This study explores the intersection of accountability and interagency collaboration within decentralized governance systems, focusing on the delivery of public services in Guyana’s hinterland communities. Traditional accountability models face multiple challenges in multi-actor collaborations and highlight the need for a shift towards “thick accountability,” emphasizing transparency, stakeholder engagement, and mutual trust. Using qualitative analysis of secondary data, the Mahdia dormitory fire (2023) is used as a case to assess coordination among government agencies and Indigenous stakeholders. A trend analysis (2014–2024) was conducted to evaluate funding patterns for hinterland communities. Theoretical frameworks on collaboration and social accountability were applied to assess their efficacy when applied to decentralized services. The study finds that despite increased funding, weak interagency collaboration, poor accountability, and leadership deficiencies hinder effective service delivery in Hinterland communities that already face socio-economic constraints. Indigenous leaders often lack the capacity for oversight. Spending on infrastructure outweigh human development investments, leaving healthcare and education underfunded. Concomitantly, decentralized governance faces resource mismanagement and leadership gaps, with local leaders caught in a prioritizing dilemma when impacted by emergencies. This study recommends balancing infrastructure and human development investments, improving interagency collaboration, strengthening fire safety regulations, and enhancing leadership training and advocacy.