Abstract
This study mainly focused on defining and determining the appropriateness of noncorporate
governance principles for Local Government. The target, local government
organisation, which was chosen for this study, was the City of Tshwane Metropolitan
Municipal (CTMM). The principles, which were identified to be the most appropriate for
this study, were accountability, integrity and disclosure as defined by the King II Report.
These principles were separately measured and based on the underlying sub
components, which defines these principles. The appropriateness and level of
understanding of accountability was measured through the use of sub components,
which focussed on a manager’s responsibility, as well as delegations received, guided
by the code of conduct of the CTMM. Integrity was measured by fairness, respect for
others in the organisation, by showing adequate compassion and by being an honest
person. Disclosure on the other hand was measured by the status of information, which
can and should be disclosed, whistle blowing policy and protection of whistle blowers,
the openness of the CTMM towards their management and workforce and finally the
handling of fraud by management.
The method followed with this study was to approach managers and deputy managers
from the CTMM in order to obtain first hand experience regarding non-financial
corporate governance principles within the CTMM by means of a qualitative survey.
Results from the questionnaire and the subsequent empirical analysis indicate that the
CTMM do currently apply some of these principles to specific levels of satisfaction. The
viewpoint of managers and deputy managers within the CTMM reflected by the Weaver
“best combination” analysis that the appropriateness and the interaction of the sub
components are related and important in measuring non-financial corporate governance
at Local Government. These and other detailed findings are reflected in chapters four
and five for further reference. In conclusion it is important to note that the findings
indicate that non-financial corporate governance principles is indeed appropriate at local
government.
Mr. J. Bredenkamp