Last week’s landmark judgement by the South African constitutional court, which found President Jacob Zuma’s responses to the Nkandla scandal to be unlawful, marks a significant victory for good governance. The Nkandla scandal, an issue that has lingered for nearly seven years, has been a subject of much public concern. The initial investigation by the public protector, followed by court cases brought by major opposition parties, has incurred millions of costs. Zuma’s attempts to defend his actions have only added to the financial burden.

The Cost of Good Governance

It is important to acknowledge that good governance comes with a price tag. However, the cost of failed governance can be even more detrimental. This ruling serves as a blow to President Zuma’s efforts to hold on to power and has restored some confidence in South Africa as a safe investment option. The positive market response was evident as the rand strengthened significantly against the dollar after the judgement was announced. The court’s decision sets clear boundaries and demonstrates that no one is above the law.

The Role of Data Governance

Amidst discussions about governance, it is natural to wonder about the cost of data governance. Properly implemented data governance serves three crucial functions:

1. Compliance and Ethics: Data governance defines policies and principles for the acceptable use of data and information, ensuring adherence to regulations such as Know Your Customer (KYC) and the Consumer Protection Act (CPA). Moreover, it also considers corporate ethics, establishing boundaries that businesses must not cross, even if the action is legally permissible, due to potential reputational risks outweighing benefits.
2. Optimized Resource Allocation: By identifying and prioritizing data projects based on business goals and priorities, data governance reduces wasteful IT spending while optimizing project delivery. Many businesses suffer financial losses due to poor data management practices, which could be mitigated through effective governance.
3. Delivering Value: As organizations increasingly differentiate themselves through advanced analytics, Customer Relationship Management, and other data-intensive programs, the value of good data becomes evident. Data governance defines the path to realizing this value and ensures the effectiveness of projects aimed at delivering it.

Addressing “Nkandla’s” in Your Business

Every business has its own set of challenges, which may manifest as “Nkandla’s”—massive overspending on specific projects, lack of understanding of new legislation implications, or struggling to cope with data complexity. Data governance plays a crucial role in managing complexity, identifying oversights, and aligning budgets with corporate priorities.

Data governance is an integral part of corporate governance, and it deserves the attention it demands.

Let Data Quality Lead the Way

Ensure that data integrity and quality are at the forefront of your enterprise’s information assets. Trustworthy data forms the foundation for successful decision-making and business growth.