That government pressure to change is perennial. It will always be there in one direction or another. One of the most important roles of senior staff in any such organisation is to handle that pressure.
Ultimately organisations are severely damaged not solely by pressure from above, as bad as that is, but by the opportunistic reactions from people looking to cash in on the situation. "Ooh, pick me! I've got no integrity at all and have no clue what this department technically does, but I'll fuck anybody over if there's something in it for me." What you get out of these privatisations is a perfect storm, a combination of externally catalysed and incoherent policy change, arsehole me-first management and slimy consultancy. Result: loss of decades of expertise, plus the enrichment of a large number of functionally irrelevant suits who probably have the phrase 'change management' on their linked-in profiles.
So while it's entirely reasonable to blame the asshats in government, also take the time to note the complicity of asshats in management. The government couldn't fuck up things up so badly if it couldn't count on a legion of supremely self-interested fifth-columnists.