EVALUATING THE INFLUENCE OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE IN THE FREE STATE PROVINCIAL GOVERNMENT, SOUTH AFRICA

Abstract
The Free State Provincial Government (FSPG) faces persistent governance challenges that adversely affect fiscal outcomes, service delivery, and public trust. This study provided an empirical assessment of the impact of corporate governance practices on financial performance within this public sector entity. A qualitative approach was employed, utilising semi-structured interviews with a purposive sample of twelve key stakeholders, yielding a 100% participation rate. Thematic analysis revealed that the FSPG was beset by a deeply interconnected syndemic of governance failures rather than isolated inefficiencies. Three core pathologies were identified include the erosion of the politico-administrative dichotomy through pervasive political interference; chronic leadership instability and managerial incompetence; and systemic capacity deficits in core functions. The study concluded that the province's challenges stem not from deficient policy but from a fundamental crisis of implementation. Recommendations include codifying politico-administrative roles, institutionalising a "Closed-Loop" accountability system for audit findings, developing mandatory Standard Operating Procedures, and stabilising leadership. Restoring financial health and public trust in the FSPG requires decisively addressing these foundational governance pathologies.

Keywords
Corporate governance, Financial performance, Politico-administrative dichotomy, Free State Provincial Government

Cite this paper
Bandile Freedman Machobane, Joseph Sigauke, EVALUATING THE INFLUENCE OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE IN THE FREE STATE PROVINCIAL GOVERNMENT, SOUTH AFRICA , SCIREA Journal of Management. Volume 10, Issue 2, April 2026 | PP. 31-47. 10.54647/management630190

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