In a recent address, the Auditor-General, Ms Tsakani Maluleke, reflected that, despite efforts and guidance through the audit process, financial governance in municipalities remained a persistent challenge. She spoke about the importance of going back to basics and emphasised the need for not only competent leaders, but also leaders who “have the ethical posture and the discipline to do what they are supposed to do—to really worry about establishing a culture of ethical conduct, ensuring that there are effective performance management and accountability processes.”

Thirty years into democracy, the call for ethical and accountable leadership in local government is stronger than ever. This has been a consistent message from the Auditor General and other key stakeholders including the Department for Cooperative Governance (CoGTA), the South African Local Government Association (SALGA), as well as civil society.

Why all the fuss about ethical leadership? Ethical leadership is an absolute prerequisite for a successful developmental local government as envisaged by the Constitution. The 2015 Local Government Anti-Corruption Strategy envisions a local government sector where leadership is unquestionably committed to high ethical standards, service delivery, and good governance. The thinking underpinning the strategy is that ethical leadership serves as a catalyst for good governance by setting the tone for ethical behaviour, fostering an ethical culture, and for making principled decisions. Municipalities led by ethical leaders are more likely to achieve their developmental mandates, earn the trust of their communities and stakeholders, and uphold the principles of good governance.

Over the past few years, The Ethics Institute (TEI) has engaged with many municipal councillors and officials as part of the Local Government Ethical Leadership Initiative (LGELI). The project is a civil-society led research and consultation-driven initiative initiated by TEI, in partnership with CoGTA, SALGA, and the Moral Regeneration Movement (MRM).

These public servants express frustration with the slow pace of change, the lack of professionalism, and the unethical culture in municipalities. They want to work in environments where it is easy to do the right thing, allowing them to focus on delivering the necessary services to communities.

The politicisation of local government, the blurring of the political administrative interface, councillor competence, lack of accountability, and criminal capture are cited as key factors making it difficult to “do the right thing”. As one official recently explained, the problem in local government is not just about what we do, but how we do what we are supposed to do.

What has been particularly encouraging to see, however, is that while these public servants are tired, demoralised, and frustrated, they not only want to see change for the better, but also want to participate in bringing about that change.

So, what will bring about change? Local government is highly regulated and very compliance-orientated. Simply put, as another official explained- “We don’t need more rules! We need to implement the ones we have, ethically.” However,  if the environment or the culture is unethical, and our leaders are unethical, it becomes difficult to adhere to compliance. It therefore requires ethical leaders to stand together, set the tone, and ensure compliance with both the letter and spirit of the law.

For this reason, we developed the Code for Ethical Leadership in Local Government which was launched on 1 March 2024. It was informed by the research and extensive consultations undertaken as part of the LGELI project.

The Code may seem counterintuitive to many in local government as it is a non-enforceable document. It does not require external enforcement – it requires a personal moral choice.

This Code brings the moral aspect back into the conversation and reminds us that, at the end of the day, it is about a moral choice by leaders to act ethically, display courage, set the tone, and lead change. Only this will shape the collective effort to work towards an ethical culture in municipalities and bring about positive change in local government. The Code is for everyone who wants to do right and see a better South Africa, providing a structured way to talk about ethical leadership.

It offers guidance to local government leaders on how to navigate the issues that have the greatest impact on ethical governance in municipalities. There are behaviours that are destructive to ethical governance and should be avoided, and others that are supportive of ethical governance that should be promoted.

At the root of behaviour is the spirit of ethical municipal leadership—acting in the long-term sustainable interest of the municipality and all its communities. This spirit should be exercised to achieve three critical outcomes: an ethical culture, a well-functioning municipality, and trust in both the leaders and the municipality.

The Code sets out seven practical ethical leadership principles. These should be mindfully applied in the spirit of ethical leadership to achieve these outcomes. Unlike a rules-based code which requires compliance, a governance code encourages the mindful application of its principles to benefit good governance in the interest of the municipality and its stakeholders.

The key to the Code is that, at the end of the day, it is a moral choice for leaders, both individually and collectively, to make decisions and act in ways that promote ethical governance. The Code requires moral commitment from leaders rather than external enforcement. We believe that there are enough good leaders in local government who want to lead ethically and be part of shaping an ethical local government.

Since July this year, we have been conducting extensive training and awareness-raising across the country as part of institutionalising the Code. It is evident from these engagements that the time for this Code is now. Local government stakeholders are eager for an initiative like this, which helps them navigate the “how” of being ethical leaders and reminds them of the importance of their role in setting the tone for ethics and leading ethically. They see the Code as the missing piece of the puzzle and understand that it will require individual and collective choices for the right ethical action.

There is a willingness and commitment by the local government leaders we have engaged with to live the spirit of ethical leadership, and that gives us confidence that things will change for the better.

Our hope is that leaders who exercise the moral choice to lead ethically will live the Code, share it in their areas of influence, and in so doing, be part of shaping an ethical local government. If ever there ever was a time to remoralise local government, that time is now.

About the author: Fatima Rawat is a Senior Ethics Subject Matter Expert at The Ethics Institute.