Ethical nexus: navigating organisational dynamics for enhanced compliance in municipal procurement processes.

Abstract

Background: The democratic breakthrough in South Africa brought hopes of improved living conditions, particularly through local governments responsible for service delivery. However, despite strict regulations, public procurement in South Africa remains vulnerable to corruption, leading to significant financial losses. Poor compliance with procurement laws and weak financial management within municipalities further exacerbate inefficiencies. Aim: This article examines how ethics affect compliance with municipal procurement regulations and seeks to identify strategies for improving accountability in local government procurement. Methods: A quantitative case study approach was adopted, with data gathered via questionnaires from municipal procurement personnel. Multi-level modelling was employed to analyse the data and interpret findings on compliance challenges. Results: The study revealed that poor financial management, ethical shortcomings and weak organisational structures are key drivers of non-compliance. It also identified strategies to improve procurement practices by focusing on ethics and accountability. Conclusion: Enhancing ethical governance and strengthening organisational frameworks are essential for improving procurement compliance and reducing corruption in South African municipalities. Contribution: This research provides insights into the ethical challenges in municipal procurement and offers practical recommendations to promote compliance and transparent, ethical governance.