Note to Editors: Please find attached English and Afrikaans soundbites by Cllr Piet Botha and Sesotho soundbite by David Masoeu MPL. See attached pictures here, here, and here.
The Democratic Alliance (DA) in Matjhabeng will urgently escalate the deadlock in finalising the Phakisa Raceway contract by formally engaging the Mayor’s Office, the Acting Municipal Manager, and the Premier’s Office to demand immediate resolution and accountability. This intervention aims to unlock an R100 million investment and prevent further economic losses and job stagnation resulting from ongoing administrative failures.
In March 2023, the Matjhabeng Council approved a long-term lease for the Phakisa Raceway and a Memorandum of Understanding with the Free State Gambling, Liquor and Tourism Authority (FSGLTA), which then tasked the Free State Development Corporation (FDC) with facilitating the process.
In July 2023, the FDC, acting as the facilitator appointed by FSGLTA, placed an advertisement in the papers to solicit proposals for the Raceway, with a closing date of 30 July 2023. The FDC then appointed the preferred bidder, Investchem Chemical Logistics, on 17 January 2024. Since that appointment, Investchem has repeatedly asked the FDC for the contract, which remains unsigned.
In June 2025, I became aware of the plight and tried to assist with the process. I met with the Executive Mayor, Councillor Thandoxolo Khalipha, who subsequently promised to resolve the matter within two weeks. Investchem was even announced as the preferred bidder for Phakisa at the Matjhabeng Investment Summit.
In the meantime, Investchem interacted with the MEC for DESTEA in the Free State, Mr Moses Ketso Makume, but was told this was started before his time. They then approached the Premier, but since being promised that the matter would be resolved, nothing has come of it. This matter has now been ongoing for three years and two months.
Matjhabeng and its people stand to lose an investment of R100 million and many job opportunities. This is in addition to Phakisa itself, which is being plundered due to a lack of security, and to the electricity being cut off due to non-payment by the Provincial Government.
Investchem has the money readily available and is even prepared to pay the Municipal Account; all that is needed is the contract so they can start repairs and improvements immediately and create much-needed jobs.
The DA will continue to apply pressure on all relevant stakeholders to ensure that this matter is urgently concluded and that the Matjhabeng community benefits from investment, job creation, and the restoration of a key economic asset.