The Department of Employment and Labour has revealed it is engaging with the Public Investment Corporation over concerns about Daybreak
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The Department of Employment and Labour says it is engaging with the Public Investment Corporation (PIC) over concerns about Daybreak Foods' financial troubles and the potential impact on worker benefit fund investments.
According to recent media reports, Daybreak Foods, a poultry producer wholly owned by the PIC, is reportedly facing severe financial difficulties, including mounting debt, which has culminated in the resignation of its CEO Richard Manzini.
In addition to the financial turmoil reports further indicated that the NSPCA reported alarming conditions at Daybreak’s chicken broiler farms, where food shortages have resulted in the deaths or euthanasia of thousands of birds.
In a statement issued to the media on Monday, Department spokesperson Teboho Thejane expressed concern over recent media reports highlighting Daybreak Foods' financial difficulties.
"The Department of Employment and Labour, through both the Compensation Fund (CF) and the Unemployment Insurance Fund (UIF), has noted with concern recent media reports indicating that Daybreak Foods, an entity in which investments have been made via the Public Investment Corporation (PIC), is facing significant operational, financial, and reputational challenges".
Thejane further emphasised that the Compensation Fund (CF) and Unemployment Insurance Fund (UIF) are committed to ensuring that investments made on behalf of workers align with their policies and generate sustainable, long-term returns.
"Our investment principles emphasise rigorous due diligence, sound governance, and effective risk management. We expect all investee companies to uphold the highest standards of financial integrity, operational performance, and corporate governance," Thejane said.
The department also disclosed that it is actively engaging with the PIC to clarify the status of the investment and evaluate any potential impact on the portfolios of both Funds.
"The Department is currently engaging with the PIC to seek clarity on the status of this investment and to assess any potential impact on the portfolios of both Funds. Appropriate measures will be taken to protect the interests of our stakeholders and to ensure accountability".
mthobisi.nozulela@iol.co.za
IOL Business