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Abstract - Estimating the Long Run Problem of Corruption in South Africa
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Abstract: Corruption is one of the devastating catastrophe that denies the nation their potential wealth and development. Institutions and economic variables play a critical role in determining the level of corruption for any economy in the world. The tenacity of this paper is to assess the determinants of corruption in South Africa. This paper applied most classical econometric technique of Engle-Granger to estimate the long run relationship between corruption and identified determinants. The study used the annual data covering the period 1984 to 2016. The findings of the study reveals that GDP per capita, expenditure on public order, government stability and democratic independence have significant impact to curb corruption in South Africa. The findings implies that in order to combat corruption South African authorities they have to allocate resources in programs that combat corruption and effect independent commissions to seize the problem further. Keywords: Corruption, Government expenditure, Corruption Perceptions Index. |
Abstract - Exploratory Review of State-Owned Entities: Going Concern Problem
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Abstract: The need for effective governance at state-owned entities continues to be emphasised by ongoing revelations of scandals involving pervasive corruption and wasted resources. This paper provides a critical review of state-owned entities, based on the going concern concept, for the period 2014 to 2018. The paper does so by reviewing the standard functions of board committees in the areas of responsibility, competencies, transparency, accountability and performance. The research methodology employed in this article includes content analysis. The paper focuses on the cases of South African Airways, the South African Broadcasting Cooperation, the Passenger Rail Agency of South Africa and Eskom. Thus, this paper reveals that state-owned entities are suffering from weak balance sheets and negative equity; liquidity challenges; negative publicity; unhelpful board dynamics; loss of confidence from key stakeholders; forensic audit reports pointing to corruption, and a failure to recognise that oversight committees are not an end in themselves, but a means to achieve effective governance. The paper further reveals that the challenges facing board committees include political pressure and the lack of continuity and accountability. Keywords: Board committees, public entities, governance, accountability, going concern. |
Abstract - Is the Quality of Governance a Good Pointer to the General Economic Health of the Country?
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Abstract: Good governance is believed to be instrumental in facilitating an environment for sustainable economic growth, especially for developing countries. It is no surprise that there is a growing public interest in the interplay of political and economic systems in South Africa. The chief concern is that the country is plagued by a couple of economic challenges such as sluggish gross domestic product (GDP) growth, poverty, lack of service delivery, poor financial management, weak business confidence, massive unemployment, and corruption are threats to the economic growth. It is generally believed that good governance would minimize persistent ills of the economy and ultimately pave the way for restoring economic growth. But is the quality governance the principal stimulus of a country’s economic growth? This is the chief questions which this article will attempt to answer. Based on the good governance and neoclassical growth theory, and good governance theory, this article seeks to analyse and evaluates the impact of the quality of governance on the growth of the economy in South Africa. Keywords: Corruption, Economic growth, good governance, neoclassical and poor governance. |
Abstract - Outsourcing and Tendering Complexities in the South African Public Sector Institutions: A Demise of New Public Management Theory?
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Abstract: The provision of public service, which is traditional provided by the government institutions, through a private institution is prevalent in most developed and developing countries. Generally, most government institutions outsource the provision of public service and procure goods through a tender process. According to the new public management theory, outsourcing of traditionally government-provided services can result in major cost savings. However, in South Africa, evidence suggest that outsourcing and tendering present several challenges in the public sector institutions. In fact, South Africa loses between R25-R30 billion of the annual government procurement budget due to corruption associated with outsourcing and tendering. In this regard, the most common pathologies relating to outsourcing and tendering are collusive bidding practise, patronage, kickbacks, bribery and flouting of procurement legislation, regulations and policies. As a result, most public sector institutions are plunged into financial crisis and inefficiencies. Moreover, large amount of taxpayers’ money cannot be accounted for due to rent-seeking behaviour. In view of the arguments above, this paper discusses the various complexities linked with outsourcing and tendering in the South African public sector institutions. To this end, different scholarly articles, the official reports of the investigative institutions in South Africa were consulted. This paper concludes that the challenges presented by outsourcing and tendering in government institutions foreshadow a demise of the new public management theory. It is recommended that public sector institutions in South Africa need to consider building state capacity, introduce proper monitoring and evaluation systems in procurement and ameliorate governance and compliance with legal statutes, regulations as well as policies. Nevertheless, this could be achieved successfully through building capacity in the public sector institutions. Keywords: Contracting, corruption, outsourcing, procurement, tendering. |
