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EFF presses Ramaphosa on government insourcing

IOL ·
EFF presses Ramaphosa on government insourcing

The EFF has accused President Cyril Ramaphosa of dishonesty and pretending to support the proposed Insourcing Bill.

The EFF has accused President Cyril Ramaphosa of being dishonest regarding the party’s proposed Insourcing Bill.

This comes after Ramaphosa in March agreed that insourcing workers would protect jobs and improve state capacity during a parliamentary question and answer session.

The proposed Bill aims to compel government organs, departments and municipalities to directly employ workers for ongoing essential services instead of using private third-party contractors.

During the parliamentary session, Ramaphosa agreed that excessive outsourcing and middlemen waste public funds and foster corruption.

However, despite continued briefings and parliamentary deliberations with the Presidency, National Treasury, and the Department of Public Service and Administration (DPSA), the bill remained stalled due to sharp fiscal disagreements.

This is after both the National Treasury and DPSA argued that mandatory insourcing is financially unachievable and too expensive for the current fiscus.

Meanwhile, federation union Cosatu previously expressed support for the Bill to directly employ workers for routine government services.

“President Cyril Ramaphosa lied and pretended to support the proposal by President and Commander-in-Chief Julius Malema, calling on him to support the EFF’s Insourcing Bills,” EFF posted on X.

“Where is insourcing after conceding that insourcing will enhance state capacity and protect jobs?” the party added.

Asked why Ramaphosa’s administration has not mandated a fiscal reallocation strategy from corrupt procurement budgets to permanent salary lines, Presidency spokesperson Vincent Magwenya did not respond by the time of this publication.

The EFF’s Treasurer-General and MP Omphile Maotwe introduced the Bill to the National Assembly on July 31, 2025, (with initial notices and public comment processes dating back to late 2022 and draft submissions leading up to its formal 2025 tabling).

The proposed bill comes at a critical time as South Africa faces intense economic pressures, marked by an unemployment rate of 33,6% alongside a heavy reliance on third-party consultants and private contractors despite a large public service sector.

The state is struggling with systemic tenderpreneurship and procurement related corruption.

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