Oversight roles and governance responsibilities of the Treasury in South Africa under the Public Finance Management Act

Type of the article: Research ArticleThe study examined the effectiveness of the South African National Treasury’s oversight responsibilities under the Public Finance Management Act, motivated by widespread public sector failures linked to corruption, maladministration, and weak financial oversight. Data were collected through a cross-sectional study in Limpopo province using a census approach targeting all individuals with relevant oversight experience. Participants included audit committee members, board directors, legislators, accounting officers, CEOs, CFOs, chief risk officers, heads of internal control and compliance units, and auditors – key actors in financial monitoring and performance oversight. Data analysis using STATA involved descriptive statistics, Fisher’s Exact Test, Exploratory Factor Analysis, Pearson correlations, and multiple linear regression. Results indicated that most participants believed the Provincial Treasury lacks an approved, documented policy or framework for its oversight functions. Regression analysis showed that age (β = 2.78, P = 0.001) was significantly positively associated with support for oversight in improving financial controls, suggesting that older participants value stronger oversight mechanisms. Conversely, years in the current grade level (β = –2.58, P = 0.001) were negatively associated with such support. The study concludes that developing formalized oversight frameworks is vital for strengthening financial management, accountability, and service delivery. It recommends improving capacity through staff training, appointing competent professionals, adopting technology in operations, and ensuring robust monitoring, risk assessment, and communication systems.