That’s the difference between the public sector versus the private sector
The public sector doesn’t care about things like efficiency and competency
You're assuming we still have capitalism in which the bottom line and thus the profits for the owners are what drives corporate policty. We do not. James Burnham was early thinking it had arrived in 1949, but by now we certainly live under managerialism, in which it is not the capitalists, but the professional managers who are in charge. They don't care about efficiency and comptency whether they are in the public or private sector (and they rotate between the two). They care about what increases their agency's power when in the public sector and what increases their bonus when in the private. Meeting DEI targets or "carbon neutrality" targets are a whole lot easier than delivering value to the shareholders, and guess what, the managers can decide to key each others bonuses to those, rather than to share price or profits.