The Insourcing Bill 2025 – End the Middleman. Protect Workers. Save Public Money

The EFF's Insourcing Bill 2025 is a transformative law that will bring essential government services back in-house — ending decades of corruption through outsourcing, stopping the exploitation of workers, and ensuring every rand of public money serves the people of South Africa.

Background

A Law That Works For Workers

Since 1994, South Africa's government has outsourced essential services to private companies. The result? Inflated contracts, rampant corruption, and millions of workers exploited with no benefits, no job security, and wages that are a fraction of what government actually pays.

The Insourcing Bill, 2025 — introduced by EFF Treasurer General Omphile Maotwe, MP — provides a comprehensive legislative framework requiring organs of state to bring these services back in-house, using their own employees, under proper oversight and accountability.

Security Cleaning Catering Transport IT Services Healthcare Administration Gardening Maintenance Auditing
"The presentation of the Insourcing Bill to Parliament marks the formal engagement of a Bill that seeks to fundamentally restructure how the state procures and delivers essential services on a continuous and long-term basis."

— EFF Statement, 4 March 2026

Bill Reference

Insourcing Bill [B 19—2025] · Introduced as a Section 76 Bill · Presented to the Portfolio Committee on Public Service and Administration · ISBN 978-1-4850-1034-0

Where Your Money Is Going

Government departments pay outsourcing companies top rates — but workers see a fraction of it. The rest disappears into contractor profits. Here's what the numbers reveal.

R16 500
Paid per security guard
per month by government
To outsourcing contractor
R4 500
What the worker
actually takes home
Often without benefits
R11 000
Disappears per worker
per month
Into contractor profits
R65.9M
Per month in provident fund
contributions withheld
KwaZulu-Natal, May 2025
R15.5M
Per month in medical scheme
deductions not paid over
KwaZulu-Natal, May 2025
41
Security companies exposed
for defrauding workers
KwaZulu-Natal unions, 2025
The Pattern is Clear In May 2025, unions in KwaZulu-Natal alone exposed 41 security companies that deducted worker benefits — medical scheme contributions, provident fund payments, and UIF — but never paid them over. Workers lost healthcare, pensions, and legal protections. Meanwhile, these same companies continued to milk the government purse unchecked.

“The Economic Freedom Fighters (EFF) welcomes the formal introduction of the Insourcing Bill by the EFF in the National Assembly as a Private Member’s Bill, tabled by the Treasurer General, Commissar Omphile Maotwe. The purpose of this Bill is to compel the state, across all levels and entities, to insource essential and regularly required services.”

This Is What Outsourcing Looks Like

These are not isolated events. They are the predictable outcome of a broken system — a system the Insourcing Bill is designed to fix.

Feb 2026
Chris Hani District Municipality — Eastern Cape

Security guards and cleaners stormed municipal offices after being left unpaid for months — despite the municipality having an outsourced contract with a private company in place. Government paid. Workers went without.

Jul 2025
Tembisa Hospital — Gauteng

Security guards downed tools after two months without pay, leaving staff and patients at risk at one of Gauteng's busiest hospitals. Lives were endangered because a contractor pocketed public money.

2025
Ekurhuleni — Gauteng

More than 70 guards blocked a customer care centre over repeated late salaries and unpaid bonuses. The state had paid the contractor in full. The workers saw nothing. The state pays; the contractor profits.

May 2025
KwaZulu-Natal — 41 Companies

Unions exposed a systematic pattern of 41 security companies deducting R13 million per month from workers for UIF contributions that were never paid to SARS. Workers faced legal liability for their employers' fraud.

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    What the Bill Does

    The Insourcing Bill creates a binding legal framework. Not guidelines. Not suggestions. Legally enforceable obligations on every organ of state in South Africa.

    01
    Mandatory Insourcing Policy

    The Minister must develop a national insourcing policy that promotes job security, fair labour practices, and limits outsourcing. All organs of state must implement it — no exceptions without justification.

    02
    Direct State Employment

    Workers providing recurring services to government must be employed directly by the state — securing benefits, stable wages, UIF, pension, and medical aid. No more middlemen stripping their earnings.

    03
    Skills Audit & Database

    Every organ of state must conduct annual skills audits and maintain a database of employee capabilities. Before outsourcing, they must first check if an existing employee can perform the service.

    04
    Training Obligation

    Where outsourcing is unavoidable, the private contractor must train a state employee to perform that service. Training value must equal a prescribed percentage of the contract value — building capacity permanently.

    05
    Quarterly Reporting

    Accounting officers must submit quarterly reports to the Minister on every outsourced service, the reasons it could not be insourced, and the steps being taken to bring it in-house — full transparency.

    06
    Annual Parliamentary Report

    The Minister must table an annual report in the National Assembly on the progress of insourcing across all government departments, ensuring democratic oversight and public accountability.

    Services Covered by the Law

    The Bill mandates insourcing across the full spectrum of recurring government service needs — with the Minister able to expand the list by regulation.

    Security Services
    Cleaning Services
    Gardening Services
    General Maintenance
    Catering Services
    Auditing Services
    Transport Services
    IT Services
    Administration
    Healthcare Services
    + Any Other Prescribed

    How Insourcing Works

    A clear, accountable process replacing the broken tender-outsource cycle.

    01
    Skills Check First

    Before any outsourcing, the state must check its own database of employee skills to see if the service can be delivered in-house.

    02
    Deploy Existing Staff

    Where an employee has the skill and is available, they are deployed to deliver the service — even if it's outside their core functions.

    03
    Justify Any Outsourcing

    If outsourcing is truly unavoidable, the accounting officer must formally confirm this in writing, with reasons, before proceeding.

    04
    Build Capacity Back

    Any contractor hired must train a state employee to perform that service — building permanent government capacity with every contract.

    Your Vote Makes This Law

    The Insourcing Bill will not pass itself. It requires political will — and political will starts with the ballot. Every municipality where the EFF gains power is a municipality where workers will be employed directly by the state, paid fairly, with benefits, on time.

    The ANC created this outsourcing system. The DA protects it. The EFF is the only party that has introduced legislation to end it — because we serve workers, not contractors.

    In the 2026 Local Government Elections, voting EFF means voting for the Insourcing Bill. It means voting for the security guard who hasn't been paid in two months. It means voting for the cleaner whose provident fund was stolen. It means voting for accountability over corruption.

    2026 Election
    Key Facts
    • Bill Status Presented to Portfolio Committee on Public Service & Administration, 4 March 2026
    • Type of Bill Section 76 — requires both National Assembly and NCOP approval
    • Introduced By MS OMC Maotwe, MP — EFF Treasurer General [B 19—2025]
    • Who Benefits Every security guard, cleaner, catering worker and public servant employed through outsourcing
    • Register to Vote registertovoteeff.org.za — ensure you are on the voters roll for 2026
    VOTE EFF
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    The Insourcing Bill is ready. Workers are ready. Now we need your vote to make it law. Register today — every vote is a vote to end exploitation.

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