By Michelle van der Spuy
The R74 million Daybreak Foods received in an attempt to normalise the company’s operations is only a temporary solution to its much larger problems, says Jacques Peacock, spokesperson for the National Council of SPCAs (NSPCA).
After thousands of chickens on Daybreak Foods’ farms died of starvation or had to be culled, an emergency payment of R74 million was made to the company to pay workers’ salaries and buy feed for the chickens.
According to Netwerk24, this emergency financing comes from the three state funds – the State Pension Fund, which is managed by the Public Investment Corporation (PIC), the Unemployment Insurance Fund and the Compensation Fund – that are invested in the company.
Peacock says only time will tell whether this money will be available quickly enough on the ground. “Money in a bank account will not solve the current crisis. The cannibalism is still going on. Once there are wounds, the chickens will continue to peck at them. The emergency payment is a bandage on a much bigger wound.”
At the end of April the National Council of SPCAs (NSPCA) had to intervene for the second time this year on Daybreak Foods’ premises near Delmas in Mpumalanga. About 200 000 starving chickens were culled over two days.
The company’s board of directors gave the NSPCA permission on 1 May to cull all the chickens, as it had no money to buy feed. Ultimately, more than 350 000 chickens were culled and more than 500 000 were moved to other farms.
Peacock says it is impossible to say how many chickens are still left on Daybreak Foods’ premises. He does say there are not supposed to be any more broiler chickens. There are apparently still breeding chickens, but there are plans to reduce these chickens.
The NSPCA has since obtained a temporary interdict preventing the company from bringing in any new chickens. The NSPCA previously indicated it intends to file a case of animal neglect and abuse against the board of Daybreak Foods.
According to Peacock, this charge has not yet been filed, as its inspectors are still busy compiling their dossier.
PIC washes its hands
The PIC expressed its dismay in a statement about the culling of thousands of chickens and the cannibalism on Daybreak Foods’ premises.
According to the PIC, the board and management of Daybreak Foods are responsible for the company’s operations and finances, but it says it will continue to support Daybreak Foods and has provided capital so that the situation at the company can be normalised.
“The PIC is in urgent discussions with its clients, the board of Daybreak and other stakeholders to find a solution that will protect the value of the company’s assets and, more importantly, jobs.”
According to the statement, the PIC’s intervention must be consistent with its clients’ investment mandates, as well as with the requirements for internal corporate governance and approval processes.
“Daybreak’s immediate needs are short-term working capital, the improvement of its board and management team, as well as the establishment of a credible and realistic strategy to turn the company around.”
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