A report from the Audit Commission has highlighted the dangers of corporate governance failures in the public sector.

The public sector spending watchdog warned that such lapses could have "tragic consequences".

And trust in public services could be undermined by such failings, the commission warned.

The negative consequences of poor corporate governance are illustrated by the case of babies undergoing heart surgery at Bristol Royal Infirmary, the riots in Oldham during 2002 and the tragic Victoria Climbie case, according to the report.

It highlighted key concerns as the absence of leadership, poor decision making, lack of clarity in roles and responsibilities, poor working relationships and inadequate risk management strategies.

The watchdog found that performance management is weak across the local public sector, while financial risk is highest in the NHS as trusts work to meet the targets in the NHS Plan.

The quality of information for decision making needs to improve in all areas, but particularly in the NHS and the police, said the report.

And scrutiny needs to improve across the public sector with the role of non-executive directors and councillors needing to be enhanced to achieve this.

"It's crucial that public services give priority to good corporate governance," said Audit Commission chairman James Strachan.

"Weak corporate governance can lead directly to service failure, which in turn reduces trust in the public sector.

"Well-governed public services will both generate trust and provide services that meet users' needs."

Key recommendations from the report are that public organisations should regularly and pro-actively review their corporate governance arrangements and that regulators, auditors and inspectors should encourage public bodies to check that the information that they need for management and decision-making purposes is accurate.