It is becoming imperative to focus on corporate governance in the public sector in order to maintain faith in the system and promote better public service, complemented by transparent and controlled operations.
Although the private sector model of corporate governance, which tends to view shareholders as the main stakeholder group, requires some adaptation to fit the public sector; many of the underlying principles of good corporate governance would apply. In the public sector, specific user groups, those directly responsible for funding and the community at large, assume a greater importance as stakeholders.
However, the pivotal role of governing boards and issues of transparency and accountability are as relevant to the public sector as they are to the private sector. Stewardship and accountability for the use of funds and assets is particularly important in the public sector.
Therefore, good institutional governance should be instilled by the development of governance systems in ministries, agencies and authorities, with the aim of enhancing the quality of public services consistent with citizen expectations, promoting compliance and conformance with appropriate transparency and flexibility.
To be continued…