a) i) Corporate Governance Problems in the Public Sector:

1. Lack of adherence to rule of law and due process: Public sector entities often fail to strictly follow the rule of law and due process, leading to corruption, inefficiency, and lack of accountability.
2. Ineffective boards: Many boards in the public sector are dominated by a single individual or a small group, resulting in a lack of independence and poor decision-making.
3. Conflict of interest: Public officials frequently face conflicts of interest, where personal gain may take precedence over public good, undermining trust and accountability.
4. Lack of internal and external scrutiny: Insufficient scrutiny from both internal auditors and external watchdogs leads to unchecked power and potential misuse of resources.
5. Lack of transparency.

ii) Principles of Corporate Governance:

1. Organizational structure and process: Effective corporate governance requires a clear organizational structure, including defined roles, responsibilities, communication channels, accountability, compliance, and controls. The board should include independent directors and have appropriate committees to oversee various functions.
2. Controls (risk management, audit, M&E): A robust system of risk management, internal control, and monitoring and evaluation is essential for identifying and mitigating risks, ensuring that resources are used efficiently and effectively.
3. External reporting: Transparent and timely reporting of financial and performance data is critical for accountability. The board should ensure that these reports are fair, balanced, and understandable to stakeholders.
4. Audit and accountability: An independent internal audit function and transparent relationships with external auditors ensure that public funds are used as intended, and that any discrepancies are identified and addressed promptly.
5. Responsibility (towards stakeholders, avoiding conflict of interest, etc)
   The board should be responsible for ensuring that an appropriate dialogue takes place
   among the organisation, its shareholders and other key stakeholders. The board
   should respect the interests of its shareholders and other key stakeholders within the
   context of its fundamental purpose.
6. Value for money
7. Rule of Law
8. Board Independence

b) Best Practices for PPP Arrangements:

1. Transparency and competition: Ensuring transparency and fostering competition in the procurement process are critical for maintaining public trust and ensuring that PPP arrangements deliver value for money.
2. Favorable legal framework: Establishing a comprehensive legal framework that governs PPP projects is essential for protecting the interests of both the public and private sectors. This framework should include clear guidelines on contract management, risk allocation, and dispute resolution.
3. Right project identification: Selecting projects that are technically, socially, and economically viable is crucial for the success of PPP arrangements. The project should align with national development goals and demonstrate clear benefits to the public.
4. Capacity building: Developing the skills and knowledge of public officials involved in PPP projects is vital for ensuring that these projects are managed effectively. This includes training on negotiation, contract management, and financial analysis.
5. Extensive stakeholder engagement
   External stakeholders play crucial role in the successful implementation of PPP
   projects. Essentially, stakeholders such as civil society groups, local communities, and
   trade unions should be engaged right from the beginning of the project. Local
   practitioners should desist from engaging external stakeholders at the later stage of
   the project development because it irritates the public and fuels the negative public
   perception on PPP transactions.
6. Appropriate risk allocation
   Proper risk identification and allocation cannot be undermined when practitioners
   want to achieve success. Risks must be properly identified and allocated to the best
   party. Essentially, contracting authorities should neither retain excessive risks nor
   transfer too many risks to investors. In fact, risk sharing must be balanced. It should
   not be a way of favoring one party since this can result in conflict at a later stage.
7. Local content and safeguard of consumers rights
8. Value for money