Problems of Public Corporations
- Public corporations and parastatals in Nigeria suffer great political interference.
- Lack of skilled personnel due to poor working conditions.
- There is very high degree of corruption in public corporations and parastatals.
- Lukewarm attitude and inefficiency of workers.
- Favouritism in the appointment of staff.
- 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.
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.