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Problems and Control of Public Corporations

Problems of Public Corporations

  1. Public corporations and parastatals in Nigeria suffer great political interference.
  2. Lack of skilled personnel due to poor working conditions.
  3. There is very high degree of corruption in public corporations and parastatals.
  4. Lukewarm attitude and inefficiency of workers.
  5. Favouritism in the appointment of staff.
  6. Red tapism, which is the excessive use of formalities.

Control of Public Corporations

1. Judicial Control or Court Order:

The court can declare an act made by a corporation illegal or unconstitutional. This is done when the corporation is breaching the Act upon which it was set up.

2. Auditing:

The accounts of public corporations are always audited by a body of auditors set up by legislature.

3. Approval of Loans and Expenditure:

The minister approves any loan to be taken and also the major expenditures.

4. Acts of Parliament:

The powers of the corporations are situated in the Acts passed by legislature.

5. Issuing of Directives:

The minister can equally issue directives on matter of any policy in a public corporation.

6. Ministerial Control:

A minister whose ministry controls a public corporation can appoint and dissolve the board of directors of such a corporation.

7. Abolition of Unproductive Corporations:

The legislature can abolish any unproductive or deficient corporation.

8. Summoning of Officials:

The legislature can ask any official to appear before it if there are allegations of wrongdoing.

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