An assessment of the capacity of selected Gauteng metropolitan local governments' audit and risk committees to combat fraud

Abstract

This research addresses the critical issue of the apparent failures of Audit and Risk Committees (ARCs) in combatting fraud and corruption within selected metropolitan municipalities in the Gauteng Province. The focus is on the challenges faced by ARC members. The study aimed to assess committee members' capacity to address fraud, corruption, and related irregularities. Secondary objectives, including formulating frameworks for accountability, performance assessment, and guidelines for committee member capacities, supported the primary goal. The evaluation uncovered systemic challenges within the municipal governance structure that deter the efficacy of ARCs. Ineffectiveness stemming from councils that rubber-stamped reports without substantial actions was identified as a significant obstacle. The integrity and independence of ARCs are compromised by political considerations and affiliation, undermining their ability to address fraud and corruption objectively. The lack of effective consequence management has emerged as another crucial challenge, hindering audit outcomes and accountability improvements. In addressing these findings, the research proposes multifaceted recommendations to enhance the effectiveness of ARCs and mitigate the identified challenges. Legislative enhancements are recommended to empower ARCs with more unambiguous mandates and consequences for non-compliance. Establishing targeted training programmes for committee members, addressing forensic auditing and legal aspects, is proposed to bridge existing knowledge gaps. The study underscores the importance of these recommendations for municipalities, emphasising the need for proactive measures to strengthen the defence against fraud and corruption. The identified gaps in committee capacities and the significance of training and development highlight the continuous improvement required within ARCs. The research concludes by advocating for the implementation of suggested frameworks, mechanisms, and guidelines to bolster the effectiveness of ARCs, contributing to transparent and accountable governance.