Stakeholders representing South Africa's public sector pensioners are questioning whether a dedicated Special Investigating Unit (SIU) probe is truly necessary to uncover what happened in the collapse of Daybreak Foods, given the battery of regulatory investigations already underway and the appointment of a new board.
While pension advocate Zirk Gous argues the Public Investment Corporation (PIC) must take direct, internal responsibility for enforcing consequence management rather than relying on external political calls, the Public Servants Association (PSA) maintains that probes into PIC matters by the SIU, FSCA, and Public Protector are already underway and a newly appointed PIC board should be given space to do their work.
The PIC, which controls and invests about R2.69 trillion worth of state workers’ pension funds on behalf of the Government Employees Pension Fund (GEPF), invested around R2 billion in poultry producer Daybreak Foods.
Daybreak is now under business rescue, with a private partner being sought to take over the business. Its collapse has resulted in 1,900 workers losing their jobs and livelihoods, while more than 350,000 starving chickens had to be put down.
Democratic Alliance MP Andrew Bateman has written to President Cyril Ramaphosa requesting that the SIU investigate allegations of maladministration, corruption, conflicts of interest, improper appointments, inflated or fraudulent payments, interference with forensic investigations and failures of oversight at Daybreak Foods and the PIC that may have contributed to the company's collapse.
It includes an investigation into whether anyone improperly benefited from expenditure incurred by Daybreak Foods, whether the PIC adequately discharged its fiduciary and oversight obligations in relation to its investment in Daybreak; and the circumstances surrounding forensic investigations commissioned by Daybreak that were started but subsequently halted before being completed, including whether anyone improperly interfered with those investigations.
Daybreak was established in 2001 and has operations in Gauteng, Mpumalanga, Limpopo, and KwaZulu-Natal. According to the Business Rescue Plan published last year, since its acquisition from Afgri Group by the PIC in 2015, the company has struggled to maintain operational and financial stability. Despite its strategic positioning as a vertically integrated producer, executive mismanagement, poor strategic decision-making, and ineffective financial controls have consistently crippled the business since the PIC's initial intervention.
Zirk Gous, spokesperson for the Association for Monitoring and Advocacy of Government Pensions, said the PIC should launch an internal probe if the allegations have merit.
“If these allegations are factual, I wonder why it is necessary for an external institution or political party to pursue criminal charges and investigations. The first responsibility should lie with the PIC to launch internal investigations and ensure consequence management.”
Gous emphasised that the return of the PIC’s CEO following the lifting of his suspension must mark a turning point, noting that governance failures at the PIC carry systemic risks that extend beyond civil servants.
“The PIC has been in the news for the past few months for all the wrong reasons and they are really not seen to implement consequence management. The funds under management by the PIC from the GEPF is R2.69 trillion, so they have a fiduciary duty toward the GEPF and the owners of the money to act in their best interest, and we do not see that.”
Public Servants Association (PSA) assistant general manager Claude Naiker offered a more cautious stance, welcoming the recent appointment of a fresh PIC board by the Minister of Finance:
“The PSA has always advocated for good and ethical governance by the PIC board. The Minister has acted swiftly by appointing a new board, and the PSA calls for the new board to be given time to rectify the wrongdoings of the previous board.”
Naiker urged patience as statutory oversight bodies wrap up existing probes:
“There is already an investigation by the SIU, the FSCA and the Public Protector. We should allow these processes and investigations to unfold so that perpetrators can be brought to book. The full recommendations of the Mpati Commission must also be implemented.”
In response to questions from The National, the Public Investment Corporation (PIC) would welcome any proclamation for an investigation by the Special Investigating Unit into Daybreak Foods.
The PIC said Daybreak is currently in business rescue, with the PIC supporting all efforts to save the company and preserve value for its clients. We further note that instances of financial misconduct and other irregularities at Daybreak Foods are the subject of a criminal investigation by the Directorate for Priority Crime Investigations (DPCI).
“The PIC fully cooperates with, and actively supports the DPCI investigations by providing documentary evidence and statements to the DPCI, based on forensic investigations initiated by the PIC. The Business Rescue Practitioner and the PIC are cooperating in further forensic investigations in terms of section 417 of the Companies Act, to establish what further civil and criminal actions can be instituted against any party – including any former or current employees, executives, board members, and/or service providers.”
* This story has been updated with the response from the Public Investment Corporation. (20 August 2026)
ntsikelelo.qoyo@nationalmg.co.za