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This form of undertaking suffers from various restrictions, which are as follows:
  1. Actually, a statutory body enjoys less operational freedom and flexibility as stated above. All actions are subject to many rules and regulations;
  2. Government and political intervention has always been present in crucial evaluations or where large funds are concerned;
  3. Where public is involved, uncontrolled fraudulent activities exists;
  4. The government has a practice of employing advisors to the Corporation Board. This restricts the autonomy of the corporation from gaining access into contracts and other decisions. In maters of disagreement, the government is referred for final decisions. This delays further action.

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