Asset mismanagement in public institutions is a pervasive challenge that undermines fiscal sustainability, service delivery, and public trust. Financial losses, reputational damage, and reduced institutional credibility have been documented across both developing and developed contexts. High-profile cases, such as sovereign fund scandals, misuse of government financial systems, and administrative incompetence in public institutions, demonstrate the scale and universality of the problem. This conceptual paper argues that, beyond technical shortcomings, weak human resource (HR) governance, including opaque recruitment, inadequate integrity training, and limited leadership development, creates vulnerabilities that enable asset misuse. This conceptual study draws on Agency Theory and Resource-Based View (RBV) to propose a framework linking HR governance to reduced risks of asset mismanagement. Agency Theory highlights the importance of monitoring and accountability mechanisms to mitigate opportunism, while RBV emphasises human capital as a strategic resource that, when developed, strengthens institutional resilience and stewardship. The paper concludes that effective HR governance requires integrating oversight mechanisms with capacity-building strategies. By positioning HR as a strategic actor in governance, institutions can foster accountability, enhance stewardship values, and build sustainable systems for asset protection. Implications for policy, practice, and future research are discussed to guide reforms and strengthen institutional accountability.
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