CORPORATE GOVERNANCE IN THE PUBLIC SECTOR

Presentation to
CPA – National Public Sector Conference

By Wayne Cameron,
Auditor-General of Victoria

19 November 2003

Governance framework

Partnerships and Community Consultation

“When individual ministers and departments stop ‘owning’ particular policy issues, when private sector firms … deliver services, when .. stakeholders exercise real power through participation on community-based management boards, and when governments share power with formal partners, the casual observer can be excused for asking, ‘who is in charge here?’”

The Senior Public Service

“One of the key governance effects of a quasi-market is to politicize the senior public service. Because ministers are precluded from having any direct role in the tender process, senior public servants become the principle ‘program champions’. It is their decisions that need to be defended publicly. As a result they lose any semblance of independence from the party political regime of the day.”

Extracts from: National Institute for Governance – New Players, Partners and Processes: A Public Sector without Boundaries?

Partnerships Arrangements

• Crossing of traditional boundaries

• Need to set the ground rules

• Influence of e-government

• Community consultation

Key Pre-requisites

• Clear roles and responsibilities

• Constructive relationships and accountabilities

• Effective governing body

• Effective monitoring

• Sound risk management practices

• Effective communication

• Good external reporting

Good Corporate Governance

Fundamental to achieving effective, efficient and economical outcomes.