A lot of this seems to happen due to something like:
1. Something goes wrong
2. "We need more procedure to ensure this never-ever happens again!"
Repeat over many years, and now everything is regulated to the microscopic detail, and no one really has the authority to do anything.
It's basically a special case of the "Politician's fallacy" – "this is terrible, we need to do something!", "this is something", "therefore, we need to do this".
In some cases all of that is of course the correct response, but in many others it's a little but more dubious, and in some it's outright misguided.
I think everyone would be better off if we'd be a bit more relaxed about "stuff goes wrong sometimes, and that's not always a big deal as long as we correct it". All the preventive measures come with a cost of their own.
All of this seems very deeply embedded. Politicians from all sorts of parties have been promising to "cut red tape" for as long as I remember, but it never really happens under any party. I think most politicians are genuine in their intent, but it's not easy to change the mentality of a society.