Public accountability: The case of government guarantee scheme in PFI/PPP projects

Owolabi, Hakeem

Abstract

Although government guarantee scheme has become a well-known policy strategy for encouraging public-private infrastructure delivery. However, a huge concern with government guarantee in PFI/PPP is the issue of weak public accountability scrutiny. This study therefore investigates accountability mechanisms necessary for evaluating PFI/PPP government guarantee scheme within UK context. Using exploratory sequential mixed methodology approach, constructs from accountability theory (Process-Based Accountability Mechanisms, Ethics-Based Accountability Mechanisms, Democratic Accountability Mechanisms, and Outcome-Based Accountability Mechanisms) were examined. Sixteen (16) accountability mechanisms (value for money, parliamentary scrutiny, rule of law etc.) useful for evaluating PFI/PPP government guarantee scheme were identified and used to formulate theoretical hypotheses. Through literature review, documentation and case study interviews with experts in public and private sectors, 78 indicators contributing towards each accountability mechanism were uncovered. Confirming the relevance of each indicators from experts in the qualitative study, a final questionnaire survey was developed and distributed to wider audiences. Series of statistical tests were performed on the collected questionnaire data including Descriptive Mean Rating, Reliability Analysis, Mann Whitney U Test of Significant Differences in Perceptions and Structural Equation Modelling. The results revealed fourteen out of the sixteen tested hypotheses were validated, with two rejected (Benchmarking and Budgetary Reporting). Findings also identified the top-five accountability mechanisms critical for evaluating PFI/PPP government guarantee scheme comprising: Value for Money, Competition, Social and Political Impact, Risk Management, and Parliamentary Scrutiny. The study culminated in a multidimensional framework for public accountability in PFI/PPP government guarantee scheme. Contributing towards existing accountability theory, the study confirmed a combination of multiple accountabilities, as against a single-dimensional accountability, is necessary for strengthening public accountability in PFI/PPP government guarantee scheme. For UK policy formulators, the result suggested need for future re-dimensioning of accountability frameworks for infrastructure government guarantee schemes, especially as the nation faces new geo-political and economic complexities in years to come.

• Thesis Type: Thesis
• Publicly Available Date: Jun 7, 2019
• Keywords: PFI/PPP; Government Guarantee Scheme; Public Accountability
• Public URL: https://uwe-repository.worktribe.com/output/864191
• Award Date: Jul 25, 2018