PSC spanning from 2010 to 2024. Document analysis is used to identify recurring themes, inefficiencies, and recommendations that are not being effectively implemented at the municipal level. The study includes a comparative analysis to identify how these recommendations align or conflict with each other across different years and municipalities.   Results and Discussion: The analysis reveals persistent inefficiencies in municipalities, particularly in financial oversight, procurement processes, and infrastructure management. The findings highlight the lack of a coordinated approach between auditing and evaluation functions. While both AGSA and PSC offer valuable recommendations, their fragmented implementation undermines the effectiveness of the oversight process. The study demonstrates that a coordinated framework integrating evaluation and auditing can improve accountability, provide clearer guidance to municipalities, and enhance service delivery. The Unified Oversight Framework (UOF) is proposed to harmonize audit and evaluation functions, thereby improving governance and fostering long-term improvements in municipal performance.   Research Implications: This research provides insights into the benefits of integrated oversight and contributes to both theoretical debates and practical policy development in public governance. The findings suggest potential legislative reforms and capacity-building initiatives to support the implementation of the framework.   Originality/Value: This paper presents an original approach to municipal oversight by integrating traditionally separate auditing and evaluation functions. It contributes significantly to the academic literature and offers a viable path for improving local governance in South Africa through coordinated oversight mechanisms.