PRINCIPAL-AGENT TENSIONS AS A DRIVER OF INEFFICIENCY, MISMANAGEMENT, AND CORRUPTION: A COMPARATIVE ANALYSIS OF STATE-OWNED ENTERPRISES AND PRIVATELY-OWNED ENTERPRISES

abstract The main aim of this study is to highlight the principal-agent tensions that are associated with mismanagement, inefficiency and corruption in State-owned entities and Privately-owned entities (POE’s). The study is of the view that factors such as mismanagement, inefficiency and corruption are some of the key factors that leads of energy crisis in Nigeria and South Africa. Policy reforms in Nigeria and South Africa have been drafted and passed yet still the two states are still experiencing energy crisis. In addition, these issues of mismanagement, inefficiency and corruption are affecting both SOE’s and POE’s within their ability to discharge their services. With the employment of qualitative research methods, principal-agency theory and policy reforms in both SOE’s and POE’s. The study findings argues that political interference, racialised, othered energy poverty and private interests for self-enrichment in POEs as well as SOE’s are the centre of principal-agent tensions which leads to inefficiency of these institutions. Hence, it concludes that good governance, infrastructural development, and sustainable development (policy formulation and implementation) are key to attain stable energy supply in SOE’s and POE’s. Similarly, energy racism, infrastructure degradation, corruption and political intervention needs to be addressed to attained sustainable energy supply as per the SDG-7 goal of 2030. Keywords: Corruption, inefficiency, mismanagement, POE’s vs SOE’s, and policy reform.