The Employee Contributions to PFMA Non-Compliance Challenges in South Africa:  Contributions From Limpopo Provincial Administration

Jonas MAKGOBA; Monde  FAKU; Kabelo MOETI

doi:10.38142/ijesss.v6i4.1444

Authors

Jonas MAKGOBA Tshwane University of Technology, South Africa
Monde FAKU Tshwane University of Technology, South Africa
Kabelo MOETI Tshwane University of Technology, South Africa

DOI:

https://doi.org/10.38142/ijesss.v6i4.1444

Keywords:

Compliance, Non-Compliance, PFMA, Limpopo Province, Public Finance

Abstract

Compliance with the Public Finance Management Act is essential for the whole South African government. Nevertheless, the South African Auditor General has found non-compliance since most ministries within the provincial administration of Limpopo still violate the PFMA. Some of the non-compliance may lead to serious misstatements and, eventually, an AGSA qualified audit opinion. Noncompliance has a negative impact on the general population since it can occasionally lead to compromises in the quality of services provided by government bodies. The study assessed how personnel in departments of the province of Limpopo contributed to PFMA non-compliance. The study used an interview guide to gather the primary data and adhered to the qualitative research methodology. Purposive sampling was used to choose study participants based on their expertise with PFMA compliance across the province of Limpopo's various departments. Future PFMA compliance may be enhanced by the practical recommendations and ideas that the study generated. The study's consequences included identifying the problems that impact compliance in the public sector and providing recommendations for how to resolve them. Other aspects of the South African government are also impacted by the study's conclusions, such as the enhancement of PFMA compliance in the Limpopo public service administration.

Downloads

Download data is not yet available.

References

Alchian, A.A., & Demsetz, H., 1972, Production, Information Costs, and Economic Organization, The American Economic Review, Vol. 62, No. 5 (Dec. 1972), pp. 777-795.

Padilla, A., 2002, Can Agency Theory Justify the Regulation of Insider Trading? The Quarterly Journal of Austrian Economics 5(1): 3-38

Davis, J. H., Schoorman, F. D., & Donaldson, L., 1997, Toward a stewardship theory of management. Academy of Management Review, 22(1): 20-47.

DCDT, 2021. Banking, Cash and Revenue Management Policy. Pretoria: DCDT

Du Plessis, N., 2004. Progress with the implementation of the PFMA. Auditing SA, 2004(22), pp. 17-20.

Eskom, 2019. Public Finance Management Act (PFMA) Directive - Procedure for dealing with irregular expenditure. Johannesburg: Eskom.

Fourie, D. & Poggenpoel, W., 2016. Public sector inefficiencies: Are we addressing the root causes? South African Journal of Accounting Research, 31(3), p. 169–180.

Hoflmayr, M., 2022. Inflation explained: What lies behind and what is ahead? London: European Union.

Jensen, M.C., & Meckling, W.H., 1976, Theory of the firm: Managerial behaviour, agency costs and ownership structure, Journal of Financial Economics, Volume 3, Issue 4, October 1976, Pages 305-360.

Kanyane, M.H., 2018, Apartheid, Democracy and (De)coloniality at the Crossroad, Africa-Europe Group for Interdisciplinary Studies, Volume: 28, Brill publishers, Leiden, Boston.

Karimi, L., 2008, Do Female and Male Employees in Iran Experience Similar Work-Family Interference, Job, and Life Satisfaction? Journal of Family Issues, 30, 124-142.

Maiketso, K.G., 2015, The Level of Compliance with Public Finance Management Act in Procurement: A case of North-West Parks and Tourism Board, Masters Thesis, University of North-West, South Africa.

Mandlazi, L. S., 2021. ‘The effectiveness of financial management strategies in public primary schools in South Africa.’ Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(10), pp. 5979-5990. https://doi.org/10.17762/turcomat.v12i10.5421

Mokgahla, D., 2022, Evaluating the role of employee compliance with the Public Finance Management Act at the National Department of Communications and Digital Technologies, Gauteng province. Masters thesis, MANCOSA, South Africa.

Mullon, P. A. and Ngoepe, M., 2019. ‘An integrated framework to elevate information governance to a national level in South Africa.’ Records Management Journal.

National Treasury, 2001, Treasury Regulations: for departments, constitutional institutions and public entities, for departments, constitutional institutions and public entities, National Treasury, South Africa.

Ntsele, C. N., 2014. Accountability and transparency in managing school finances at primary schools in Johannesburg South: Dissertation. Pretoria: Unisa.

Oageng, M.F., 2021, Implications of noncompliance with public finance management act on the maintenance of fiscal policy in the North-West province, Masters Thesis, North-West University, South Africa.

Pattanayak, S., & Fainboim, I., 2011, Treasury single account: an essential tool for cash management, Washington, DC: International Monetary Fund.

Platinga, P., 2021, Innovation and the public service: achieving inclusive service delivery, Working paper, Human Sciences Research Council.

Roman, A. D., 2008. Financial Reporting and the Public Finance Management Act (PFMA) in the Western Cape: Dissertation. Cape Town: University of the Western Cape.

Sutherland, E., 2021. ‘South Africa-Response to draft National Policy on Data and Cloud.’ Available at: SSRN 3922223.

Tebele, M.M., 2016, Problems and challenges related to public policy implementation within the South African democratic dispensation: A theoretical exploration. MA Political Studies. Potchefstroom: North-West University.

The Office of the Auditor General, 2020, 2019-2020 Consolidated general report on national and provincial audit outcomes, AGSA, South Africa.

Weinstock, L. R., 2021. Fiscal Policy: Economic Effects. New York: Congressional Research Service.