The Economic Freedom Fighters (EFF) has accused President Cyril Ramaphosa of being dishonest regarding the party's proposed Insourcing Bill. In March, Ramaphosa agreed that insourcing workers would protect jobs and improve state capacity during a parliamentary question and answer session. However, despite continued briefings and parliamentary deliberations, the bill remains stalled due to sharp fiscal disagreements. The EFF claims that Ramaphosa's administration has not mandated a fiscal reallocation strategy from corrupt procurement budgets to permanent salary lines.
The proposed Insourcing Bill aims to compel government organs, departments, and municipalities to directly employ workers for ongoing essential services instead of using private third-party contractors. The bill was introduced to the National Assembly on July 31, 2025, by the EFF's Treasurer-General and MP Omphile Maotwe. The bill comes at a critical time as South Africa faces intense economic pressures, marked by an unemployment rate of 33.6% and a heavy reliance on third-party consultants and private contractors.
The National Treasury and the Department of Public Service and Administration (DPSA) have argued that mandatory insourcing is financially unachievable and too expensive for the current fiscus. However, the EFF and federation union Cosatu have expressed support for the bill, citing the need to protect workers' rights and enhance service delivery. Cosatu previously endorsed the bill, marking a pivotal moment in South Africa's fight against outsourcing.
The state is struggling with systemic tenderpreneurship and procurement-related corruption, with estimates showing that over 50% of the state's annual procurement budget has been lost to intentional system abuse. Acting chief procurement officer at the National Treasury, Willie Mathebula, said South Africa loses billions of rands annually to procurement fraud. The Special Investigating Unit (SIU) identified R7.8 billion in irregular, unlawful, or fraudulent contracts linked directly to Covid-19 procurement.
The SIU investigation revealed that 62% of contracts were irregular, and separate investigations into the Temporary Employer/Employee Relief Scheme (TERS) exposed millions of rands mismanaged or stolen. The EFF said redirecting these funds could help build a proper public healthcare system. The party added that the bill will ensure that workers are paid directly and on time, following incidents at Chris Hani District Municipality, Tembisa Hospital, and Ekurhuleni.
Governance expert and political analyst Professor Andre Duvenhage said the government should not outsource or insource capacity, adding that state structures should be empowered and equipped to do the job. Another governance expert, Sandile Swana, argues that the main issue with government services in South Africa is not whether they are outsourced or handled internally, but rather that the state's procurement system has been hijacked by politically connected criminal networks.
The EFF's accusations against Ramaphosa come as the party continues to push for the implementation of the Insourcing Bill. The party claims that Ramaphosa's administration has failed to act on the bill, despite its potential to protect jobs and enhance state capacity. The bill's implementation is seen as a critical step towards addressing South Africa's economic challenges and corruption.
Key points
- The EFF has accused President Cyril Ramaphosa of dishonesty over the proposed Insourcing Bill.
- The proposed Insourcing Bill aims to compel government organs to directly employ workers for essential services.
- The bill's implementation is seen as a critical step towards addressing South Africa's economic challenges and corruption.
