One of my life maxims is that government, by its very nature, is fundamentally incapable of competence. And it certainly applies here.
That is perhaps a bit of a one sided view into this issue. Common among some folks out there, very common in US for instance.
But the problem is that many organisations have issues, from wrong incentives to lack of focus on right things such as politics over substance. Yet, many if not most organisations do quite well, others do more poorly. Even big corporations have failed spectacularly when they were went along the wrong path. And many government organisations do their job very, very well. I know many regulators and government / society employees who doing exactly what they should be doing and do it well, being experts and leaders in their field. Aviation administrations, accident investigators, health care professionals, etc. come to mind as excellent examples. In the nordic countries, for instance, the civil service system and agencies are generally quite capable. Yes, the top person may be a political appointee, but the organisations otherwise are run as focused on their task, and staffed with the right type of people.
Of course, there are exceptions. Generally, too much insulation from realities, income money flows and their tie-in to end-user satisfaction can lead to problems. That's not only a government problem, it happens in many private enterprises as well.
I'm always wary when people push a particular approach (e.g, commercial or government-run) as the only solution. Energy companies sold to private enterprises and then turned into local monopolies is one local example that I'm paying dearly for every month
The reality is that a far better model would be that someone keeps tabs on what's going on, manages the organisation well, keeps them up to their promises. You can fail to do that for private enterprises just as well as government agencies.
(And in different parts of the world there are more specific issues, e.g., extreme pay differences between government and private world tends to lead to issues, for instance.)