Developmental governance: accountability and participatory governance at SOEs in South Africa

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Date
2023
Authors
Mophethe, Kelebile Hillary
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University of the Free State
Abstract
The topic of this research is on Developmental Governance focusing on accountability and participatory governance at SOEs in South Africa This study highlights the problems South African SOEs face in relation to governance challenges that impede their ability to operate effectively, create value and contribute to economic development. Most entities report to different political principles, i.e. to more than one state departments. Authorities have not yet been responsible for the reactions of the people and stakeholders. Public participation in these entities' decision making, transparency, feedback and accountability is not an open process. The continued low participation and lack of accountability will continue to bring down SOEs and other state agencies, eventually collapse and increase poverty and unemployment. High. The objective of this study was to investigate why SOEs in South Africa are not achieving socioeconomic growth and service delivery, and whether they contribute to the state development agenda, or not. The study also seeks to determine whether these entities recognize and adopt the principles of development and participatory governance in the management and operation of these entities and explore why. accountability gaps lie within them. The research applied the desktop study methodology. This study reveals that cadre deployment has greatly contributed to the destruction of most SOEs in South Africa and is a real obstacle to achieving competent open governance, as it prioritizes the reliability of appointed officials over the legitimacy and ability of these individuals to carry out the responsibilities entrusted to them. This is why public services have fallen into the trap of inefficiencies by various government institutions. State Owned Enterprises in South Africa face performance challenges as a direct result of the ANC's operating culture. The research reveals that SOEs in South Africa do not adhere to business ethics, principles and values of an ethical culture, transparency, good practice, effective monitoring and accountability, equity, as part of a corporate governance protocol that echoes the principles of the King's Code of Good Corporate Governance and the King's Report on Good Corporate Governance for South Africa and, there are currently no punitive consequences for non-compliance as there is no legal obligation on public companies to comply with the provisions of the King and Code Report. This study also reveals that State-Owned Enterprises in South Africa have become debt traps and fall into deeper financial problems, due to mismanagement and hopeless balance sheets, with oversight executive weakness. The research also found that there are limited opportunities available for citizens to receive feedback or information, and the policy-making process is perceived by the public as being driven by the elite, which excludes and demobilises them. Furthermore, it has been determined that despite applicable and available legal provisions for participatory procedures, civil society does not have the opportunity to engage in meaningful participation activities. means. Communication channels are inadequate, inaccessible, and crippled, and new methods are needed to engage citizens in policymaking. This research also found that mutual trust, honesty, transparency, equity and respect for opposing viewpoints for stakeholder cooperation within the practical and legal constraints of decision makers was violated. Furthermore, this research has shown that state agencies cannot function effectively because their mandates overlap to some extent, thus, they cannot fight or prevent corruption; activities of anti-corruption agencies have not been closely coordinated; and there is no cooperation between them to maximise efficiency. The study also revealed that the absence of a national anti-corruption charter, or enforceable code of conduct, has allowed corruption to pervade key institutions in the public as well as private sectors, and become a threat to national security. Additionally, the research has determined that the growth of good governance as a concept has given way to technocratic notions of good governance, disregarding autonomy in the civil service, and has led to governance failures, lack of accountability, lack of transparency, looting, cronyism, corruption, wasteful spending, mismanagement of funds and state holdings. Inadequate application of good governance transcends traditional ideals and practices of democracy and critical activism and prevents social actors from challenging oppression, corruption, and violations of human right.
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Dissertation (MGT (Governance and Political Transformation))--University of the Free State, 2023
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