President Cyril Ramaphosa says the government must end the outsourcing of basic functions, warning that the practice opens the door to corruption. Ramaphosa was addressing the 5th National General Council of the African National Congress, on Monday where he emphasized that outsourcing has significantly weakened the state by eroding its capacity to perform essential functions. He noted that public institutions have lost the necessary skills and capabilities to deliver services effectively, as many core functions are handed over to external contractors.
The President highlighted that outsourcing has led to widespread corruption, with numerous cases of tender manipulation, bribery, overpricing, and the use of front companies. He expressed concern that many tenders are awarded to intermediaries or ‘middlemen’ who lack the competence to deliver the required services.
“We need to get rid of outsourcing of simple straightforward functions in our government system,” he said to the cheering delegates.
“Outsourcing opens the door to corruption, with many cases of tender manipulation, bribery, overpricing and the use of front companies,” he added.
Ramaphosa stressed that procurement should be used as a tool to support the development of black- and women-owned companies that can produce the products and services needed by the government. To address the issues caused by outsourcing, he pointed to the need for substantive reforms in the public procurement system. The National Treasury is preparing to implement the Public Procurement Act, which will introduce a new framework and establish a Public Procurement Office to ensure transparency, efficiency, and accountability in procurement processes.
The President called on the ANC to take decisive action to end the outsourcing of core state functions. He emphasized the importance of rebuilding the capacity of the state to perform these functions internally, rather than relying on external contractors. This approach is seen as critical to restoring the integrity and efficiency of public institutions, reducing corruption, and ensuring that public funds are used effectively to benefit the people of South Africa.
Ramaphosa concluded by underscoring the need for the government to prioritize good governance and economic empowerment, while fostering public trust through transparent and ethical practices.
