The effect of privatisation on political and managerial accountability

Abstract

The study seeks to assess the effect of privatisation on political and managerial accountability, considering the cases of Intercity State Transport Company and GAFCO. A sample data were collected from both managerial staff and some junior employees through interviews and questionnaire. Paired sample test was used to analyse the data of the questionnaire and content analysis for the interviews. The results indicated that privatisation decreases political accountability and increases managerial accountability. It was recommended that privatisation transaction should encourage a wide share ownership; widely disposed ownership makes the companies less vulnerable to cash traps. Also shareholders should invest in companies introducing training programmes for staff to improve their skills. The shareholders should be interested in the efficiency, effectiveness and maximum performance of the companies.