Posted by Chester Morton / Tuesday, 29 November 2016 / No comments
How Public Corporations are controlled
Definition of Public corporation
A Public Corporation is an entity that has been established
by an Act of Parliament with the sole aim of providing services to the public
at a reasonably priced rate. Some of these services include, but is not limited
to, water, electricity, postal and telecommunication, public broadcast.
CONTROL
Parliamentary Control
Public Corporations are established by Acts of Parliament and
therefore the corporations so established cannot step outside the parent act
that establishes them. In other words they cannot do things that the law
prohibits them from doing. That serves as a limiting factor for the
corporations.
Control by the Executive
Every Public Corporation is placed under a particular
ministry and the minister responsible for that ministry takes supervisory responsibility
for that corporation. The Boards of Directors are appointed by the Executive
and they can dissolve it. The minister has the power to appoint, promote,
transfer and dismiss. This serves as a check on the public corporations.
Financial Control
With the consultation of the Board of the Corporation, the
government can call for the auditing of the accounts of the corporation. They can
also establish a Commission of Inquiry to investigate any suspected malfeasance
in the operations of the Public Corporation.
Judicial Control
Another means by which the Public Corporations can be controlled
is through the powers of the Judiciary. An action of any Public Corporation
which violates the rights of an individual can be declared null and void by the
courts if it is brought before their attention.
Control by the public
The public can also serve as a form of control over the
activities of a Public Corporation. For example, the public can boycott their
products if it falls below the standard expected. On the other hand, if they
engage in activities inimical to the benefits of the people, a back lash from
the public can compel them to fall in line.
Quality control
There are statutory organizations set up to ensure that goods
meet a certain national minimum standard. The Food and Drugs Board is one.
Public Corporations can be whipped to conform to standards if they are not
doing so.
SAMPLE QUESTIONS
1. In which five ways are Public Corporations controlled? [15
marks]
