The Role of Corporate Governance in Municipal Risk Management: A Case Study of the Ehlanzeni District Municipality, Mpumalanga
Abstract
Municipalities in South Africa continue to face criticism for weak governance systems and poor service delivery to communities. Many district and local municipalities struggle with financial management challenges, limited institutional capacity, and ineffective risk management practices. This study examines the relationship between corporate governance and municipal risk management in the Ehlanzeni District Municipality in Mpumalanga Province. The research focuses on four local municipalities within the district and explores how governance practices influence municipal performance and accountability. A mixed-methods approach was adopted to generate both quantitative and qualitative insights. Quantitative data were collected through a structured questionnaire administered to 216 municipal officials, while qualitative data were obtained through semi-structured interviews with 45 purposively selected participants. The quantitative data were analysed using the Statistical Package for the Social Sciences (SPSS) version 27, applying descriptive statistics, correlation analysis, ANOVA, and regression techniques. Qualitative data were analysed through thematic analysis to identify patterns related to governance roles, risk management processes, and institutional accountability. The findings reveal notable gaps in corporate governance knowledge and implementation across the municipalities. However, the principle of fairness emerged as a critical factor influencing municipal performance and stakeholder trust. The study recommends strengthening governance capacity through continuous training, improved stakeholder engagement, and better integration of corporate governance principles into municipal decision-making processes.
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