Corporate governance and performance of local governments in Uganda:
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Date
2019-04
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics and Management
Abstract
This study was about corporate governance and performance of local governments in Uganda. It was based on three specific objectives which included:- to examine the ways in which proper corporate governance is executed in local governments, to examine the effectiveness of corporate governance in enhancing performance of local governments and to establish the relationship between corporate governance and performance of local governments. It was conducted from a sample of 80 respondents selected from Mbarara district local government. The study was based on the descriptive survey as the methodology. A descriptive survey is usually concerned with describing the population with respect to important variables with the major emphasis being the establishment of the relationship between the variables. This design was used to collect data from members of the population and describe existing phenomenon with reference to corporate governance structures.
The study findings indicate the ways in which proper corporate governance is executed in Mbarara District Local Government and these ways include transparency, honesty/integrity, citizen participation, accountability, public participation, openness and ethical conduct. Also the study findings revealed that the effectiveness of corporate governance in enhancing performance is due to fact that ever since Mbarara district local government started ensuring value for money during the procurement process and contract award .and that all contracts, performance reports and financial statements are audited by an independent auditor, budgets are well prepared and implemented on most priority basis, citizens’ complaints are adhered to and appropriate.
Construction contracts are well monitored until their completion, local revenues are accessed and collected in the right manner, there is adequate and skilled staff in order to quicken service delivery 34 (8 1 .0%), there is an appropriate mechanism for information flow from village level to district level and public expenditure is done in an equitable and right manner with much emphasis on priority areas. In addition, the study findings revealed that there is a positive relationship between corporate governance and performance of local governments.
The study concludes that corporate governance has been executed in a proper way in Mbarara district local government where the properness was found to be reflected in terms of openness, transparency, honesty, accountability, citizen participation, respect for the rule of law, trust/sincerity, ensuring professional and ethical conduct and citizen representation in council meetings which are all indicators of proper corporate governance.
The study recommends local governments to put in place effective budgetary and internal controls in order to reap a significant improvement in performance. Proper controls should be put in place over revenue collection, contract execution, procurement, recruitment and service delivery
Description
A Research Report Submitted to the College of Economics and Management in Partial Fulfillment of the Requirements for the Award of the Bachelor of Art in Economics at Kampala International University
Keywords
Corporate governance, Local governments, Uganda, Mbarara District Local Government