Accountability challenges in public–private partnerships from a South African perspective

Madeleine C. Fombad

Abstract


One of the potential benefits of public–private partnerships (PPPs) is its capacity to enhance account- ability. Although the South African government has made several efforts to address the need for fairness in service delivery and improve accountability in procurement, accountability remains a challenge in PPPs in South Africa and most other countries. If PPPs are to play their role in infrastructure development and service delivery, and thus serve public interests, the problem of accountability must be addressed. This paper attempts to identify some of the accountability challenges in PPPs, together with a literature review, to provide some future perspectives on PPPs in South Africa. 


Keywords


Accountability; democracy; developing economies; millennium development goals; public– private partnerships; service delivery; transparency

Full Text:

PDF

References


Aaronson, S. 2011. Limited partnership: Business, government, civil society, and the public in the extractive industries transparency initiative (eiti). Public Administration Development, 31, 25‐36.

Acar, M., Chao, G., and Kaifeng, Y. (2008). Accountability when hierarchical authority is absent: Views from public‐private partnership practitioners. American Review of Public Administration, 38, 271‐90.

Aiello, J. (2010). A treasury view on South Africa’s PPPprogramme. Presentation: Senior Project Advisor, PPP Unit, National Treasury. [Online] Available from: k.cput.ac.za/cgi/ viewcontent. cgi?filename=0andarticle=1024 [Last accessed on 16 March 2012].

Armistead, C. and Pettigrew, P. (2004). Effective partnerships: Building a sub regional network of reflective practitioners. International Journal of Public Sector Management, 17, 571‐85.

Armstrong, A. (2005). Integrity, transparency and accountabilityin public administration: Recent trends, regional and international developments and emerging issues. United Nations Economic and Social Affairs [Online]. Available from: http://unpan1.un.org/intradoc/ groups/public/documents/un/unpan020955.pdf [Last accessed on12 May 2012 ].

Batho Pele Handbook (2005). A service delivery improvement guide: Association for Public Administration and Management. [Online] Available from: http://www.dpsa.gov.za/documents/gics/bphb/BathoPeleHandbook. pd [Last accessed 11 June

.

Beh, L. (2010). Development and distortion of Malaysian public‐private partnership‐Patronage, privatized profit and pitfalls. Australian Journal of Public Administration, 69 (S1): S74‐84.

Behn, R. (2001). Rethinking democratic accountability. Washington, DC: Blagescu, M., de las Casas, L., and Lloyd, R. (2005). Pathways to accountability. The GAP Framework, One World Trust: London.

Blake, N. (2004). Pros and cons of public‐private partnerships. Australian Nursing Journal, 11, 15.

Bovaird, T. (2004). Public‐private partnerships: From contested concepts to prevalent practice. International Review of Administrative Science, 70, 200‐14.

Bovens, M. (2007). Analyzing and assessing accountability: A conceptual framework. European Journal of Law, 13, 447‐68.

Bovens, M. (2010). Two concepts of accountability: Accountability as a virtue and as a mechanism. West European Politics, 33 (5), 946‐96.

Bovens, M. and Schillemans, T. (2009a). Publiekeverantwoording: Begrippen, vormen en beoordelingskaders. In M.

Bovensand, T. Schillemans (Eds.). Handboek publiekeverantwoording, (pp. 19‐34), Den Haag: Lemma.

Brinkerhoff, D. and Brinkerhoff, J. (2011). Public‐private partnerships: Perspectives on purposes, publicness, and good governance. Public Administration and Development, 31, 2‐14.

Brinkerhoff, J. (2007). Partnership as a means to good governance: Toward an evaluation framework. In partnerships, governance and sustainable development: Reflections on theory and practice. In P. Glasbergen, F. Biermann, A. Mol (Eds.). Edward Elgar Publishers: Cheltenham, UK and Northampton, MA; 68‐89.

Broadbent, J. (2003b). The Private Finance initiative in the UK. Critical Perspectives on Accounting, 14, 23‐48.

Burger, P. (2004). The dedicated PPP unit of the South African National Treasury [Online] Available from: http://www.oecd.org/ dataoecd/50/54/37147218.pdf [Last accessed on 12 April 2012 ].

Campbell, N. (2011). Democratic alliance: Member of parliament. [Online] Available from: http://www.politicsweb.co.za/politicsweb/view/ politicsweb/en/page71619?oid=242040andsn=Marketingweb+deta il [Last accessed on 06 August 2011 ].

Chapman, R. (2000). Ethics in public service for the new millennium. Vermont: Chatham House.

Cheung, E., Albert, P. and Stephen, K. (2006). Enhancing value for money in public‐private partnership projects: Findings from a survey conducted in Hong Kong and Australia compared to findings from previous research in UK. Journal of Financial Management of Property and Construction, 14, 7‐20.

Clifton, C. and Duffield, C. (2006). Improved PFI/PPP service outcomes through the integration of alliance principles. International Journal of Project Management, 24, 573‐86.

CIPE. (2011). Center for International Private Enterprise. Tool kit combating corruption: A private sector approach. [Online]. Available from: http://www. cipe.org/sites/default/files/publication‐docs/Anti‐CorruptionToolkit0308. pdf [Last accessed in May 2012 ].

Corner, D. (2006). The United Kingdom Private Finance Initiative: The challenge of allocating risk. OECD Journal on Budgeting, 5, 37‐55.

Coulson, A. (2005). A plague on all your partnerships: Theory and practice in regeneration. International Journal of Public Sector Management, 18, 151‐63.

Creamer, T. (2011). Tighter tender rules issued in bid to combat fraud, boost transparency. Engineering News [Online]. Available from: http://m.engineeringnews.co.za/article/ tighter‐tender‐rules‐ issued‐in‐ bid‐to‐combat‐fraudboost‐transparency‐2011‐05‐31 [Last accessed on

July 2011].

Creamer, T. (2012). Future PPP model must balance public, private risk more equitably. Engineering News. [Online]. Available from: http:// www.engineeringnews.co.za// future‐ppp‐model‐must‐ balance‐ public‐private‐risk‐more‐ equitably‐2012‐05 [Last accessed on 04 May 2012].

Dach, W. (2010). Financial crises and South Africa’s PPP Unit: The demerger of regulatory and advisory roles, greater independence on Treasury. Presented at PPP Days by the Head of PPP Unit at Treasury, William Dachs.

Deleon, L. (1998). Accountability in a reinvented government. Public Administration, (76), 539‐58.

Deloitte and Touche Research. (2006). Closing the infrastructure gap: The role of public‐private partnerships. [Online]. Available from: http:// www.deloitte.com/assets/Dcom‐Shared% 20Assets/Documents/dtt_ps_ closinggap061307.pdf [Last accessed on 09 April 2012].

Demirag, I. and Khadaroo, I. (2011). Accountability and value for money: A theoretical framework for the relationship in public‐private partnerships. Journal of Management and Governance, (15), 271‐96.

Demirag, I., Dubnick M., and Khadaroo, M. (2004). A framework for examining accountability and value for money in the UK’s Private Finance Initiative. Journal of Corporate Citizenship (15), 63‐76.

Dowdle, M. (2006). Public accountability: Conceptual, historical, and epistemic mappings.In M. Dowdle, Public Accountability: Designs, Dilemmas and Experiences, 1‐26. Cambridge: Cambridge University Press.

Dropper, D. (2011). Toll fee bargaining isn’t over yet. August 18, page 6, Pretoria news.

Dubnick, M. and Justice, J.B. (2002). But can you trust them to be ethical? Paper presented to the 63rd annual conference of the American Society for Public Administration, March 23, Phoenix.

Dubnick, M. And Romzek, S.B. (1991). American public administration, politics and management of expectations. New York: Macmillan.

Dubnick, M. (1998). Clarifying accountability: An ethical theory framework. In Charles, S., Noel, P., and Bois, C.A. (Eds.). Public sector ethics: Finding and implementing values. Leichhardt, NSW, Australia: The Federation Press/Routledge.

Dubnick, M. (2003). Accountability and ethics: Reconsidering the relationships. International Journal of Organization Theory and Behavior, 6, 405‐41.

Dubnick, M. (2005). Accountability and the promise of performance: In search of the mechanisms. Public Performance and Management Review, 28, 376‐417.

Edward, P., Shaoul, S., and Arblaster, L. (2004). Evaluating the operations of public financial initiatives in roads and hospitals. London: The Association of Chartered Certified Accountants.

English, L.M. and Guthrie, J. (2003). Driving privately financed projects in Australia: What makes them tick? Accounting, Auditing and Accountability Journal, 16, 493‐511.

Farlam, P. (2005). The South African Institute of International Affairs: Nepad Policy Focus Series Working Together Assessing Public Private Partnerships in Africa. [Online]. Available from: http://www.oecd.org/ investment/investmentfordevelopment/34867724.pdf [Last accessed on 15 November 2012].

Flanagan, L. And Serrao, F. (2011). Gautrain hidden millions:, shock for the tax payer. 21 June, Pretoria: The Star Newspaper.

Flanagan, L. (2011). Democratic alliance fight for transparency in Gautrain’s costs. June 22, Pretoria: The Star Newspaper.

Flinders, M. (2005). The politics of public‐private partnerships. British Journal of Politics and International Relations, 7, 215‐39.

Flyvbjerg, B., Bruzelius, N., and Rothengatter, W. (2003). Megaprojects and risk: An anatomy of ambition. Cambridge, UK: Cambridge University Press.

Forrer, J., Kee, J.E., Newcomer, K.E., and Boyer, E. (2010). Public–private partnerships and the public accountability question. Public Administration Review, 70 (3), 475‐84. [Online]. Available from: http://unpan1.un.org/ intradoc/groups/public/documents/UN/UNPAN005172.pdf [Last accessed on 23 February 2013 ].

Froud, J. And Shaoul, J. (2001). Appraising and evaluating PFI for NHS hospitals. Financial Accountability and Management, 17 (3), 191‐297.

Fussell and Beresford. (2009). Public‐private partnerships: Understanding the Challenge. Centre for Civic Governance, Columbia, 2nd ed.. Available from: http://www.civicgovernance.ca/files/ uploads/columbiap3_eng_ v8‐webpdf.pdf [Last accessed on 03 June 2011].

Grimsey, D. and Lewis, M. (2002). Evaluating the risk of public‐private partnership for infrastructure projects. International Journal of Project Management, 20, 107‐18.

Grimsey, D. and Lewis, M. (2004). Public‐private partnership: The world wide revolution in infrastructure provision and project finance. Edward Elgar: Cheltenham.

Grimsey, D. and Lewis, M. (2005). Are public‐private partnerships value for money? Evaluating alternative approaches and comparing academic and practitioner views. Accounting Forum, 29, 345‐78.

Hanekom, S., Rowland, R., and Bain, E. (2004). Key aspects of public administration. Johannesburg: Southern Book Publishers Ltd.

Heald, D. and Lewis, M. (2003). Value for money test and accounting treatment in PFI schemes. Accounting Auditing and Accountability Journal, 16, 342‐71.

Heymans, C. and Schur, M. (1999). National and provincial PPPs: Issues of supervision and accountability. Development Southern Africa, 16 (4), 607‐22.

Hodge, G. and Coghill, K. (2007). Accountability in the privatized state. Governance, 20, 675‐702.

Hodge, G. and Greve, C. (2005). The challenge of public–private partnerships: Learning from International experience. (pp. 81‐94) UK: Edward Elgar, Cheltenham.

Institute of Policy Research. (2001). Building better partnerships: Executive summary [Online]. Available from: http://www.ippr.org/uploadedFiles/ flagshipprogrammes/BBP%20Exec%20TG%20Edit.pdf [Last accessed on 09 June 2011].

Jones, G. and Stewart, J. (2009). New development: Accountability in public private partnership. The case of local strategic partnerships. Public Money and Management, 29, 59‐64.

Johnston, J. And Gudergan, S. (2009). Ethical leadership in public‐private partnerships: Learning from an Australian great controversy: In J. Raffel, P. Leisink, and T. Middlebrook, (Eds.). Public Sector leadership: International challenges and perspectives, 276‐93.: US, Edward Elgar.

Johnston, J. and Kouzmin, A. (2010). Addressing governance accountability and performance monitoring issues in partnerships: Can Infrastructure Australia provide a strategic response? Public Administration Quarterly, 34, 513.

Kearns, K. (1994). The strategic management of accountability in Nonprofit organizations: An analytical framework. Public Administration Review, 54, 185‐92.

Kee, J. and Newcomer, E. (2008). Transforming public and nonprofit organizations: Stewardship for leading change. McLean: VA: Management Concepts.

Kelman, S. (2001). Discussion paper on procurement issues in South Africa that affect growth and development. Harvard University, JFK School of Government.[Online]. Available from: http://www.treasury.gov. za/publications/other/growth/06‐Procurement%20and%20BEE/01‐ [Last accessed on 12 November 2012].

Kolbila, C.J., Mills, R.M., and Zia, A. (2011). Accountability in governance networks: An assessment of public, private, and nonprofit emergency management practices following hurricane Katrina. Public Administration Review, 71, 210‐20.

Kroukamp, H. (2004). Public–privatepartnerships. Management Today, 20, 28‐9.

Levinsohn, D. and Reardon, D. (2006). Municipal PPP projects in South Africa: Obstacles and opportunities. PPP Quarterly. [Online]. Available from: http://www.ip3.org/municipal‐ppp‐projects‐in‐South‐ Africa‐ Obstacles‐and‐Opportunities.html [Last accessed on 09 March 2012].

Mail and Guardian. (2012). The Editorial: Massive secret payoffs greasing the Gautrain wheels. [Online]. Available from: http://mg.co.za/ article/2012‐05‐31‐first‐evidence‐of‐payoffs‐in‐contract‐for‐gautrain [Last accessed on 15 November 2012].

Mashaw, J. (2006). Accountability and institutional design: Some thoughts on the grammar of governance. In Public accountability: Designs dilemmas and experiences. In M.W. Dowdle, (Ed.). (pp. 115‐6), Cambridge: Cambridge University Press.

Mayston, D. (1999). The Private Finance Initiative in the National Health Service: An unhealthy development in new public management? Financial Accountability and Management, (15) 3, 4‐249.

Mitchell, D. (2007). Capacity development for partnerships in South Africa: Increasing service delivery through partnerships between private and public sector. Report on findings of needs assessment, Fakisandla Consulting. [Online]. Available from: http://www.iblf.org/./partnership/./3E0C 2C8D25C2451EBD648E97DC6C2906.ashx [Last accessed on 04 June 2012].

Mörth, U. (2007). Public and private partnerships as dilemmas between efficiency and democratic accountability: The case of Galileo. Journal of European Integration, 29, 601‐17.

Mulgan, R. (2000). Accountability: An ever‐expanding concept? Public Administration, 78, 555‐73.

Mulgan, R. (2003). Holding power to account. New York: Palgrave. Murray E. (2007). Public–private partnership in transportation: The case

of Washington State. Vilkalpa, 32, 53‐9.

National Audit Office. (2001). Managing the relationship to secure successful partnership in Public Finance Initiative projects. Report of Comptroller and Auditor General. HC 375 session 2001‐2002, London: The stationary office.

National Treasury. (2007). Public–Private Partnership Unit, National Treasury.

National Treasury. (2011). Department of National Treasury South Africa. [Online]. Available from: http://oag.treasury.gov.za/ Publications/10.%20Practice%20Notes/For%20fin%20 year%20 2011‐12/20110531%20Instruction%20Note%2032%20‐%20Enhancing %20Compliance%20Monitoring%20SCM.pdf [Last accessed on 09 May 2011].

National Treasury. (2011). Department of National Treasury South Africa. [Online]. Available from: http://www.treasury.gov.za/divisions/sf/ sc/PracticeNotes/default.aspx [Last accessed 2011 09 May May].

National Treasury. (2004). Public‐private Partnership Manual. National Treasury.

National Treasury. (2009). Public‐private Partnership Unit, National Treasury.

Nepad Policy Focus Series. (2005). Working together assessing public‐private partnership. In South African Institute of International Affairs (SAII’s), In P. Farlam, (Ed.). Nepad Governance Project. Pretoria: Funded by Royal Netherlands Embassy.

Newberry, S. and Pallot, J. (2003). Fiscal responsibility: Privileging public‐private partnership in New Zealand. Accounting, Auditing and Accountability Journal, 16, 467‐92.

Ngalwa, S. and Maphumulo, S. (2011). Madonsela fights back. July 10, page 1. Pretoria: Sunday Times.

Nova Scotia Cooperation Agreement. (1996). Strategic public‐private partnership guide to Nova Scotia Municipalities.[Online]. Available from: http://www.gov.ns.ca/snsmr/muns/fin/pdf‐ppp/[Last accessed on 18 June 2011].

OECD. (2007). Organization for Economic Cooperation and Development: Principles for private sector participation in infrastructure. [Online]. Available from: http://www.oecf.prg/dataoecd/41/33/38309896.pdf [Last accessed on 21 August 2011].

Osborne, S.P. (2000). Public‐private partnership. Theory and practice and International perspective. London: Routledge.

Parliamentary Communication Service. (2011). Business of parliament. [Online]. Available from: http://www.parliament.gov.za/live/ content.php?Item_ID=1595 [Last accessed on 21 August 2011].

Pollitt, M. (2005). Learning from UK Private Finance Initiative experience, (pp. 207‐30). In G. Hodge and C. Greve (Eds.). The challenge of public‐private partnerships. Cheltenham, UK: Edward Elgar.

Public Accounts Committee NSW Parliament. (2006). Inquiry into Public‐Private Partnerships Report No. 159.[Online]. Available from: http://www.parliamentnsw.gov.au/publicaccounts [Last accessed on 10 May 2011].

Public Accounts Committee Publications. (2011). Public Finance Initiative: Housing and hospitals. Fourteenth Report of Session 2010‐11. [Online]. Available from: http://www.publications.parliament.uk/pa/cm201011/ cmselect/cmpubacc/631/63102.htm [Accessed on 15 May 2011].

Public Finance Management Act No. 1 of 1999. [Online]. Available from: http://www.wrc.org.za/downloads/legislature/PFMA1‐99.pdf [Last accessed on 03 June 2011].

Public‐private Partnership Quarterly 11. (2003). Finance Minister serious about making public‐private partnership work. South Africa: Pretoria.

Public–private Partnership Manual. (2004). National Treasury. South Africa: Pretoria.

Public–private Partnership Manual. (2007). National Treasury. South Africa: Pretoria.

Public‐private Partnership Quarterly 10. (2003). Unpacking standardised public‐private partnership provisions., South Africa: Pretoria.

Reeves, E. (2011). The only game in town: Public–private partnership. The Economic and Social Review, 42, 95‐111.

Rein, M. and Stott, L. (2009). Working together: Critical perspectives on six cross‐sector partnerships in Africa. Journal of Business Ethics, (90), 79‐89.

Robert, A. 2002. Closing the window: Public service restructuring and the weakening of public of freedom of information law.

Salem Papers. [Online]. Available from: http://www.inpuma.net [Last accessed on 28 April 2011].

Robertson, J. (2008). Chief Economist and Director, National Audit Office. Personal interview, London, June 26.

Robinson, H. and Scott, J. (2009). Service delivery and performance monitoring in Public Finance Initiative/Public‐private partnership projects. Construction Management and Economics, 27, 181‐97.

Romzek, B. and Dubnick, M. (1987). Accountability in the public sector: Lessons from the Challenger tragedy. Public Administration Review, 47, 227‐38.

Schillemans, T. (2008). Accountability in the shadow of hierarchy: The horizontal accountability of agencies. Public Organization Review, 8, 175‐94.

Sciulli, N. (2010). Building a framework for public‐private partnership research. International Review of Business Research Papers, 6, 367‐81.

Scott, C. (2000). Accountability in the Regulatory State. Journal of Law and Society, 27, 38‐60.

Scott, C. (2006). Spontaneous accountability: Public accountability designs dilemma and experiences, by M. W. Dowdle, (pp. 174‐94), Cambridge: University Press.

Sedisa, K. (2008). Public‐private partnership in the provision of secondary education in Gaborone city area of Botswana. Doctor of Public Administration at the University of South Africa, Unpublished thesis.

Siddiquee, N. (2011). Rhetoric and reality of public–private partnerships: Learning points from the Australian experience. Asian Journal of Political Science, 19, 129‐48.

Sinclair, A. (1995). The chameleon of accountability: Forms and discourses. Accounting, Organisations and Society, 20, 219‐37.

State of the Public Service Report. (2005). Bracing the public service for sustained, effective service delivery based on BathoPele. Commission House, Arcadia: The Government Printer, South Africa.

Stephen, J. (2005). Fears Gautrain will be a large, expensive white elephant. November 9, Johannesburg: The Star.

Stewart, J. (1984). The role of information in public accountability: In A.G. Hopwood and C.R. Tomkins (Eds.). Issues in Public Sector Accounting. Oxford: UK: Philip Allan.

Stone, B. (1995). Administrative accountability in Westminster democracies: Towards a new conceptual framework. Governance, (8) 1, 505‐26.

Swart, W. (2011). Gautrain security firm directors quit. August 21, Pretoria: Sunday Times.

Tati, G. (2005). Public‐private partnership (PPP) and water‐supply provision in urban Africa:The experience of Congo‐Brazzaville. Development in Practice, (15)316–324.

TD Economic Special Report Bank Financial Group. (2006). Creating the winning conditions for public‐private partnerships (P3s) in Canada. [Online]. Available from: http://www.td.com/economics/special/ db0606_p3s.pdf [Last accessed on 2011 12 June June].

Tennyson, R. (2003). The partnering toolbox. London: International Business Leaders Forum.

The Constitution of the Republic of South Africa, Act 108 of 1996. [Online]. Available from: http://www.acts.co.za/ constitution‐of‐the‐republic‐of‐south‐africa‐act‐1996// [Last accessed on 21 August 2011].

The Sun. (2009). PAC to Summon Ex Ministers. 2 July, Editorial.

Thomson, S. (2005). Investment for African development: Making it happen NEPAD/OECD investment initiative. Imperial Resort Beach Hotel Kama Hal, Entebbe, Uganda. [Online]. Available from: http://www.oecd.org/ dataoecd/29/45/34843203.pdf [Last accessed on 06 April 2012].

Treasury Regulation 16. (2004). Public‐private partnerships. Issued in terms of the Public Finance Management Act, 1999, 16 January, Gazette No. 25915.

UNDP. (2004). United Nation Development Program. Anti corruption Practice Note [Online]. Available from: http://www.uneca.org/itca/ governance/Documents/Anti%20Corruption%20Note%20FINAL%20 VERSION%20031704.pdf [Last accessed on 12 November 2012].

UNECHE. (2008). United Nations Economic Commission for Europe: Guidebook on promoting good governance in public‐private partnership. Geneva: United Nations University Press.

UNMP. (2005). United Nations Millennium Project: Investigating report. Practical plan to achieve millennium development goals. [Online]. Available from: http://www.unmillenniumproject.org [Last accessed on 29 August 2011].

Van der Merwe, J. (2007). Project Leader, Gautrain Management Agency. Gauteng Provincial Government. [Online]. Available from: http://www.saicerailwayandharbour.co.za/symposium2007/14. Jack%20van%20der%20Merwe.pdf [Last accessed on 15 August 2011].

Venter, I. (2011). Transport society voices support for user‐pays principle. Engineering News. [Online]. Available from: http://www. engineeringnews.co.za/article/transport‐society‐voices‐ support‐for‐ user‐pay‐principle‐2011‐07‐08 R [Last accessed on 30 August 2011].

Walker, R.G. (2003). Public–private partnership: Form over substance. Australian Accounting Review, 13, 55‐9.

West, E. (2003). First R and won’t duck. Maharaj Report. August 1, Business Report.

Wetterberg, A. (2011). Public–private partnership in labor standards governance: Better factories Cambodia. Public Administration and Development, 31 (1), 64‐73.

Willems, T. and Dooren, W. (2011). Lost in diffusion? How collaborative arrangements lead to accountability. International Review of Administrative Law, 77, 505‐30.




DOI: https://doi.org/10.15249/7-1-33

Refbacks

  • There are currently no refbacks.



ISSN 0976-3600 (on-line) ; ISSN 1817-7417 (print)


Powered by OJS and hosted by Stellenbosch University Library and Information Service since 2014.


Disclaimer:

This journal is hosted by the SU LIS on request of the journal owner/editor. The SU LIS takes no responsibility for the content published within this journal, and disclaim all liability arising out of the use of or inability to use the information contained herein. We assume no responsibility, and shall not be liable for any breaches of agreement with other publishers/hosts.

SUNJournals Help