Accountability in Local Public Utilities. Not Only Corporate Governance

ABSTRACT

This study questions the accountability relationship between one Municipality and its different Local Public Utilities (LPUs). On the basis of a case study built on documental analysis and on 21 in-depth interviews with key public officials, top managers and policymakers, a less scholastic view of accountability is proposed based on the consideration of different accountability mechanisms. The case study confirms that corporate governance, albeit central, is only one of the mechanisms available to the municipality to make the LPUs accountable. The dependence on the financial resources and the political salience of the specific public service emerge as factors impacting on the intensity of the accountability relationship.

KEYWORDS:

• Local public utilities
• hybrid organization
• accountability
• corporate governance
• political salience
• resource dependence