Local government carries out important regulatory functions through enforcing government controls and restrictions on specific activities conducted by the public sector.
Within its jurisdiction of general competence, local government is multifunctional and regulates diverse activities.
These involve a wide and diverse spectrum of instruments, such as rule-making, approvals (permits, approvals, registrations, consents or licences); notifications, inspections, directions (order, direction or notices to control activities); imposition of penalties/fines, taking court proceedings to enforce regulations, seizing documents or goods or impound goods or animals; referrals of regulatory matters to state agencies; undertaking works without the consent of the owner or occupier of a premises/property; evicting persons from land or premises, levies and charges, etc.
Because of its role and impact, the integrity of regulatory functions becomes a matter of growing concern. The bigger the power of regulators to grant significant benefits, or impose restrictions or penalties, the higher the risk that local government will be exposed to various types of integrity violations. Increasing complexity adds to the risk levels, making it necessary to maintain an adequate risk management strategy.