By: Thelma Abbe
The Collusion Cartels: When Everyone Eats, Nobody Complains
Behind many PPP disasters is an invisible alliance — a cartel of public officials, private contractors, and politically connected middlemen. These groups ensure that contracts go to preferred bidders, oversight bodies stay quiet, and whistleblowers get sidelined.
In Nigeria, investigative journalists uncovered a ring of companies — all with different names but the same beneficial owners — winning multiple PPP contracts in health and transport. The game? Bid as separate entities to simulate competition, then split the profits in the back room.
In East Africa, a national toll road project was awarded to a joint venture between a local firm and a foreign company. The local firm? Owned by the brother-in-law of the minister overseeing the project. No open bidding. No transparency. Just smooth paperwork and big payouts.
In South America, several water PPPs were exposed where bidding companies created dummy competitors to meet the ‘three-bid minimum.’ All dummy firms were later traced back to the same directors. Billions were awarded with no competition.
And in francophone West Africa, telecom PPPs were awarded through fast-tracked procurement approvals after private dinners with officials. Later investigations showed public officials held shares in the winning firms.
Political Godfathers: The Untouchables Behind the Deals
Some PPPs never get questioned because they’re protected by political giants — former ministers, MPs, or business moguls with deep ties to power.
In West Africa, a stalled hospital PPP couldn’t be terminated even after three years of zero progress — because the lead contractor was a major political financier. Civil servants raised red flags. They were transferred.
In South Asia, a smart city PPP lost millions due to corruption and delays. Yet, the firm retained the contract. Why? The chairman was the Prime Minister’s campaign donor.
In the Middle East, a PPP in the oil sector granted export rights to a newly formed company with no experience. It turned out to be owned by relatives of the ruling family. When international watchdogs raised alarms, they were denied visas.
In East Africa, a fertilizer plant PPP failed to begin construction after four years. But the contractor kept receiving payments. A parliamentary probe discovered that a former President’s son was on the company board.
Phantom Returns: The Illusion of Economic Benefit
PPP promoters often wave around projections: thousands of jobs, millions in tax revenue, and economic transformation. But years later, reality looks very different.
In Southern Africa, a mining PPP promised 10,000 jobs and $500 million in annual exports. A decade later, only 400 jobs were created, and export volumes remain negligible. Yet, the private company received tax breaks, free land, and guaranteed power supply.
In the Caribbean, an airport expansion PPP projected a 200% rise in tourism. Post-construction audits revealed fewer flights, higher ticket fees, and increased government subsidies to keep it running. Phantom returns. Real expenses.
In Southeast Asia, a digital broadband PPP claimed it would connect 2 million rural homes. After $100 million spent, only 150,000 homes were connected — most in urban areas. Speeds were below target. Yet the government continued monthly milestone payments.
In Central Africa, a stadium PPP promoted as a catalyst for youth employment now sits mostly empty. The local team plays once a month, and vendors complain of no customers. Operating costs exceed revenue, but the government still pays an annual guarantee to the contractor.
When PPPs Fail Upward
In a twisted irony, the worse some PPPs perform, the more money gets thrown at them. Instead of penalties, they get bailouts. Instead of questions, they get extensions.
This happens because failed PPPs often become ‘too big to fail’ — politically toxic and financially risky to cancel. So governments double down, pouring good money after bad.
In South Asia, a railway modernization PPP ran three years behind schedule. The solution? A renegotiated contract with higher fees and more lenient delivery terms.
In East Africa, a failed e-tax PPP was supposed to be cancelled after poor performance. Instead, the vendor was re-engaged under a ‘new framework’ with nearly identical terms.
In Southern Europe, a prison PPP with overcrowding issues and poor service delivery was flagged by human rights observers. Instead of termination, it received increased operational funding and longer management rights.
What Must Change — Now
1. Blacklist repeat offenders: Companies and public officials involved in failed PPPs should be barred from future bids.
2. Real-time citizen oversight: Open data dashboards showing project budgets, timelines, and progress — in plain language.
3. Independent ombudsman: With power to investigate and freeze payments on questionable deals.
4. Whistleblower protection: Make it safe — and worthwhile — for insiders to report fraud.
5. Tie payments to performance: No outputs, no payments. Period.
6. Public review panels: For all major PPPs, establish a citizen and civil society review panel before contracts are finalized.
Final Word: PPPs or Plunder Per Person?
The promise of PPPs is progress. But without accountability, they become plunder.
When cartels, godfathers, and ghost numbers rule the system, the public loses — over and over again.
The question is no longer whether PPPs can work. It’s whether governments have the guts to make them work for the people.
Until then, PPP might as well stand for: Pay Politicians Permanently.
Author: Thelma Abbe
Email: abbe.thelma@jsmorlu.com
Thelma Abbe is a dynamic accounting professional with JS Morlu Ghana, where she delivers high-impact financial services to U.S. and international clients with precision and strategic insight. A graduate of Kwame Nkrumah University of Science and Technology and a current ACCA candidate, she combines academic excellence with real-world expertise.
With deep command of both U.S. GAAP and international accounting standards, Thelma manages complex IRS filings, financial reporting, and compliance for a global client base. Her ability to bridge multiple regulatory environments makes her a vital asset to cross-border businesses navigating today’s financial complexities.
She also plays a critical role as a subject matter expert and product tester for FinovatePro.com — an AI-powered, game-changing accounting platform built to transform financial management for small businesses around the world.
Driven by a passion for accountability, financial innovation, and governance, Thelma is a constant learner and avid reader of corporate finance literature. She stands at the forefront of a new generation of accountants — globally minded, tech-savvy, and purpose-driven. For professional inquiries, reach her at abbe.thelma@jsmorlu.com.