Daybreak practitioners consider recovery of alleged R135 million

DELMAS — Daybreak Foods’ business rescue practitioners are considering approaching the National Prosecuting Authority’s Asset Forfeiture Unit (AFU) to pursue the possible recovery of about R135 million linked to alleged unlawful activities, as investigations into suspected financial misconduct continue.

According to the company’s August 2026 business rescue report, the proposed recovery comes amid 17 ongoing internal investigations and about 10 criminal cases.

However, the report does not establish whether all the investigations are directly linked to the alleged R135 million.

Daybreak Foods’ senior business rescue practitioner, Tebogo Maoto, told the Highveld Chronicle that the internal investigations had not yet been concluded.

He said criminal investigations were continuing and that the business rescue team was cooperating with the relevant authorities.

The Public Investment Corporation (PIC) confirmed that it was cooperating with the Directorate for Priority Crime Investigation (DPCI), commonly known as the Hawks, by providing documentary evidence and statements arising from forensic investigations it had initiated.

PIC senior specialist for media relations Sekgoela Sekgoela said the corporation and the business rescue practitioners were conducting further investigations under section 417 of the Companies Act to determine whether additional civil or criminal action could be taken against former or current employees, executives, board members and service providers.

The PIC said it supported efforts to rescue Daybreak Foods and preserve value for its clients.

Asked about the appointment of a strategic equity partner, the corporation referred the publication to the business rescue practitioners for an update.

The newspaper also sought comment from the Daybreak Foods workers’ committee, the business rescue practitioners and the AFU. No responses had been received by the time of publication.

The proposed recovery does not mean the funds have been recovered or that wrongdoing has been proven, as investigations remain ongoing.