Just a week after Katiso "KT" Molefe, a controversial businessman, was released on R400,000 bail, the company he founded, Sebastien Investments and Logistique, is once again at the centre of a storm. At the Matjhabeng Investment Summit this week, Sebastien Investments pledged a staggering $711 million (R12.35 billion) for the development of the long-stalled Welkom Cargo Airport in the Free State, and other facilities. The project, once fully realised, is expected to cost around R200 billion.
The pledge was announced at the summit, with Sebastien representatives stating that their company shared common values and goals with the Matjhabeng Local Municipality, driven by "people and purpose." Yvonne Reece, identified as a representative of Sebastien, stated, "I am honoured and privileged to inform you that our board of directors has not only brought Welkom airport to Matjhabeng, but we have also leveraged our network and international alignments." She added, "We are privileged to say we have not just bought the airport – we have continued the existing networking opportunities."
Beyond the airport, Sebastien also committed to investing $1 million in a training centre focused on skills development for youth, and $10 million in the Khanyisa Care Centre, a local healthcare and social services facility aimed at aiding underserved communities. A further $200 million was earmarked for a logistics hub, described as one that would "make the Free State proud", servicing more than 600 trucks with a dedicated truck stop. Air freight operations would receive a $500 million investment, with plans to host aircraft requiring proper facilities on the airport's 5km runway. "We have secured an air freight company that will bring 10 aircraft and five helicopters," Reece said.
The summit, attended by Free State Premier Maqueen Letsoha-Mathae and Deputy Minister in the Presidency for Planning, Monitoring and Evaluation Seiso Mohai, aimed to attract investment to the financially distressed Matjhabeng Local Municipality, which is currently under provincial administration due to its failure to pay water and electricity bills.
However, the timing of the announcement, along with the controversial background of Katiso Molefe, has raised serious questions about the legitimacy of the tender and the allocation of resources. Molefe, who is accused of masterminding the 2022 murders of music producer DJ Sumbody and his two bodyguards, as well as the killing of engineer Armand Swart, resigned from Sebastien Investments in July, along with his son Thapelo Molefe, who stepped down in February, according to Companies and Intellectual Property Commission records.
Despite his resignation, Molefe appears to be using the airport project as justification for his release on bail, citing that his incarceration would substantially affect his business activities. His bail conditions include reporting to the Morningside Police Station and a restriction to Gauteng's borders, except for business travel to Welkom after notifying the investigating officer.
Adding to the controversy, sources have revealed that the plan presented by Sebastien Investments bears a striking resemblance to the one initially presented by King Michaels, the company that was originally awarded the tender. A source stated that the acting municipal manager contacted King Michaels' director requesting their proposal. "They sent her the refined proposal with reduced figures of R200 billion because they did not trust the acting municipal manager. They had been robbed of the project before."
According to documents, King Michaels outlined a preliminary development breakdown for the project, detailing four major phases expected to unfold over a 15-year period. The investment is similar in its breakdown to what King Michaels submitted. The municipality initially said the project was worth only R5 billion, and suddenly it has ballooned to billions.
Further fuelling public anger, the municipality spent nearly R6 million on hosting the summit, including R2 million on renovating the Freyer Meyer Hall and R1 million on advertising, while residents continue to suffer from worsening living conditions. Refuse collection has been suspended for over seven weeks due to a lack of personal protective equipment for workers, and residents endure frequent electricity cuts and sewage overflows.
The failures directly contravene court orders compelling the municipality to prioritise service delivery and sustainability. One local source said: “Another futile investment summit squanders millions of taxpayer funds while people live without basic services.”
The situation has also drawn national attention. Igor Scheurkogel, a Free State Parliament member and DA deputy provincial chairperson, has posed formal questions to Transport Minister Barbara Creecy regarding the project. In her written response, Creecy stated that the department had no knowledge of any cargo airport development or any company awarded a tender for the Welkom Airport upgrade.
As the controversy deepens, the renewed association of Molefe, a suspect facing multiple murder charges, with the Welkom Airport project raises serious questions about how he could remain tied to a R200 billion municipal project in a city where even basic refuse collection and clean water remain out of reach. The situation highlights the urgent need for transparency and accountability in the allocation of public funds and the awarding of tenders, particularly in municipalities struggling to provide basic services to their residents.
The Matjhabeng taxpayers are increasingly frustrated with the municipality’s leadership for hosting yet another summit amid pressing service delivery failures. “The fourth summit in four years, convened by Khalipha, has provoked anger among residents whose refuse has not been collected for weeks, while water scarcity and sewage spills worsen daily,” the source said.
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