(a) What is a Public Corporation? (b) Identify four ways in which Public corporations are controlled.

Answer Details

(a) Meaning of a Public Corporation

A public corporation is a state-owned enterprise established by an Act of parliament (or a decree/edict) to provide essential goods and services to the public, usually on behalf of the government. It is a body corporate with a legal personality of its own, able to sue and be sued, own property and enter into contracts. Examples include the national electricity, railway and broadcasting corporations.

(b) Ways in which public corporations are controlled

1. Legislative control: The legislature that created the corporation supervises it by debating its activities, reviewing its reports and approving its budget.
2. Ministerial/executive control: The supervising minister gives policy directives, appoints board members and the chief executive, and oversees the general running of the corporation.
3. Financial/audit control: The accounts are audited by the Auditor-General and examined by public accounts committees to ensure proper use of funds.
4. Judicial control: The courts check the corporation to ensure it acts within the powers conferred on it by law and does not exceed its authority (ultra vires).
5. Public opinion control: Complaints from the public, the press and consumer bodies compel the corporation to render efficient service.