Even though King V is only mandatory for JSE listed companies, apply the King V governance framework principles to a municipality whose officials are colluding with water tanker mafias. The King V framework has four governance outcomes: ethical culture, performance, conformance, and legitimacy. Which answer correctly evaluates all four?

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Answer

All four outcomes have failed: ethical culture because bribery is accepted as normal, performance because corrupt tender processes violate the MFMA, conformance because more than half the water budget is lost to corruption and legitimacy because the municipality harms the residents it should serve.

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Performance has failed, because more than half the water budget is lost to corruption and conformance have failed because officials are not following procurement regulations and the MFMA. Ethical culture remains intact and also legitimacy because the municipality is still elected.

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Only legitimacy has failed, because residents have lost trust in the municipality.

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All four outcomes have failed: ethical culture because bribery is accepted as normal, performance because more than half the water budget is lost to corruption, conformance because corrupt tender processes violate the MFMA, and legitimacy because the municipality harms the residents it should serve.

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Conformance has failed, because officials are not following procurement regulations and legitimacy has failed because residents have lost trust in the municipality. Ethical culture and performance are upheld.

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Even though King V is only mandatory for JSE listed companies, apply the King V ...

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