Local governments in South Africa have experienced leadership challenges in the democratic South Africa. Poor leadership ethics have badly contributed in the leadership challenges in the South African local government system. The objective of the study was to identify the factors that contribute in the poor leadership ethics in local government and the consequences of bad behavior by local government leadership and employees. Mixed research methodology was applied in the study. Primary data was collected through selfadministered questionnaires that were personally administered by the researchers to 10 portfolio managers, 333 Employees and interviewed 9 executive managers.The study found that the poor systems to fight against corruption and unethical activities compromise public service delivery and paint all public sector officials as corrupt people. The idea of getting into government institutions for the purposes of self-benefit is dominant amongst many people who are in government institutions.
