Reject the Mandatory Insourcing Bill

Parliament is considering the Insourcing Bill (B19-2025). If passed, every organ of state would be forced to bring in-house a long list of functions – from security and cleaning to IT, transport, auditing and even catering. The Bill obliges departments and municipalities to insource all of these services, with outsourcing allowed only in rare, tightly-controlled circumstances.

  • Closed: 31 August 2025
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More about this bill
In the media

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This campaign closed on 31 August 2025

More about this bill

On paper this may sound pro-worker, but in practice it will:

The result? Slower service delivery, higher taxes, fewer private-sector jobs – and still no guarantee of clean governance.

  • Explode the public-service wage bill – already 10.4 % of GDP and crowding out basic services.

  • Eliminate thousands of small and medium enterprises (SMMEs) that currently provide these services, putting jobs and family livelihoods at risk.

  • Overload a state that is struggling to keep the lights on and the water running. Forcing government to manage every canteen, server room and patrol shift will drain scarce managerial capacity.

  • Undermine professional independence – e.g. auditors must hold government to account, not serve as its employees.

  • Shift, rather than solve, corruption. The Bill is premised on the idea that tenders equal corruption, yet politically-driven hiring and internal procurement can be just as vulnerable.

Key concerns

Practical Risk

Real-world Consequence in today’s SA

Massive fiscal cost

Treasury is already warning that compensation costs are squeezing out investment and social spending. Adding tens of thousands of permanent posts will blow the budget ceiling.

State capacity overload

Departments now struggle to manage core mandates; adding catering, gardening, IT & fleet management diverts focus and expertise.

Job destruction in the private sector

Security, cleaning, catering and IT sectors are dominated by SMMEs and cooperatives – the Bill would collapse their client base overnight.

Quality & skills gaps

Government pay scales cannot attract top cyber-security engineers, software developers or specialist auditors, risking weaker, not stronger, performance.

Loss of independent oversight

Internal auditors answer to the same executives they must audit, undermining accountability.

Constitutional & policy conflict

Section 217 of the Constitution requires procurement systems that are fair, equitable, transparent, competitive and cost-effective. A blanket ban on outsourcing ignores this principle and good-practice guidance in the PFMA and MFMA.

What we're advocating for

  1. Withdraw the Bill and request the Portfolio Committee on Public Service & Administration to focus instead on targeted procurement reforms that fix tender abuse without destroying competitive service markets.

  2. Strengthen enforcement of existing anti-corruption statutes and blacklisting mechanisms.

  3. Promote fair labour standards through improved enforcement of the Basic Conditions of Employment Act and sectoral determinations, rather than blanket nationalisation of jobs.

  4. Prioritise value-for-money by allowing entities to choose the delivery model (in-house, public-private, outsourced) that demonstrably offers the best outcome for citizens.

In the media

EWN Article
SA Legal Academy Article

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