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CAS1501-26-S1
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Learning Unit 3 discusses the concept of coercive, imitative and normative pressures in institutional theory, which influences how institutions act. Could these pressures have played a role in the Tembisa Hospital fraud? Evaluate critically.
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Institutional crime (where the institution benefits) differs from organised crime (where the institution is itself criminal). Which classification best applies to the relationship between the municipalities and the water tanker mafias?
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A new accounting graduate joins a municipality’s procurement department. Her manager asks her to approve a water tanker contract that was awarded to a company with no track record. Advise her on how she should respond in terms of professional judgement.
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The article mentions civil society groups created databases and WhatsApp reporting groups. Are these preventative, detective or corrective controls?
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The article says a contractor was shot while responding to a water outage complaint in December 2024, and that mafias deliberately set municipal vehicles on fire. Which factor most clearly places this violence at the criminal end of the range of conduct, rather than just the unethical end?
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The article states that poorer communities are afraid to report illegal activities because reporting can lead to deliberate service cuts or violent retaliation. Apply legitimacy theory to explain what this reveals about the municipality’s social contract with its residents.
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Apply the agency theory to the relationship between municipalities and water tanker mafias. Which answer correctly identifies the principals, the agents, the agency problem, and the governance mechanism that has failed?
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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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The article revealed that municipalities were awarding contracts to companies connected to mafias. In terms of municipal governance, which person within the municipality is the accounting officer primarily responsible for compliance with the MFMA, and what personal consequence does the MFMA create for failures in this role?
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The article says that water tanker mafias threaten South Africa’s “economic growth, investor confidence, and political stability”. According to the circular flow model, how does failing to deliver water services affect the broader economy?
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