Investigating the Effect of Financial Mismanagement on Municipalities Service Delivery: A Case Study of eThekwini Municipality-South Africa

Lungile Tim Mabunda, Jean Damascene Mvunabandi and Celumusa Makepeace Chonco

Journal of Accounting and Finance in Emerging Economies, 2023, vol. 9, issue 4, 639-654

Abstract: Purpose: This study investigated the effect of financial mismanagement on municipalities’ service delivery with a particular case study of eThekwini Municipality South Africa and to suggest how financial mismanagement can be addressed. &Design/Methodology/Approach: Scoping review of literature methodological framework was employed followed by Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA).Findings: This study indicates that financial mismanagement in eThekwini Municipality is one of the major concerns due to a lack of knowledgeable and skilled workers as well as political involvement from the administration. The results showed that there are various skill shortages, and it was noted that untrained people were being hired. The finding also said that poor municipal budget management is prevented by the political administration.Implications/Originality/Value: The findings of this study have significant implications for improving the eThekwini Municipality's financial management. This article contributes to the to the current body of knowledge and deepens understanding on the root causes of financial mismanagement and effect of financial mismanagement on municipalities’ service delivery, particularly in eThekwini Municipality-South Africa. The study further recommends municipality to hire suitably qualified staff with sound ethics to improve municipal financial management. This study is crucial for fraud and forensic practitioners, academia, and policymakers. It provided research agenda for future researchers.

Keywords: Financial mismanagement; Service Delivery; Political interference; Skill; Knowledge (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:src:jafeec:v:9:y:2023:i:4:p:639-654

DOI: 10.26710/jafee.v9i4.2891

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