Despite it popularity in the private sector, corporate governance
has had little traction in the public sector. This study explores
the successes and failures of corporate governance as a means of
filling the accountability and control gap in Departments of State
in the Australian public service. As with other Western
democracies, the introduction into Australia of public service
reform marked a substantial shift away from the traditional
process-based public sector model to a model that increasingly
emulated the private sector. These reforms, however, failed to
address directly the changes needed in accountability and control
in the public service. Corporate governance exists in both private
and public sectors as a dichotomy of formal and informal elements,
and the informal elements play a paramount role in achieving proper
results for government. The Australian immigration department is
used to demonstrate that even an organisation with a proud
international record in assisting the most vulnerable in the world,
can fail if its corporate governance mechanisms are not universally
and correctly applied, resulting in outcomes described by an
independent inquiry as 'catastrophic'.
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