Latest news with #DaybreakFarms
IOL News
22-07-2025
- Business
- IOL News
PIC grilled over R1. 7bn Daybreak support
Daybreak Farms has become emblematic of some of the challenges facing the PIC's unlisted investments portfolio during a period of heightened public scrutiny. Image: NSPCA THE Public Investment Corporation (PIC) faced intense scrutiny in Parliament last week over its handling of high-risk unlisted investments, including a hefty bailout of the embattled poultry giant Daybreak Farms. South Africa's largest asset manager of public funds was on the backfoot, defending its decision to inject more than R1.7 billion into Daybreak Farms, a vertically integrated poultry business on the brink of liquidation. Daybreak has become emblematic of some of the challenges facing the PIC's unlisted investments portfolio during a period of heightened public scrutiny. At the heart of the inquiry was Deputy Minister of Finance Dr David Masondo, who also chairs the PIC board. Accompanied by senior PIC officials and the new chief executive, Patrick Dlamini, Masondo sought to clarify the PIC's position amid growing public concern and media attention. Masondo explained that the PIC had committed R1.7bn to Daybreak, with R250 million injected earlier this year and an additional R150m for operational expenses in February 2025, designed specifically to stave off liquidation. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ He emphasised that 'the PIC board does not intend to keep injecting funds indefinitely; the business must turn itself around to survive the crisis'. The message was firm: while the PIC remains a key investor, the responsibility to deliver a viable recovery rests with Daybreak's management and board. Acknowledging governance failings, Masondo outlined the troubles: 'A board was appointed in 2021 but resigned the same year in May. A new board came in November 2022. Allegations surfaced regarding irregularities in the recruitment of Daybreak's chief executive. Investigations found violations of PIC and Daybreak policies as well as general recruitment procedures.' He confirmed these findings had led to resignations: 'Most of the board members involved in the irregular recruitment process resigned. The board was subsequently strengthened with experienced members.' Daybreak Farms is under business rescue, with a practitioner appointed and a rescue plan expected by August 22. Masondo stressed that liquidation must be avoided: 'The board believed strongly that liquidation should be avoided due to the company's importance to the economy, food security, and job preservation.' He explained PIC's limited direct operational role: 'We do not run the businesses but appoint directors to boards when necessary to support turnaround efforts,' with appointments made under strict policy and approved by the PIC's Directors Affairs Committee, chaired by Masondo himself. Masondo framed the Daybreak issue within the PIC's wider mandate. The asset manager invests on behalf of the Government Employees Pension Fund (GEPF), Unemployment Insurance Fund (UIF), Compensation Fund (CF), and others, with a stated goal to protect and grow workers' retirement and social benefit funds. He highlighted the PIC's growth since 2021: 'Assets under management grew from R2.3 trillion in 2021 to R3trln in March 2025, a 30% increase. Over the past 10 years, growth has been at 68%.' Regarding unlisted investments, which include direct equity ownership in companies such as Daybreak, growth was modest at best: 'The value rose marginally from R125bn in 2021 to R127bn in 2025, just a 1.4% increase.' This was attributed to UIF and CF suspending mandates over earlier concerns. Masondo also reiterated the PIC's commitment to balancing financial return with social and environmental considerations. He said: 'Since the beginning of its unlisted investment programme, PIC has created over 190 000 jobs.' The PIC reported that it had shared with Scopa a list of the 20 best-performing companies and 20 that had failed, confirming that 'most of the failed investments, including Daybreak, were made before the current leadership'. The one exception cited was Enable Capital, another troubled investment attracting media scrutiny. Meanwhile, Scopa members did not let the PIC off lightly on pensioner concerns. One member queried the contradiction between the PIC's reported average annual return of 15.9% and the only 2.3% pension increase awarded this year, which was noticeably below inflation. The discrepancy raised questions about the flow-through of investment returns to pensioners. Other areas debated included: Proposals for incentives to boost infrastructure investment The imperative to balance financial and social returns The PIC's reported impact on job creation, empowerment, and governance Calls for greater transparency and accountability within PIC's operations. Masondo assured Committee members that all recommendations from the Mpati Commission investigation had been fully implemented by March 31 this year. This included wide-ranging governance reforms and the creation of an ethics office aimed at promoting ethical conduct and reducing risks. Addressing recent media reports, he revealed: 'A senior PIC employee was alleged to have solicited a bribe. This matter was reported via our whistleblowing platform. The individual has since been placed on precautionary suspension pending investigation.' He confirmed that 'appropriate action will be taken based on the outcome'. Get the real story on the go: Follow the Sunday Independent on WhatsApp.
IOL News
23-06-2025
- Business
- IOL News
NSPCA faces financial struggles after taking on Daybreak Farms in animal cruelty court case
The NSPCA is urgently seeking public and private support to address its financial struggles after taking on Daybreak Farms in a landmark animal cruelty court case. Image: Independent Newspapers Archives The National Council of SPCAs (NSPCA) has warned of severe financial strain after spending over R580 000 responding to what it calls a 'morally reprehensible' animal welfare disaster at Daybreak Farms, despite a High Court ruling in its favour. The Gauteng High Court confirmed an interim order against Daybreak Farms on May 23, holding the poultry company accountable for the mass suffering and death of over a million birds. The ruling ordered Daybreak to cease inhumane practices and cover the NSPCA's legal costs. However, the NSPCA's ability to recover those funds is now in jeopardy after Daybreak Farms placed itself into voluntary business rescue. 'As a non-profit organisation reliant on public support, the NSPCA cannot shoulder this burden alone.' The organisation is now appealing to the public and private sector for urgent financial support to continue its work. 'Immediate financial support is critical to continue our fight for the animals who have no voice,' the NSPCA said. Following extensive investigations at Daybreak Farms, the NSPCA uncovered what it called 'gross negligence, systemic mismanagement, and a complete abdication of responsibility' by the company's leadership. This led to the laying of criminal charges against the Board of Directors. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Senior Inspector Nazareth Appalsamy, Manager of the NSPCA's Farm Animal Protection Unit, said: 'The law compels us to value every single animal individually. To witness the suffering of one animal multiplied by a million is not just a disaster — it is a grave and morally reprehensible failure.' Graphic details from the investigation revealed birds left to cannibalise each other, others with large open wounds, and many too weak to move. The High Court order compels Daybreak to ensure proper feeding, halt chick placements until proper care can be assured, stop inhumane culling, provide a resolution plan, and grant the NSPCA full access to facilities. The court cited the company's 'collapse of responsibility' and 'financial mismanagement of the available funds.' The NSPCA is now working with SAPS and the NPA to pursue criminal accountability. 'We will now work closely… to pursue justice on behalf of the animals that suffered,' the NSPCA said. THE MERCURY
Daily Maverick
22-06-2025
- Daily Maverick
‘Reprehensible failure' — NSPCA files criminal charges against Daybreak Farms directors
The National Council of SPCAs has filed criminal charges against the board of directors of Daybreak Farms, following what it describes as one of the largest and most disturbing cases of animal cruelty in South African history. More than one million chickens died or suffered prolonged distress at Daybreak Farms amid what officials are calling a systemic collapse in basic animal care. The charges come after weeks of high-profile legal action, public outcry and disturbing revelations from multiple investigations into the company's broiler operations. The National Council of SPCAs (NSPCA) now seeks criminal accountability for what it describes as 'a grave and morally reprehensible failure'. The council's senior inspector Nazareth Appalsamy, who heads the Farm Animal Protection Unit, said the law compels the NSPCA to value every animal individually. 'To witness the suffering of one animal multiplied by a million is not just a disaster – it's a grave and morally reprehensible failure.' According to the NSPCA's formal statement released on Friday, on-site investigations revealed chickens suffering in scenes reminiscent of disaster zones: birds cannibalising one another, open wounds left untreated and animals too weak to move. The scale of neglect was matched only by the visible breakdown in operational control across Daybreak facilities. Photos taken during inspections – now widely circulated online – depict rows of emaciated birds crammed into overcrowded sheds, some lying motionless, others pecking desperately at carcasses. The NSPCA's evidence dossier reportedly contains documentation of mass starvation events, inadequate or absent veterinary oversight and intentional inhumane culling methods. 'This is not misfortune,' said one official. 'It's systemic abuse.' Court steps in On 23 May 2025, the Gauteng Division of the High Court in Johannesburg made an interim order compelling Daybreak to comply with urgent animal welfare directives. In a scathing ruling, the court stated: 'The urgency was necessitated by the collapse of Daybreak's responsibility to appropriately care for the chickens in their possession and under their control.' The court cited 'financial mismanagement of the available funds' by the company's leadership. As part of the judgment, Daybreak was ordered to cease inhumane culling immediately, provide adequate nutrition to all remaining birds, halt all new chick placements until the NSPCA deemed conditions appropriate and provide inspectors with full access and a comprehensive resolution plan. Despite the ruling, the NSPCA has warned that meaningful accountability remains elusive. Though the court awarded legal costs in their favour, the organisation now fears it may never recover those funds: shortly after the judgment, Daybreak announced it was entering voluntary business rescue proceedings. Business rescue In the eyes of many observers, Daybreak's move into business rescue – a legal process similar to bankruptcy protection – only deepened concerns over the company's transparency and financial conduct. As reported by Daily Maverick on 23 May, Daybreak's sudden shift into business rescue raised red flags about possible attempts to shield decision-makers from the full financial fallout of the crisis. The Public Investment Corporation (PIC), which owns a controlling stake in Daybreak, faced mounting pressure to explain how such a collapse was allowed to unfold on its watch. Daybreak's financial woes appear deeply intertwined with the animal welfare catastrophe. Feed shortages, for example, were not caused by logistical blockages but, according to the NSPCA, by a failure to allocate sufficient funds for procurement. As a result, birds were left to starve, and workers were forced to cull tens of thousands of chicks without the tools or training to do so humanely. Human costs Beyond the birds, human suffering has also come into focus. Daily Maverick's reporting from early May included interviews with Daybreak workers at its Delmas operation, who described despair, intimidation and, in some cases, retaliation for speaking out. Some workers at the farm told Daily Maverick they lack the necessary farming experience to help save the company. One employee told us: 'We didn't even know what to say anymore. You can't just keep quiet when you see animals suffering like this. But when we tried to raise it, it was like nobody at the top was listening.' Amid the scandal, board chairperson Bojane Segooa resigned and reportedly received a R625,000 payout. The timing of her departure – days after the high court's intervention – fuelled public anger. Though a new board has since been installed, many within the NSPCA and broader civil society remain sceptical that meaningful reform will occur. A crisis of governance Daybreak's collapse is more than an isolated corporate disaster – it is also a test of South Africa's welfare regulatory and enforcement systems. The NSPCA, which receives no government funding, has now spent more than R580,000 responding to the Daybreak emergency. These costs include transport, shelter setup, biosecurity measures and extensive staff hours. The organisation says it will continue to work with the South African Police Service and the National Prosecuting Authority to ensure criminal charges are pursued. However, without government support or clear political backing, the path to justice remains uncertain. 'This cannot be swept under the rug,' said one inspector involved in the case. 'We are talking about a million sentient beings who suffered because no one took responsibility. If there are no consequences for this, what does that say about the value we place on life?' Public response Civil society organisations have begun to mobilise around the case. An open letter signed by 16 conservation and food justice groups was delivered to the agriculture minister last week, demanding that the state undertake a full audit of Daybreak's practices and provide emergency support to the NSPCA. The letter warns that, if ignored, 'this crisis will repeat itself – not just at Daybreak, but across an industry where enforcement is weak, funding is scarce and animals are treated as numbers on a balance sheet'. For the NSPCA, the criminal charges represent a turning point. After weeks of being on the defensive – rushing from farm to farm, providing aid to surviving animals and navigating legal landmines – it now seeks to push the matter into the courts. 'We owe it to these animals,' said Appalsamy. 'We owe it to the public. And we owe it to the future of farming in this country.' DM
IOL News
20-06-2025
- IOL News
NSPCA takes action against Daybreak Farms over horrific mass animal welfare violations
NSPCA has laid criminal charges over 'million-bird massacre' at Daybreak Farms. Image: File The National Council of SPCAs (NSPCA) has laid criminal charges against the board of directors of Daybreak Farms, following what it has called one of South Africa's worst recorded mass animal welfare disasters, with over a million chickens dead or dying under alleged inhumane and unlawful conditions. The NSPCA confirmed on Thursday it had filed a criminal docket with police, accusing the poultry producer's leadership of gross negligence, systemic mismanagement, and multiple violations of the Animal Protection Act. In a damning statement, the organisation said its inspectors uncovered 'overwhelming evidence' of a total collapse in animal care across multiple Daybreak facilities. Chickens were allegedly found starving, suffering from untreated injuries, and in some cases, resorting to cannibalism due to extreme overcrowding and prolonged neglect. Video Player is loading. 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Advertisement Next Stay Close ✕ Ad Loading 'The law compels us to value every single animal individually,' said Senior Inspector Nazareth Appalsamy, manager of the NSPCA's Farm Animal Protection Unit. 'To witness the suffering of one animal multiplied by a million is not just a disaster, it's a grave and morally reprehensible failure.' Site visits by the NSPCA were described as harrowing. Inspectors reported scenes of mass death, with birds dying slow, painful deaths, others lying with gaping wounds, and many unable to move. The organisation has described the situation as a 'massacre'. The criminal complaint follows a recent Gauteng High Court ruling that made final an urgent interim order against Daybreak Farms. The court found that the company's leadership had 'failed in their legal duty of care' and cited 'financial mismanagement of the available funds,' which endangered the lives of the animals in their possession. 'The urgency arose from Daybreak's failure to care for the chickens in their possession,' the ruling stated. The final court order compels Daybreak to stop all inhumane culling, provide adequate feed and veterinary care, halt new chick placements unless the NSPCA deems it safe, and grant full access to its facilities for compliance monitoring. The company was also ordered to pay the NSPCA's legal costs. However, efforts to enforce the court's directives have been complicated by a new development. On May 20, 2025, Daybreak voluntarily entered business rescue proceedings, a move the NSPCA fears could obstruct both enforcement and the recovery of more than R580,000 it spent on emergency operations. 'This is not only a legal and ethical failure, but also a financial one,' said the NSPCA. 'Despite a High Court ruling in our favour, our ability to recover costs has been compromised by Daybreak's sudden entry into business rescue.' In response, Daybreak Foods issued a media statement confirming the appointment of veteran restructuring specialist Tebogo Maoto as its Senior Business Rescue Practitioner (BRP). Maoto, formally appointed on May 22, has been tasked with stabilising operations and developing a turnaround strategy. Daybreak's interim board chairperson, Dr Charlotte Nkuna, said: 'We welcome the appointment of the BRP as part of a collective effort, together with the Public Investment Corporation, to rescue the company and save approximately 2,800 jobs.' Under Section 133 of the Companies Act, Daybreak now benefits from a temporary legal moratorium that protects it from enforcement actions, while the BRP and board prepare a rescue plan addressing its financial crisis. The NSPCA, which depends on public donations and limited funding, is now appealing for urgent financial support to continue its monitoring and legal efforts. Operational costs continue to mount as inspectors remain on-site to oversee animal welfare and ensure compliance with the court's directives. 'We urgently appeal to the public, the private sector, and compassionate individuals to assist us in holding Daybreak accountable and in preventing further suffering,' the organisation said. Daybreak, once considered one of the country's leading poultry producers, has yet to respond publicly to the NSPCA's criminal allegations.
