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

Problems faced by Public Corporations

a.      Political Interference: frequent government or political interference into the administration of public corporation often result to ineffectiveness

b.     Ethnicity: ethnicity and sectionalism also slow down the effective performance public corporations.

c.      Lack of Qualified Personnel: the exodus of professionals to the private sector poses a challenge to the effectiveness of public corporations

d.     Favouratism: favouritism in the appointment of managers and members of board of directors also affect the performance of public corporations.

e.      Political Instability: political instability often leads to frequent change of government which in turn, give rise to irregular change of the officials of public corporations.

f.       Poor Working Condition: the working condition of public corporation is usually poor, and this scare away highly qualified personnel.

Solutions to the Problems faced by Public Corporations

a.      Non Political Interference: politicians should avoid interfering into the administration of public corporation in order to give room effectiveness

b.     Employment of Qualified Personnel: highly qualified and professionals should be employed and to be well catered for, to prevent them from moving to the private sector. This will improve the performance of public corporations.

c.      Appointment by Merit: the appointment of managers and members of board of directors should be by merit in order go improve the performance of public corporations.

d.     Political stability: there should be stable political system that will allow for effectiveness of public corporations.

e.      Creation of Good Working Condition: the working condition of public corporation should be improved in order to attract highly qualified personnel.

 

PUBLIC CORPORATIONS

Public corporation is a government establishment or enterprise set up by an Act of parliament to
provide essential services like electricity, postal services, pipe borne water etc. A public corporation is that form of public enterprise which is created as an autonomous unit, by a special Act of the Parliament or the State Legislature. Examples of public corporations are: Nigerian Communications Commission (NCC), Nigerian National Petroleum Corporation (NNPC), Nigerian Ports Authority (NPA), Nigerian Television Authority (NTA), Power Holding Company of Nigeria (PHCN), National Bureau of Statistics (NBS), National Teachers Institute (NTI), ...

 

Purpose for Establishing Public Corporations

1.      Provision of Essential Services: public corporations are set up mainly to provide essential services for the people. For instance, transport services, electricity supply etc.

 

2.      Huge capital Involvement: public corporations are to provide such services which cannot be provided by individuals due to huge capital needed. For instance, railway.

3.      To prevent Exploitation: public corporation help to prevent private individual from getting involved in from certain services which may result in exploitation of the people.

4.      Raising people’s Standard of Living: increase in productivity and constant supply of these essential services can improve the standard of living of the people.

5.      For Efficient Management and proper Control: government have the means and potentials to manage certain services better. This will create room for efficiency and regular supply of these essential services.

6.      Provision of Employment: another reason for setting up public corporation is to provide employment opportunities for the people.

7.      For Economic Growth: efficient and adequate provision of essential facilities can stimulate or generate investment for both local and foreign businesses

Features of Public Corporations

i.                    Owned by the Government: public corporations are owned and controlled by government, not private individuals.

ii.                  They are created by Special Act: public corporations are created by an Act of parliament.

iii.                They have Legal Standing: the corporations have legal standing, they are legal

entities that can sue and be sued.

iv.                They are Created for Essential services: they are mainly set up to provide essential services for the people.

v.                  They have Board of Directors: there are board of directors which direct the affairs of public corporations.

vi.                The Workers are Public Servants: workers in public corporations are referred to as public servants.

vii.              Not for Profit Making: profit making is not the main motive of establishing public corporations, but to render essential services to members of the public

Functions of Public Corporations

a.      Provision of Employment: another reason for setting up public corporation is to provide employment opportunities for the people.

b.      Provision of Essential Services: public corporations are set up mainly to provide essential services for the people. For instance, transport services, electricity supply etc.

c.       To prevent undue Exploitation: public corporation prevents a few individuals from exploiting the people, if they are allowed to provide such services.

d.      Revenue Generation: public corporations generate revenue for the government.

e.      Promote Economic Development: the setting up of different corporations enhances the prospect for economic development

 

Civil Service Commission

The civil service commission is a body independent of the civil service established by the government to administer the civil service. It is an office with members holding offices based on good behavior and is entrusted with the duty of recruiting, promoting and punishing civil servants. The commission is separated from partisan politics, and is made up of full time chairman, some full-time commissioners and some part-time commissioners.

The chairman of the Federal Civil Service Commission is appointed by the president, while that of each state is appointed by the governor. Members should be people of proven integrity and good education.

Functions of the Civil Service Commission

1. Recruitment: It recruits highly qualified personnel into the civil service, based upon good educational qualifications and performance in competitive, written examinations and interviews.
2. Promotion: The civil service commission promotes competent and productive senior civil servants from one grade to another.
3. Transfer: It can transfer civil servants from one department to the other.
4. Discipline: The commission has disciplinary powers, like suspension or dismissal of erring civil servants.
5. Retirement: It is vested with the power of retiring civil servants and advising in the payment of their pension entitlements and allowances.
6. Advice: It offers advice to the government on the appointment of suitable individuals to fill some sensitive positions in public corporations and parastatals
7. Dismissal: the commission has the power to dismiss erring civil servants found acting contrary to the rules and regulations of the service.

The Public Complaints Commission (Ombudsman)

Ombudsman is a government institution established to examine complaints of inefficient administration, corruption and unjustified treatment by some public officials against citizens.

Ombudsman is also known as public Complaints Commission. It was introduced in Sweden in 1809.Britain, Finland, Denmark New-Zealand, Norway etc. also have the institution. In Nigeria, it was established in October, 1975.

Functions/Importance of Ombudsman

1.      Investigation: To investigate cases of maladministration reported against any public officer

2.      Protection of Human Rights: it helps citizens whose rights are violated to seek redress instead of going to court.

3.      To ensure that public officers and public authorities discharge their duties in compliance with the laws of the land.

4.      Listen and look into the grievances of  aggrieved citizens

5.      To investigate cases of incompetence, false document and inconsistency of civil servant.

6.      It is empowered to investigate any act of corruption, nepotism or bias

7.      It also investigate undesirable conditions and practices in public places like the prisons, hospitals etc.

8.      It protects and maximizes the rights or liberties of citizens.

Limitations of the Powers of Ombudsman

a.      No Power to Enforce: the body can only investigate and make recommendations to the appropriate authority. It lacks the power to enforce decisions.

b.     It cannot Investigate the Activities of  Top Officials in government:  it can only be involved in matters affecting officers of lower grades, but not ministers, Governors, and Director-Generals

c.      No Power to question: the commission has no power to challenge or change decisions of the courts when administered.

d.     National Security: the need to preserve and safeguard state security and vital national interest acts as a limitation on Ombudsman’s access to information and documents.