An urgent intervention to unlock a R100 million investment and prevent further economic losses and job stagnation resulting from ongoing administrative failures at the Phakisa Raceway, has become priority.

In March 2023, the Matjhabeng Council approved a long-term lease for the Phakisa Raceway and a memorandum of understanding (MoU) 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 the 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.

Cllr Piet Botha, DA mayoral candidate for the Matjhabeng Local Municipality, says they 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.

“In June 2025, I became aware of the plight and tried to assist with the process. I met with the executive mayor, Cllr 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,” says Botha.

Botha says Investchem then interacted with Moses Ketso Makume, MEC for the Department of Economic, Small Business Development, Tourism and Environmental Affairs (Destea) in the Free State, 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,” says Botha.

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 and is even prepared to pay the municipal account; all that is needed is the contract so they can start repairs and create much-needed jobs, the DA firmly believes.