Oversight roles and governance responsibilities of the Treasury in South Africa under the Public Finance Management Act
-
Author(s)Malerotho Thomas MphahleleLink to ORCID Index: https://orcid.org/0009-0003-3808-2291
,
Kgobalale MotubatseLink to ORCID Index: https://orcid.org/0000-0003-1997-5441
,
DP Van der Nest
-
DOIhttp://dx.doi.org/10.21511/afc.06(1).2025.08
-
Article InfoVolume 6 2025, Issue #1, pp. 79-91
- 7 Views
-
0 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Type of the article: Research Article
The study examined the effectiveness of the South African National Treasury’s oversight responsibilities under the Public Finance Management Act, motivated by widespread public sector failures linked to corruption, maladministration, and weak financial oversight. Data were collected through a cross-sectional study in Limpopo province using a census approach targeting all individuals with relevant oversight experience. Participants included audit committee members, board directors, legislators, accounting officers, CEOs, CFOs, chief risk officers, heads of internal control and compliance units, and auditors – key actors in financial monitoring and performance oversight. Data analysis using STATA involved descriptive statistics, Fisher’s Exact Test, Exploratory Factor Analysis, Pearson correlations, and multiple linear regression. Results indicated that most participants believed the Provincial Treasury lacks an approved, documented policy or framework for its oversight functions. Regression analysis showed that age (β = 2.78, P = 0.001) was significantly positively associated with support for oversight in improving financial controls, suggesting that older participants value stronger oversight mechanisms. Conversely, years in the current grade level (β = –2.58, P = 0.001) were negatively associated with such support. The study concludes that developing formalized oversight frameworks is vital for strengthening financial management, accountability, and service delivery. It recommends improving capacity through staff training, appointing competent professionals, adopting technology in operations, and ensuring robust monitoring, risk assessment, and communication systems.
- Keywords
-
JEL Classification (Paper profile tab)G39, M40, M42, H83
-
References56
-
Tables3
-
Figures1
-
- Figure 1. Perceived effectiveness of roles and responsibilities on oversight and governance by LPT
-
- Table 1. Socio-demographics of study participants
- Table 2. Evaluating the roles and responsibilities of the LPT on oversight and governance by job/employment grade level
- Table 3. Linear regression (continuous outcome variable) – Oversight role in improving financial controls
-
- Ajam, T. (2016). Public financial management reforms for value-for-money in selected South African provincial governments (Ph.D. Thesis). University of Pretoria (South Africa).
- Ajam, T., & Fourie, J. D. (2014). The role of the provincial Treasury in driving budget reform in South Africa's decentralised fiscal system. Administratio Publica, 22(3), 43-61.
- Akinsola, K., Onu, K., & Owoeye, Y. (2025). Legal compliance in corporate governance frameworks: Best practices for ensuring transparency, accountability, and risk mitigation. Boston: New England Law.
- Almquist, R., Grossi, G., Van Helden, G. J., & Reichard, C. (2013). Public sector governance and accountability. Critical Perspectives on Accounting, 24(7-8), 479-487.
- Al-Mulla, M., & Bradbury, M. E. (2020). The demand and supply timely financial reports. Pacific Accounting Review, 32(3), 335-353.
- Bartocci, L., & Picciaia, F. (2013). The case of the auditor-general of South Africa. In C. Busco, M. Frigo, A. Riccaboni, & P. Quattrone (Eds.), Integrated Reporting: Concepts and Cases that Redefine Corporate Accountability (pp. 331-346). Cham: Springer International Publishing.
- Bolatito, A. O. S. (2023). Corruption: An impediment to public service delivery in Africa. TWIST, 18(4), 104-110.
- Botlhoko, T. S. (2017). Promoting effective financial accountability in local government in the North West province: Developing operational guidelines for municipal public accounts committees (Doctoral Thesis). Bloemfontein: Central University of Technology, Free State).
- Boufounou, P., Eriotis, N., Kounadeas, T., Argyropoulos, P., & Poulopoulos, J. (2024). Enhancing internal control mechanisms in local government organizations: A crucial step towards mitigating corruption and ensuring economic development. Economies, 12(4), Article 78.
- Bushe, B. (2019). The causes and impact of business failure among small to micro and medium enterprises in South Africa. Africa’s Public Service Delivery and Performance Review, 7(1), Article a210.
- Cembi, A. V. O. (2019). Assessing the use of private sector techniques and strategies in the public sector: The case of the department of Provincial Treasury & Planning, Eastern Cape Province (Master’s Thesis). Nelson Mandela University. Africa).
- Cloete, F. (2005). Measuring good governance in South Africa (Unpublished Research Report). Stellenbosch: School of Public Management and Planning, Stellenbosch University.
- Daniels, N. (2015). An evaluation of treasury oversight and budget under-spending in selected Eastern Cape provincial departments (Master’s Thesis). Nelson Mandela Metropolitan University.
- Diedericks, M. (2017). Challenges in reporting on predetermined objectives to the Auditor-General: The case of Limpopo provincial departments. The Journal for Transdisciplinary Research in Southern Africa, 13(1), Article a386.
- Dorasamy, N. (2024). Oversight bodies’ role in financial sustainability in local governments. In N. Dorasamy & T. Kapesa (Eds.), Financial Sustainability of Local Governments in Southern Africa (pp. 61-84). Routledge.
- Dzomira, S. (2015). Governance and fraud risk management in the public sector in South Africa. Public and Municipal Finance, 4(3), 25-36.
- Efunniyi, C. P., Abhulimen, A. O., Obiki-Osafiele, A. N., Osundare, O. S., Agu, E. E., & Adeniran, I. A. (2024). Strengthening corporate governance and financial compliance: Enhancing accountability and transparency. Finance & Accounting Research Journal, 6(8), 1597-1616.
- Fourie, D., & Poggenpoel, W. (2017). Public sector inefficiencies: Are we addressing the root causes? South African Journal of Accounting Research, 31(3), 169-180.
- Good, D. A. (2014). The politics of public money. University of Toronto Press.
- Govender, J., & Reddy, P. S. (2015). A review of local government experience in South Africa: Successes and failures. African Journal of Public Affair, 8(4), 12-25.
- Hsu, H. Y., & Zhang, Y. (2025). Public organizational stewardship: Conceptualization and application. Perspectives on Public Management and Governance, 8(1), 27-37.
- Independent Regulatory Board of Auditors (IRBA). (2019). Guide for registered auditors. Auditing in the public sector. IRBA.
- Janda, S. N., & Masango, R. S. (2024). Oversight function and accountability as cornerstones for good governance in the South African local government. Journal of Public Administration, 59(1), 87-101.
- Jori, R. (2023). An analysis of challenges faced by internal audit departments in the public sector: A case study of eThekwini Metropolitan Municipality (Master’s Thesis). Durban University of Technology.
- Kraai, S., Holtzhausen, N., & Malan, L. (2017). Oversight mechanisms in local government – A case of Ekurhuleni Metropolitan Municipality in South Africa. African Journal of Public Affairs, 9(6), 59-72.
- Lethoko, M. (2014). Budget underspending in Limpopo province: Is corruption to blame? Journal of Public Administration, 49(3), 779-793.
- Libala, P. (2014). A critical assessment of the role of Eastern Cape provincial treasury in enforcing compliance with public finance management act for public entities, (South Africa) (Master’s Thesis). University of Fort Hare.
- Madue, S. M. (2013). The role of oversight in governance. Loyola Journal of Social Sciences, 27(1).
- Martínez-Mesa, J., González-Chica, D. A., Duquia, R. P., Bonamigo, R. R., & Bastos, J. L. (2016). Sampling: How to select participants in my research study? Anais Brasileiros De Dermatologia, 91(3), 326-330.
- Mathebula, N. E. (2016). Audit outcomes and their role in clean administration in municipalities within Limpopo Province, South Africa: a deterrence theory approach. SAAPAM – South African Association of Public Administration and Management.
- Matoane, J. M., & Mukonza, R. M. (2024). An analysis of the influence of good governance on service delivery in Limpopo Province. Journal of Public Administration, 59(1), 69-86.
- Mojapelo, M., & Ngoepe, M. (2021). Contribution of Auditor-General South Africa to records management in the public sector in South Africa. New Review of Information Networking, 26(1-2), 33-49.
- Monyepao, T. T. (2017). Implementation of section 100 of the Constitution of 1996 intervention in Limpopo Province (Master’s Thesis). University of Johannesburg, South Africa.
- Monyepao, T. T., & Uwizeyimana, D. E. (2018). The effects of the topdown management approach on employees’ attitude towards the South African national government intervention in Limpopo Province. Administratio Publica, 26(2), 91-117.
- Moolman, S., & Van Der Waldt, G. (2022). The effectiveness of financial governance structures in the South African public sector. African Journal of Public Affairs, 13(1), 1-26.
- Msindwana, M. C., & Ngwakwe, C. C. (2022). Internal audit effectiveness and financial accountability in the provincial treasuries of South Africa. International Journal of Economics and Financial Issues, 12(3), 86-96.
- Munzhedzi, P. H. (2016). Fostering public accountability in South Africa: A reflection on challenges and successes. The Journal for Transdisciplinary Research in Southern Africa, 12(1), Article a339.
- Naidoo, I. (2022). With great POWER comes great Responsibility. The Forensic Practitioner, 2022(1), 12-14.
- National Treasury (NT). (2000). In year management, monitoring and reporting.
- Nengwekhulu, R. H. (2009). Public service delivery challenges facing the South African public service. Journal of Public Administration, 44(2), 341-363.
- Ogunsola, K. O., Balogun, E. D., & Ogunmokun, A. S. (2021). Enhancing financial integrity through an advanced internal audit risk assessment and governance model. International Journal of Multidisciplinary Research and Growth Evaluation, 2(1), 781-790.
- Olowu, A. (2025). Policy implementation and good governance for sustainable development in Nigeria. Journal of Sustainable Development Law and Policy (The), 16(1), 52-67.
- Pearson, J., Pillay, S., & Chipkin, I. (2016). State building in South Africa after apartheid. The history of the National Treasury (Working Paper). Public Affairs Research Institute.
- Petraşcu, D., & Tieanu, A. (2014). The role of internal audit in fraud prevention and detection. Procedia Economics and Finance, 16, 489-497.
- Rajala, T., & Jalonen, H. (2025). Beyond simplification in public sector accountability: Contradictions between principal-agent and complexity theories. Public Administration Review.
- Ramutsheli, M. P., & Janse van Rensburg, J. O. (2015). The root causes for local government’s failure to achieve objectives. Southern African Journal of Accountability and Auditing Research, 17(2), 107-118.
- Sari, R. (2023). Enhancing corporate governance through effective oversight and accountability. Advances: Jurnal Ekonomi & Bisnis, 1(6), 344-356.
- Steyn, L. S. (2013). Professionalising local government: The implementation of the national Treasury: Municipal regulations on minimum competency levels (Ph.D. Thesis). University of Western Cape.
- Thomann, E., Ioannidis, G., Zgaga, T., & Schwarz, F. (2025). Explaining public sector corruption: The hexagon model. WILEY Governance, 38(2), Article e70000.
- Vabaza, L. (2015). A review of the implementation of government procurement policy (Unpublished Master’s Thesis). University of the Witwatersrand.
- Van Staden, A., Fourie, D. J., & Holtzhausen, N. (2022). Development of an accountability framework in the public procurement system: Case of the emerging market.
- Van Wyk, H. A. (2003). A performance measurement approach to improve financial management in provincial governments in South Africa (Doctoral Thesis). University of the Free State.
- Vorster, H., & Nwosu, L. (2024). Evaluating policies and regulations used to control corruption among accounting officers in the public sector of South Africa: A systematic literature review. Frontiers in Sociology, 9, Article 1371287.
- Wishnia, J. (2022). Understanding managers’ experiences of public financial management policies and reform: A qualitative study from a South African provincial department of health (Doctoral Thesis). University of the Witwatersrand.
- Yanney, A. A. S. (2025). Cross-border financial regulation and its influence on multinational business operations, tax structures and investment flows. World Journal of Advanced Research and Reviews, 26(03), 597-620.
- Zioło, M., Filipiak, B. Z., Bąk, I., & Cheba, K. (2019). How do environmental, social, and governance (ESG) factors impact on public finance performance? Risk, efficiency, and public financial system perspectives. In A. Bem, K. Daszynska-Zygadlo, T. Hajdíková, E. Jáki, & B. Ryszawska (Eds.), The International Conference Finance and Sustainability (pp. 261-275). Cham: Springer International Publishing.
-
African Generation Y students’ personal finance behavior and knowledge
Marko van Deventer 
doi: http://dx.doi.org/10.21511/imfi.17(4).2020.13
Investment Management and Financial Innovations Volume 17, 2020 Issue #4 pp. 136-144 Views: 1766 Downloads: 767 TO CITE АНОТАЦІЯPersonal financial management is important, given uncertainties in both financial and economic environment. However, published research on African Generation Y students’ personal finance behavior and knowledge is limited. This study aimed to evaluate African Generation Y students’ personal finance behavior in terms of their attitudes towards financial planning and whether this cohort believes that they have the skills to manage their finances successfully. In addition, this study sought to evaluate African Generation Y students’ knowledge regarding personal finance. A convenience sample of 500 African students across the campuses of two South African public higher education institutions situated in the Gauteng province was surveyed using structured, self-administered questionnaires. The t-test results indicate that the sample deems the process of planning personal finances and managing credit, insurance, investment, and estate, as important. Moreover, the students scored low in the broad personal finance knowledge areas of basic finance, saving, spending, and debt, suggesting that this cohort is financially illiterate. The results also indicated that the students think they have the financial skillset to manage their personal finances. A high Pearson’s correlation coefficient was noted between sampled participants’ personal finance behavior and their observed personal finance management skillset regarding the relationship between the constructs. However, an insignificant relationship was found between attitudes towards personal finance and financial knowledge and between financial knowledge and African Generation Y students’ apparent finance skills. Understanding African Generation Y students’ personal finance behavior and knowledge, universities and financial institutions can more effectively identify gaps and deficiencies in students’ personal finance endeavors.
-
Using the business model canvas to improve audit processes
Zbysław Dobrowolski ,
Łukasz Sułkowski ,
Mirela Panait
doi: http://dx.doi.org/10.21511/ppm.20(3).2022.12
Problems and Perspectives in Management Volume 20, 2022 Issue #3 pp. 142-152 Views: 1668 Downloads: 643 TO CITE АНОТАЦІЯThe study aims to determine whether auditors can use a business model canvas in their operations and how it increases the auditing value. This paper uses qualitative methods, including in-depth interviews with 37 internal auditors from Poland. It shows that the current channel of communicating audit assumptions with requesters is insufficient to facilitate audit processes. The auditors’ communication with their clients is limited by being in their knowledge area. The study presents a modified business model canvas, which fits auditors’ needs. The proposed changes rely on a different sequence of the traditional Osterwalder’s Canvas building blocks. Besides, modified Osterwalder’s model includes Mission, Impact, and Accountability blocks. These blocks, added to the model, make aware audit parties that the auditors are mission-focused and impact-driven on audited organizations and their environment. Adopting the business model canvas framework in the audit process showed potential, as auditors can better explain audit goals and limitations. The study fits the literature related to firms because it emphasizes that creating the process understandability for external parties is a crucial performance point.
-
The effect of tax avoidance on firm value with leverage as a moderating variable
Mohammad Fawzi Shubita
doi: http://dx.doi.org/10.21511/imfi.21(2).2024.27
Investment Management and Financial Innovations Volume 21, 2024 Issue #2 pp. 336-344 Views: 1241 Downloads: 756 TO CITE АНОТАЦІЯThis study investigated the effect of tax avoidance (TAV) on company value in Jordan, with a specific focus on the moderating role of leverage. The sample is 55 Jordanian industrial firms listed on the Amman Stock Exchange for the study period from 2005 to 2022. Given the evolving regulatory landscape and the importance of tax planning strategies for corporate performance, understanding these dynamics is critical. Employing panel data analysis spanning several years, the study examined the link between tax avoidance, leverage, and company value. The results indicated a significant negative association between TAV and firm value (the correlation between them is –29.3%), suggesting that firms engaging in higher levels of TAV experience lower market valuations. Additionally, the analysis reveals that leverage plays a crucial moderating role in this relationship, amplifying the negative impact of TAV on firm value. The study also found a strong correlation between firm value and size, and the relationship between firm value and ROA remains significant and positive. These findings provided valuable information for policymakers, corporate executives, and investors navigating the complexities of contemporary business environments in Jordan and beyond.
