No but oddly enough this is what legislators do all the time when they try to uses tax payer money for non-public proposes.
Almost inevitably they line the pockets of their friends. Indeed even when it is for ‘public proposes’ they almost invariably line the pockets of their friends. To the extent they have the ability they always appoint their friends and allies to positions of authority and patronage. Back when the Federal Government was Constitutional this uses to be what was done with the post office(the only major peace time federal agency) Now that post office is comparatively tiny to the army of others.
Given how much of the economy Washington has taken over under the control of politicians its a wonder we get any new people in politics.
The truth is privatization has nothing to do with this, as they were doing the same thing with even more success while it was a “public agency” at least now the private company has a chance of going out of business and thus leaving the political stage.