Control of Public Corporations

It is important that public corporations are controlled. They are set up with public funds and they provide services to the general public. The Acts that set them up, contain some forms of control but their activities can also be controlled by the Legislature, Minister, JudiciaryThe judicial branch of government refers to a country’s court system. Judiciaries are responsible for interpreting and applying a country’s laws in particular cases, and can also be invested with the... More, and the Public Legislature Control.

• Public Corporations are set up by Acts of Parliament. These acts stipulate their powers, scope, and limitations. Any excess in its exercise of power can be challenged in court and be declared null and void.

• Secondly, the legislature can amend, modify or revoke the Act if necessary.

• Thirdly, the legislature can, through legislativeThe legislative branch of government is responsible for making laws within a country. Legislatures are made up of people called legislators who, in democracies, are elected by the country’s population More debate, influence the policies of Public Corporations.

• Fourthly, It can invite the supervising Minister and the Management of an Enterprise for questioning in the parliament. It can set up a committee on Public Corporations which can consider reports and audited accounts of Public Corporations.

Ministerial Control:

The Minister exercises enormous control over the public corporation among which is the power to appoint and dismiss members of the board of directors.

Secondly, the Minister gives broad policy guidelines to the board.

Thirdly, the Minister approves auditors to audit the annual accounts of enterprises as well as any borrowing of the corporation.

The Minister can withhold the subvention of a corporation for poor performance or even approval of some of its projects as a form of control.

The Minister presents the annual account together with its audited report in the legislature.

Judicial Control:

The court can declare the activities of public corporations null and void or unconstitutional if there is a breach of power that sets it up. It can issue sanctions on them as well as grant injunctions to prevent possible infringement on people’s rights.

Public Control:

The public and organized interests help to control enterprises. They can write petitions, and carry out demonstrations to force them to carry out their duties effectively.

Press Control:

The press can exert some form of control by exposing cases of corruption and ineffective management of such enterprises.