The big problem is, that Govt assets are nearly always sold at below market prices to "mates in the know", who promptly turn them over for a massive profit. And the Govt then takes the money they got from the assets and pisses it up against the wall on vastly overpriced, often under-utilised, and generally vastly problematic, Defence purchases. Just look at the exorbitant and ever-increasing pricing of the MD F-35 fighter as an example.
I employed a young Scottish bloke many years ago, who had worked for Marconi in the U.K. He said the rip-off profits staggered him when he sighted the figures.
Marconi were supplying radar and navigation aids to the IAF in the late '60's, and he said, typically, a small electrical component that cost Marconi something like £14, was billed out to the IAF at a figure around £1,000!