Government policy and private sector

The Government tendered the land for Executive Condo development to the private sector, because they do not want to deal with the demands of the citizens. They prefer to let the private sector deal with the conflicting demands. This does not seem to work, because the problem does come back to the Government in another form. Read this:
http://www.todayonline.com/Singapore/EDC121123-0000123/Khaw-reminds-developers-to-exercise-flexibility-within-spirit-of-EC-policy

I prefer the Government to deal with the policy issues directly, rather than pass these issues to the private sector. This approach seems to produce quite conflicting results.