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IOL News
2 days ago
- Business
- IOL News
Matshepo More, PIC return to CCMA after unfair dismissal ruling
Former Public Investment Corporation chief financial officer Matshepo More is returning to the Commission for Conciliation, Mediation and Arbitration (CCMA), where her erstwhile employer is challenging a CCMA ruling in her favour. Image: Screenshot Former Public Investment Corporation (PIC) chief financial officer Matshepo More is heading back to the Commission for Conciliation, Mediation and Arbitration (CCMA), which previously ordered her reinstatement and awarded her over R6.7 million in compensation. In September 2022, CCMA commissioners Cameron Morajane and Nthabiseng Thokoane declared her dismissal substantively and procedurally unfair, and she was reinstated. The PIC was ordered to pay the costs, and in a supplementary award, the commissioners quantified her backpay and costs due at more than R6.74m and R39 000, respectively. More was fired by the PIC in October 2021 after being found guilty of misconduct. 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 ✕ She was charged after approving R350m revolving credit facility to the now defunct VBS Mutual Bank in 2014, which was outside her delegation of authority. The PIC accused More of recommending the then chief executive, Dr Dan Matjila, to enter into the revolving credit facility agreement in breach of her duty to ensure that the terms of the agreement complied with the fund investment panels' approval before providing the confirmation and recommending that it be signed. More then referred her unfair dismissal dispute to the CCMA, where she argued that the alleged misconduct constituted a breach of contract. The CCMA found that the claim (charging and dismissal) that the PIC has against More is extinct through the running of uninterrupted prescription. The commissioners deemed the charges and subsequent dismissal incompetent. In addition, the commissioners stated that as the instruction was in contravention of the delegation of authority, More's dismissal was therefore premised on an unlawful and unreasonable instruction and the charges and the subsequent dismissal were unfair. 'More has succeeded in her claim for prescription. The outcome is that the dismissal is substantively and procedurally unfair. The instruction issued by Dr Matjila as found above was unreasonable and unlawful,' the CCMA ruled. The PIC then approached the Labour Court in Braamfontein, Johannesburg, arguing that the commissioners committed a material error of law. Last month, Labour Court Judge Connie Prinsloo reviewed and set aside the CCMA's arbitration award and the supplementary award. 'The matter is remitted to the CCMA for arbitration de novo by a senior commissioner or commissioners, as the case may be, other than the third and fourth respondents (Morajane and Thokoane),' reads Judge Prinsloo's judgment, adding that the record of proceedings generated the supplementary case shall serve as the evidence before the appointed commissioner or commissioners. The arbitration de novo (afresh) is to be conducted on such terms and in such manner as the appointed commissioner or commissioners may determine, and the CCMA was directed to enrol the matter for arbitration. Attempts to contact More were unsuccessful at the time of publication.
Daily Maverick
3 days ago
- Business
- Daily Maverick
Daybreak Foods: Chicken producer hopes business rescue will hatch a turnaround
Creditors and almost 3,000 employees may finally see some resolution as the first business rescue meetings for beleaguered chicken producer, Daybreak Foods, kick off next week. Daybreak Foods, which has been in the spotlight over the past two months for animal cruelty, mismanagement, failure to pay staff and failure to pay contractors, has successfully applied to be placed under business rescue. Under the Companies Act, business rescue practitioner Tebogo Maoto is required to convene the first meeting of creditors and employees within 10 days of his appointment. The first meeting of creditors will be held virtually through Microsoft Teams on Monday, 2 June at 10am. The first meeting of employees will also take place virtually through Microsoft Teams on Tuesday, 3 June at 10am. In a notice, Maoto said the formal agenda for the meetings would be communicated to all affected parties in due course. In the interim, affected parties may address any queries they have directly to Motau at [email protected] In a media statement, the Public Investment Corporation (PIC), a major creditor and shareholder in Daybreak Foods, said it was of the 'firm belief that the company can be rescued and must be rescued, and that business rescue is the best path to preserve the company's value and potential, saving approximately 3,000 jobs, and importantly, to realise returns for clients and their beneficiaries on their investment'. Maoto was formally appointed as the senior business rescue practitioner (BRP) of Daybreak Foods on Thursday, 22 May 2025, after the company was placed under voluntary business rescue two days earlier. Maoto has significant experience in the field of business rescue, turnarounds and corporate restructurings, both in South Africa and in cross-border mandates. This extends to the turnaround and restructuring of various non-listed companies, including York Timber, Adax Bioenergy (Sierra Leone), Karstern Boerdery and Premier Hotel OR Tambo. A statement from the company notes that the business rescue proceedings for Daybreak Foods will focus on stabilising its ongoing operations, while Maoto assists with the development of a turnaround strategy and finding solutions to the funding shortfalls of Daybreak Foods. The PIC has already undertaken several measures to contribute towards stabilising Daybreak Foods, which include the injection of R74-million in working capital, intended to address the company's immediate liquidity needs. Daybreak Foods' interim chairperson Dr Charlotte Nkuna commented: 'We welcome the appointment of the BRP as part of the collective effort, together with the Public Investment Corporation, to rescue the Company and save approximately 2,800 jobs. We are confident that the business rescue proceedings will help Daybreak Foods to achieve a credible turnaround plan in the interest of all our stakeholders.' Daybreak Foods has a legal moratorium on any legal and/or enforcement actions being instituted against it, while the company's board and the BRP prepare the necessary proposals to rescue the company from its financial distress. DM
IOL News
4 days ago
- Business
- IOL News
Daybreak Foods enters business rescue as financial troubles mount and 2,800 jobs hang in the balance
State-owned poultry producer Daybreak Foods has started business rescue proceedings Image: NSPCA State-owned poultry producer Daybreak Foods has entered business rescue due to financial difficulties with Tebogo Maoto appointed to lead efforts to secure funding and protect around 2,800 jobs. IOL previously reported that the company sought approval from the Public Investment Corporation due to severe financial problems made worse by the culling of underfed chickens and protests from workers over unpaid salaries. Last week, Johannesburg High Court issued a final order against Daybreak Foods, following legal action by the National Council of SPCAs (NSPCA) over allegations of animal cruelty. The ruling, handed down on Friday, compelled the poultry producer to implement a series of measures aimed at addressing animal welfare concerns at its Limpopo facilities. The court rejected Daybreak's claim that a R74 million cash injection from the Public Investment Corporation (PIC) had resolved the crisis. In a statement, Daybreak Foods said Maoto brings extensive experience in business rescue, turnarounds, and corporate restructuring, both within South Africa and across borders. 'The business rescue proceedings will focus on stabilizing operations while developing a turnaround strategy and addressing funding shortfalls,' the company said. 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 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. Next Stay Close ✕ Daybreak Foods was placed under voluntary business rescue on May 2025 after a resolution filed by its Board in terms of Section 129(1) of the Companies Act. 'We welcome the appointment of the BRP as part of the collective effort, together with the Public Investment Corporation to rescue the Company and save approximately 2 800 jobs," Daybreak Foods' interim chairperson, Dr Charlotte Nkuna said "We are confident that the business rescue proceedings will help Daybreak Foods to achieve a credible turnaround plan in the interest of all our stakeholders.' In terms of Section 133 of the Act, the poultry producer has also been granted a legal moratorium protecting it from legal and enforcement actions while the Board and BRP prepare proposals to rescue the company from financial distress. "The Daybreak Foods Board, in conjunction with the PIC, in its capacity as the shareholder and creditor, will support the BRP to develop and implement a sustainable business rescue plan that will be aimed at addressing its short and long-term funding needs, but also ensure future sustainability and profitability," the statement concluded. IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
Daily Maverick
23-05-2025
- Business
- Daily Maverick
Daybreak Foods business rescue — a new board fails to instil hope in workers
In a move that's part lifeline, part last rites, the Public Investment Corporation has thrown its weight behind Daybreak Foods' move into business rescue, announcing a freshly reconstituted board and a renewed — if slightly desperate — commitment to saving South Africa's embattled poultry giant. But workers remain unconvinced. On Monday, 20 May, the Public Investment Corporation (PIC) confirmed its support for the Daybreak Foods board's decision to enter business rescue, describing the process as 'the best path to preserve the company's value and potential, saving approximately 3,000 jobs'. With the company's finances resembling a henhouse after a fox visit, the PIC's R74-million cash injection is meant to keep the lights (and incubators) on while a business rescue practitioner is appointed to hatch a credible turnaround plan. Despite a flurry of official statements, a reconstituted board and the promise of business rescue, hope remains scarce on the factory floor at Daybreak Foods. Thousands of workers, partially paid for April, say this development has done little to lift their spirits. One anonymous worker told Daily Maverick, 'We don't have hope now. Our hope for Daybreak Foods is diminished.' They added that they had received only half of their basic April salary and nothing for their overtime. The worker said the company had not communicated anything about these delays, leaving employees in the dark. They are now awaiting their May salary, which is expected to be paid on Friday, 23 May, since the usual payday of the 25th falls on a Sunday. Another employee echoed this sentiment, saying, 'Things are very bad there. They are not being fully transparent with us, and there is no direct communication, so we do not have hope.' The employee said workers simply wanted the truth — no matter how grim — so they can understand the company's current position and know whether they have a future with it. The PIC, which holds the dual distinction of being both a major shareholder and creditor, has made it clear that Daybreak must be rescued, not just for the sake of the workers, but to 'realise returns for clients and their beneficiaries'. Meet the new board Before the feathers hit the fan, the PIC had already reconstituted Daybreak's board. The new line-up reads like a who's who of agriculture, finance and — crucially — damage control: Dr Cynthia Charlotte Nkuna (retained interim chairperson): A poultry vet with an MBA and a background in biologicals. If anyone can spot a sick chicken — or a sick balance sheet — it's her. Lehlohonolo Andrew Makenete (interim deputy chairperson): Agricultural economist and policy wonk. Tshokolo Petrus Nchocho: Development finance veteran, former CEO of the IDC and Land Bank. Kgampi Jack Bapela (retained): Agro-processing dealmaker. Esethu Ayanda Dazana (retained): Chartered accountant and transformation specialist. Brian Luthuli Mavuka (PIC): PIC's head of finance, because someone needs to keep an eye on the purse. Martinus Philipus de Jonge (PIC): Investment executive and former interim CEO of Daybreak — back for another peck at the problem. The board, together with the PIC, has pledged full cooperation with the business rescue practitioner to implement a 'sustainable turnaround strategy.' How did we get here? Daybreak Foods' decline unfolded over several years, marked by mounting financial strain, management instability, and operational breakdowns. Originally part of Afgri, the company was acquired by a PIC-backed BEE consortium in 2015, with high hopes for transformation and growth. However, by 2017, just two years after the acquisition, Daybreak began facing severe financial difficulties amid increased competition from cheaper imported chicken, governance challenges and operational mismanagement. The PIC assumed full control in 2017, but despite efforts to stabilise the company, including board changes and management reshuffles, Daybreak's liquidity worsened. By late 2024, the company had failed to repay R42-million owed to its largest contract grower and defaulted on a R100-million emergency loan. A requested R250-million bailout was declined by the PIC in early 2025, precipitating the resignation of CEO Richard Manzini and the executive team. This leadership vacuum triggered an operational collapse. Feed deliveries stopped, contracts fell through, and workers and livestock were left stranded. Efforts to shift consumer demand from frozen to fresh poultry were undermined by rising feed costs, avian influenza outbreaks and delayed funding. Animal welfare deteriorated drastically, culminating in the mass euthanisation of more than 350,000 chickens under horrific conditions. The National Council of SPCAs intervened with a court order to halt inhumane culling and enforce adequate feeding of nearly 600,000 starving breeder birds. Workers faced unpaid or partial salaries, forced weekend work without overtime pay and poor communication from management, with protests in early May met by the police using rubber bullets. Leadership instability was rife, with four CEOs in four years, legal battles with security firms, and the abrupt resignation of board chairperson Bojane Segooa in May 2025 after securing a R625,000 payout amid strikes and internal conflict. The crisis has since drawn the attention of the Department of Labour, the Congress of South African Trade Unions (Cosatu) and political parties like the Democratic Alliance (DA), which have called for urgent investigations into governance failures and PIC oversight. As Daybreak enters business rescue with a reconstituted board and renewed PIC backing, the challenge remains to restore financial stability, protect jobs and rebuild trust among workers and stakeholders alike. Daybreak Foods' slow unravelling is a stark illustration of the complex challenges facing state-backed enterprises, where financial pressures, governance lapses and social responsibility converge with profound consequences. The path forward demands transparency, accountability and decisive action to safeguard the livelihoods of workers, the welfare of animals and the stewardship of public funds in South Africa's poultry industry. DM
IOL News
21-05-2025
- Business
- IOL News
PIC backs Daybreak Foods' business rescue plan amid financial crisis
The PIC said that business rescue was the best path to preserve the company's value and potential, saving approximately 3 000 jobs, and importantly, to realise returns for clients and their beneficiaries on their investment. Image: File Banele Ginidza The Public Investment Corporation (PIC) has come out in support of the Daybreak Foods' board of directors' decision to place the company under business rescue. In a statement on Tuesday, the PIC - a major creditor and shareholder of Daybreak Foods - said it was of the firm belief that the company can be rescued and must be rescued. The PIC said that business rescue was the best path to preserve the company's value and potential, saving approximately 3 000 jobs, and importantly, to realise returns for clients and their beneficiaries on their investment. "The successful application to place Daybreak under business rescue paves the way to appoint a business rescue practitioner who will assist Daybreak to assess the extent of disruption to operations and produce a credible turnaround strategy for the business," said the PIC Corporate Affairs. "In this regard, the business rescue practitioner will work closely with the Daybreak 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 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. Next Stay Close ✕ The PIC said it has already undertaken several measures to contribute towards stabilising Daybreak Foods, which included the injection of R74 million in working capital that was initially intended to address the company's immediate liquidity needs. The PIC has also reconstituted the board of directors for Daybreak Foods as part of interventions to stabilise governance and operations, retaining Dr. Cythnia Charlotte Nkuna as interim chairperson to replace Bojane Segooa who resigned with immediate effect after securing payment of R625 000 in board sitting allowances. The PIC bolstred the board with appointment of new members, including Lehlohonolo Andrew Makenete who is deputy chairperson, Tshokolo Petrus Nchocho, chartered accountant Brian Luthuli Mavuka and Martinus Philipus de Jonge from the PIC, respectively. Also retained from the previous board were Kgampi Jack Bapela and Esethu Ayanda Dazana. "The Daybreak Foods board, together with the PIC, will fully cooperate with the business rescue practitioner to implement a sustainable turnaround strategy and plan to stabilise the business and ensure its viability," said the PIC. This development comes as Lakat Chicken, one of Daybreak's suppliers, had approached the Pretoria High Court for a liquidation application to settle an alleged debt of R19.8m. In an official response last week, corporate affairs specialist Nokwazi Ngcongo confirmed that Daybreak Foods was exploring avenues to implement business rescue, pending the active participation and agreement from shareholders. "The board has extensively communicated with the PIC, the company's shareholder, and made numerous requests for funding to support operations, including feed for birds and payment of salaries, and continues to engage the PIC in hope of a positive response," Ngcongo said. Sam Dlamini, secretary general of the Agricultural Food and Allied Democratic Workers Union (ASADWU), said a coalition of labour and other stakeholders would later this week meet with the Daybreak Foods board on the company's strategic direction following the disruptions. Dlamini confirmed that workers at Daybreak had been finally paid their April salaries but were still owed for the month of May, according to the remuneration system used at the company. He said the workers were still at home and only the National Society for Prevention of Cruelty to Animals (NSPCA) was on site handling the stabilisation of the farm in Delmas. Nazareth Appalsamy, NSPCA farm animal protection unit manager, said the entity was still compiling a criminal case against the Daybreak Foods board. This is after the High Court last week extended an interim order for the entity to manage the humanitarian crises at the Daybreak farms where more than 200 000 birds had to be culled after poor management and abandonment resulted in cannibalism. Applsamy said to date, 400 000 birds had been stabilised and were being fed while 200 000 had to be put down. "We will still pursue criminal action because the actions of the board amounted to animal cruelty" Appalsamy said. Visit:
