Latest news with #R74m
TimesLIVE
20-05-2025
- Business
- TimesLIVE
Daybreak Foods placed in business rescue, hopes to save 3,000 jobs
The Public Investment Corporation (PIC), a major creditor and shareholder of Daybreak Foods, says it supports the Daybreak Foods board's decision to place the company in business rescue. The PIC said on Monday it was of the firm belief that the company can be rescued and that business rescue is the best path to preserve the company's value and potential, saving about 3,000 jobs and realising returns for clients and their beneficiaries on their investment. The PIC said the successful application to place Daybreak in 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. The business rescue practitioner will work closely with the Daybreak board. 'The PIC has already undertaken several measures to contribute towards stabilising Daybreak Foods, which includes the injection of R74m in working capital that is intended to address the company's immediate liquidity needs.' Before the company was placed in business rescue, the PIC had reconstituted the board for Daybreak as part of interventions to stabilise governance and operations at the company. Members of the reconstituted Daybreak Foods board are: Dr Cynthia Charlotte Nkuna (retained, interim chair) Lehlohonolo Andrew Makenete (interim deputy chair) Tshokolo Petrus Nchocho Kgampi Jack Bapela (retained) Esethu Ayanda Dazana (retained) Brian Luthuli Mavuka (PIC), and Martinus Philipus de Jonge (PIC) interim CEO of Daybreak Farms. 'The Daybreak Foods board, together with the PIC, will fully co-operate with the business rescue practitioner to implement a sustainable turnaround strategy and plan to stabilise the business and ensure its viability.' TimesLIVE
IOL News
12-05-2025
- Business
- IOL News
Daybreak Foods workers call for management overhaul amid financial turmoil
The National Council of SPCAs (NSPCA) has obtained an urgent court order against Daybreak Foods, compelling the company to cease inhumane culling practices and provide adequate care for hundreds of thousands of breeder birds at risk of starvation and suffering. Image: NSPCA Banele Ginidza Workers at Daybreak Foods' farms have laid down a series of demands that centre on the immediate termination of Chief People Officer Tshepo Yvonne Mosadi's contract, alongside a comprehensive overhaul of the company's board and management structure. This demand comes as the Public Investment Corporation (PIC) on Friday injected a further R74 million into the embattled farming establishment in a bid to pay for outstanding salaries for April, buy chicken feed supplies, and for specific essential operational expenses. The R74m, which is part of the R250m financial support requested by Daybreak in February, was initially earmarked for capital expenditure. On Friday, the Daybreak Workers Union issued a letter detailing their demands and expressed deep concerns over past management practices. "To avoid suffering the same fate, we are eliminating that risk, and avoiding the new cash injection falling into the same hands that have already proven to be incapable and incompetent to run and manage the establishment," read the letter, which was seen by Business Report. Workers also voiced multiple grievances, including the accounting methods related to overtime, delays in payment of May salaries, and inadequate provisions for Personal Protective Clothing (PPE). Further, there were calls for revisions in production pauses to ensure better working conditions, alongside critical changes to the slaughter culture that could impact both worker safety and animal welfare. Mosadi, a nominee for the Chief Human Resources Officer Awards in 2023, has faced backlash, accused by workers of being disconnected from their plight. Sources indicate that the PIC, which recently authorised a R100 million emergency fund known as the "Sunday Account," aims to address the immediate liquidity needs that have left workers and the company in a precarious situation. This emergency fund, confirmed on Thursday and Friday, is a part of the overall financial package being arranged by the PIC. 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 ✕ Though the PIC on Friday announced the decision to provide immediate financial support to Daybreak Foods, it reiterated that the board and management of Daybreak Foods remained responsible and accountable for the company's operations and finances. "The PIC is strengthening the board and assisting it to strengthen management to help to bring stability to the company and to resume normal operations," said the PIC. "Daybreak's leadership is tasked to develop and implement a turnaround strategy and a credible turnaround plan to ensure long- term sustainability and growth, including how the company intends to avert job losses and safeguard the welfare of the livestock." Meanwhile, the National Council of SPCAs (NSPCA) on Saturday obtained an urgent court order against Daybreak Foods, compelling the company to cease inhumane culling practices and provide adequate care for hundreds of thousands of breeder birds at risk of starvation and suffering. This followed a catastrophic welfare emergency currently unfolding at two of Daybreak's breeder farms in Bela-Bela and Mookgopong. An estimated 594 000 birds are at immediate risk of starvation, suffering from cannibalism, injuries, and prolonged neglect due to insufficient feeding and inhumane culling practices. According to a whistleblower report, the upheaval at the company stems from Daybreak's attempt to remove the PIC as mandate holder and appoint a private entity specialising in investors mandates. The report revealed that the PIC acts only as an investor mandate holder on behalf of these shareholders, not as a direct shareholder with the Government Employees Pension Fund (GEPF), Unemployment Insurance Fund (UIF), and the Compensation Fund (CF), each holding 33.3% of the entity. The complications have disrupted normal governance, with no Annual General Meetings (AGMs) convened since 2021 and a shocking turnover of four CEOs in merely four years — a clear reflection of governance failures. A whistleblower report has drawn attention to inadequate board oversight, failure to exercise diligent oversight of executive decisions, absence of consequence management enabled unchecked misconduct, deficiencies in fiscal management created vulnerabilities for mismanagement.
IOL News
30-04-2025
- Business
- IOL News
Nearly 5,000 eThekwini Municipality employees fall behind on municipal payments
The Durban City Hall serves as the seat of local government, the eThekwini Municipality. Almost 5000 City employees are in debt with R80m owed for rates and services. Picture: Leon Lestrade Independent Newspapers Image: Leon Lestrade Independent Newspapers Close to 5000 of the eThekwini Municipality's 25 000 workforce, including councillors and senior managers, have fallen behind in paying their municipal accounts. This is according to a financial report of the municipality analysing consumer debt. Their debt has grown by close to R6 million in the last three months and is now standing at approximately January and March this year, the report indicates that staff debt increased from about R74m to R80m. The challenges of defaulting employees have been an ongoing issue for the municipality. The Mercury reported last year on the extent of the problem, highlighting that senior managers, even those at executive levels, owed the municipalityfor rates and services. These revelations come amid outrage by city ratepayers at the double-digit tariff increases that could be implemented in July, provided the city's draft budget is approved. The budget is currently out for public comment. The same report outlining the employee debt details ballooning consumer debt, showing that the current city debt is now at R35 billion, a staggering increase of more than R7bn from January 2024 to January 2025. It showed that 4988 employees owe an average of R78,044 561.81, a number that has risen from the previous month. The report indicated that 54 councillors were in arrears in March; the same number was reported in February, while 52 were in arrears in January. However, the total debt has been growing over the same period. In January, the councillors owed R1.8m, and this has now increased to report said staff and councillors in arrears are subject to all credit control processes, including disconnections, redlining with credit bureaus, and legal processes. Furthermore, staff members in arrears for more than 90 days are subject to salary deductions. Although this is an effective tool for collecting from staff in arrears, the salary deduction is limited to 25% of net salary, which is sometimes insufficient to cover the amount owed, hence the continuous increase in staff debtors. 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 ✕ IFP councillor Jonathan Annipen expressed concern that thousands of officials owe such a significant debt to the city. 'It is not unusual for employees to have their accounts in arrears, and there are by-laws that deal with these scenarios. It is a poor showing when the employees of the city fail to pay for their rates and services,' Annipen said. 'These are tight economic times, and everyone is facing difficulties. This should also speak to the tariffs that are coming in the next financial year, and maybe we ought to align ourselves not to increase those tariffs in light of the kind of scenarios we are seeing at the moment.' He said if Eskom offered electricity directly to consumers, they would pay much less.
