Outsourcing by Government Under the Microscope

Parliament

The Economic Freedom Fighters (EFF) has drafted a bill that aims to address problems caused by the outsourcing of services and functions provided by government.

The Draft Insourcing Bill, a private member’s bill, was drafted by Hlengiwe Mkhaliphi, an EFF member of parliament.

According to the EFF, government started to outsource services and functions post-1994.

A number of administrative problems were created but, in particular, the explanatory summary highlights the inflation of prices of contracts through manipulation of the tendering system and the exploitation of workers employed by the contracted service providers.

The Draft Insourcing Bill seeks to provide a comprehensive legislative mechanism to bring an end to the problems and challenges, brought about by the outsourcing of services and functions provided by government.

The draft bill will require all government departments and State-Owned Entities (SOE), at national, provincial and local level, to insource all services that they provide on a recurring basis.

Employing workers to provide services for government and SOEs on a recurring basis via a third party will be prohibited.

Comment on the proposed content of the draft bill is invited within 30 days of the date of publication.

Sabinet Cape Town Office

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