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GOVERNANCE GAPS UNDERMINE PUBLIC SECTOR PROGRESS IoDSA OFFERS THE TOOLS TO FIX IT
Across South Africa’s public sector, from NGOs to municipalities, one consistent truth remains: strong governance builds trust, enables service delivery, and secures sustainability. Conversely, weak governance opens the door to reputational damage, stakeholder distrust, and, in some cases, the collapse of entire organisations.
The Institute of Directors in South Africa (IoDSA), through its advocacy of the King IV Report on Corporate Governance, plays a critical role in helping public sector bodies bridge this governance gap.
Recent challenges at Lifeline Ekurhuleni - where a flawed board nomination process led to delays, confusion, and serious questions from stakeholders - serve as a cautionary tale for all governance structures in the public space. The absence of clear communication, inconsistent nomination procedures, and insufficient vetting of candidates exposed the organisation to reputational risk and threatened its funding.
As Parmi Natesan, CEO of IoDSA succinctly puts it, “Having a capable board is absolutely essential for the effective functioning, oversight, and control of an organisation.” Her call for formal, transparent board appointments and training that aligns with King IV principles resonates strongly at a time when public accountability is under intense scrutiny.
The case is clear: municipalities, state agencies, and publicly funded institutions must strengthen governance not just as a compliance exercise, but as a strategic imperative. Board stability, legal literacy, due diligence, and ethical leadership are not optional - they are foundational pillars for achieving service delivery goals and maintaining public trust.
IoDSA’s value to the public sector lies in both prevention and capacity building. Through targeted director training, professional development, and independent guidance on governance best practice, the IoDSA helps institutions avoid the very pitfalls seen at Lifeline Ekurhuleni. Their work supports a culture of informed oversight, empowering board members to act in the public interest, ask the right questions, and uphold transparency.
"Good governance isn’t just about compliance - it’s the foundation for trust, accountability, and effective service delivery.” - Parmi Natesan, CEO, IoDSA
In a climate where funders and communities alike demand accountability, governance is no longer a behind-thescenes concern. It is front and centre in determining whether public institutions thrive or falter. Good governance improves operational performance, enhances credibility, and ensures that resources are used effectively and ethically.
For municipalities, this guidance is especially relevant. Many face recurring audit issues, leadership instability, and capacity constraints that hinder service delivery. The tools and insights provided by IoDSA - rooted in King IV - can help address these challenges in a sustainable way. Whether through training on fiduciary duties, strategic planning, or risk management, IoDSA enables public sector leaders to strengthen oversight and promote integrity across all levels of governance.
Importantly, governance failures don’t just impact internal processes - they affect communities, development outcomes, and public confidence. When governance is weak, projects stall, finances suffer, and public trust erodes. When governance is strong, institutions earn credibility, attract investment, and deliver better results.
The Lifeline episode may be an isolated incident, but its lessons are universal. It shows how critical governance structures are to organisational resilience and stakeholder confidence. It also highlights why the IoDSA remains a vital resource for public sector entities that wish to improve their leadership and governance frameworks.
As Natesan concludes: “Good governance not only ensures board stability but also significantly mitigates reputational risks, enhancing trust and confidence among stakeholders.” In the ongoing pursuit of effective public service, that trust is everything.
With IoDSA’s continued guidance, South Africa’s public institutions are better equipped to close the governance gap - and deliver on their mandates with credibility, clarity, and care.
