Honest and competent civil servants are one of the most precious resource in any government, and even more in poor countries.
Hence it is important to economies on their use.
Eg instead of having court appointed bankruptcy proceedings that tie up the time of a judge, just liquidate.
In general, you want to arrange government procedures to be simple and quick to carry out, and with not much subjective judgement requirement, because that requires competence and provides nooks and crannies to hide corruption in.
Pulling back the responsibilities of government and lettings markets handle more, is a good way to assist with this effort.
(Another example: when you privatise a government owned company or department, you should pay off its debts and auction it off to the highest bidder. Government officials should not be used to judge a beauty contest of business plans for the new entity. Those plans never work out as advertised anyway.
In an account sense, paying off the debts first doesn't make a difference: a company with 1 dollar more debt on the balance sheet should just sell for an additional dollar more.
But in practice, asset stripping is much easier done with highly leveraged companies, and politically it's hard to keep the government from (implicitly) backing the debt.)
Government agencies often don't have a profit motive, but some pricks are still getting rich from the corruption.