Assessing asset management in the Nelson Mandela Metropolitan Municipality

Due to scarce financial resources, over-stretched budgets, pressures for service delivery and the dynamic nature of local government, asset management plays a key strategic role in enhancing local municipal functionality and efficiency. Asset management is the management of physical assets, infrastructure, and immoveable assets. It is an evolving discipline that is enhanced by the understanding of asset conditions and performance. It improves decision-making within local government. Every year, local government announces millions of Rands’ worth of assets that are unaccounted for and that go missing in annual reports. It was the purpose of this study to assess the asset management function at the Nelson Mandela Bay Municipality (NMBM). The aim is to improve the management of moveable assets by investigating the following variables: strategic management of assets, knowledge management, governance, leadership, the impact of corruption and skills management. The approach to the study is a qualitative research paradigm with a case study methodology and an interview as a research instrument. The sample chosen comprised people from the top level of municipal management down to municipal asset controllers. The two forms of data that were collected in the study were primary data and secondary data. Primary data was collected from municipal workers and collated together for analysis purposes. Secondary data was gathered from library sources such as journals, books, conference papers, government acts, municipal policies and local newspapers. This data informed the interview questions. The interview strategy was chosen as the best way to conduct the empirical part of this research and was guided by an interview guide. The study found that there are operational defects in the way asset management is organised. This makes the function seem unimportant. The results also indicated a lack of staff members and skills shortages; such as management and computer skills. Indications are that theft, negligence, corruption and carelessness negatively impact the management of assets. Recommendations include the filling of vacant posts, tightening of internal controls, providing the necessary training and improving the asset management. The study makes a contribution to the current body of knowledg