Political Instability: As a result of frequent changes in government, there are also corresponding changes in the board of directors and officials and this does not encourage effectiveness and continuity in ere management of public corporations.

Frequent government interference: Government always interferes in the administration of public corporations and ibis results in poor performance of such corporations.

Lack of qualified personnel: Inefficient and unqualified personnel are always employed to work in public corporations because such appointments are based on political rather than technical consideration. read more on skilled labour here

Negative attitude of workers: Majority of the workers in public corporations have a negative attitude to work because they regard public corporation as no ­man’s job. Most of them will tell you that you “put government work on the shoulder and not on your head.”

High level of embezzlement: Public corporations are associated with high level of embezzlement on the part of board members who have to settle government officials that appointed them and this will eventually lead to financial bankruptcy of the corporation.

Favouritism in appointments: There is high level of favouritism in appointment of board of directors and this results in inefficiency in the administration of public corporations.

Political victimization: Most board of directors and other important officials in public corporations are sometimes victimized due to certain political reasons and this makes such corporations ineffective.

Practice of sectionalism and ethnicism: The practice whereby sectionalism and ethnicism are used to appoint board members and key officials to manage a public corporation normally leads to lawlessness and inefficiency.

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