The Democratic Alliance has uncovered new evidence of state capture at Daybreak Foods, a poultry company that has been facing financial difficulties. According to the DA, Daybreak Foods paid at least R2.97 million to a law firm in 2022 for "analysis of state capture and legal advice". The DA's deputy spokesperson on budget affairs, Andrew Bateman, confirmed that the party had submitted previously unknown invoices related to state capture at Daybreak Foods to the presidency for referral to the Special Investigating Unit.
The invoices show that lawyers investigated whether Daybreak Foods or the Public Investment Corporation (PIC) was involved in the findings of the state capture commission. Bateman expressed concern that a poultry company would pay lawyers to investigate its exposure to state capture, as well as the exposure of its shareholders. He stated that there is supporting evidence that confirms the authenticity of these records. The DA is calling for a full investigation into who gave the instruction for this work and who benefited from it.
According to Bateman, Fundudzi Forensic Services analyzed invoices from Malahlela Attorneys and identified corresponding memorandum numbers and invoice entries for state capture. One of the invoices shows that R1.063 million was charged to Daybreak Foods. Six people who allegedly charged fees each worked 90 time units over the same nine days to study the state capture report and transcripts, followed by another 20 time units each to summarize chapters. Bateman described the number of hours worked as "excessive".
The DA's concerns are further fueled by the fact that Fundudzi was allegedly asked to suspend parts of its investigation after the PIC appointed Nexus Forensic Services to investigate overlapping matters. Bateman stated that it is worrying that Fundudzi's report was finalized without completing the outstanding work. Daybreak Foods' business rescue plan mentions four forensic and governance investigations conducted between 2022 and 2024, but does not mention Fundudzi.
The business rescue plan does mention that Nexus found that around R123.9 million was paid to Malahlela Attorneys, including R39.9 million that could not be linked to invoices. Bateman questioned what happened to the invoices compiled by Fundudzi, whether Nexus or the business rescue practitioners received them, and whether the allegations of state capture were investigated and what the findings were.
The DA is calling on the Special Investigating Unit to recommend a full investigation into the matter. Bateman stated that nearly 1,900 workers lost their jobs, while billions of rand from pensioners and workers were exposed to risk. He emphasized that they deserve to know who was responsible for Daybreak Foods' collapse, what happened to the evidence, and whether anyone tried to prevent the truth from coming to light.
The presidency has confirmed that the DA's request has been referred to the Special Investigating Unit for evaluation and a recommendation to President Cyril Ramaphosa. The DA is urging the SIU to investigate who gave the instruction for this work and who benefited from it, and whether anyone within Daybreak Foods or the PIC interfered with investigations or tried to protect those responsible.
Key points
- The Democratic Alliance has submitted new evidence of state capture at Daybreak Foods to the presidency for referral to the Special Investigating Unit.
- Daybreak Foods paid at least R2.97 million to a law firm in 2022 for "analysis of state capture and legal advice".
- The DA is calling for a full investigation into who gave the instruction for this work and who benefited from it.
