Strengthening Accountability in Public-Private Partnerships (PPPs): A Governance Perspective

Description

DOI: https://doi.org/10.5281/zenodo.21886547

Reginald Ndwamai¹, Nyatheli Tracy², Muenda Kingsley Mutshidza³, and Chiliya Norman⁴ (Department of Human Resource Management and Labour Relations, University of Venda, Thohoyandou, South Africa^1,2
Department of Business Management, University of Venda, Limpopo, South Africa^3,4)

Public-Private Partnership has emerged as an important form of organisation where the public sector functions in tandem with private sector capabilities for providing services. However, there exist major issues of accountability, even when the role played by PPPs becomes increasingly central to sectors that are usually controlled by public sector authorities. Since accountability is integral to good democratic governance, there arises a need to include the concept of accountability into the very fabric of PPP organisations. The present research examines PPP in terms of accountability in terms of three broad dimensions: hierarchical accountability which is based upon traditional bureaucratic structures and Principal-Agent theories, horizontal accountability which entails checks and balances between equal players, and accountability as virtue meaning that it relates to ethical conduct within PPP dealings. These three concepts of accountability will be examined in terms of theoretical understanding and empirical analysis for identifying the manner in which these accountabilities function or fail within PPP framework. For guiding methodology to achieve objectives of this research project, Principal-Agent Theory has been chosen. This theory provides a holistic picture of authority delegation, management, oversight and incentive alignments between public sector Principals and private sector Agents in PPPs.