Invoices reveal anomalies in the millions Daybreak Foods paid to PIC-linked law firm

Reports of conflicts of interest surrounding the law firm chosen by the Public Investment Corporation (PIC) to investigate wrongdoing at the troubled poultry producer Daybreak Foods are not new. The Sunday Times revealed these ties to then PIC company secretary, Bongani Mathebula, as far back as 6 June 2021.

Mathebula’s connection to the firm dates back to September 2017, when she was placed on precautionary suspension over allegations of leaking confidential board documents – charges she denied and was later cleared of before her reinstatement. During that suspension, attorney Pule Malahlela approached her to join his new practice, PJM Attorneys, as an associate. Mathebula claimed she severed ties with Malahlela upon returning to the PIC, despite remaining on the firm’s paperwork.

That same firm – which subsequently operated as Malahlela & Co and billed Daybreak under the name Black-White – was nevertheless appointed to investigate corporate misconduct at Daybreak, placing a practice linked to the PIC’s own executive at the centre of the probe.

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SAA acting CEO Matshela Seshibe responds: Daybreak not linked to suspension

August 21, 2026

DA calls for SIU probe

The fallout has led the Democratic Alliance (DA) to demand a formal Special Investigating Unit (SIU) probe and criminal investigations into the poultry producer, with the firm’s exorbitant legal fees forming a central pillar of the party’s complaint to the President.

Forensic investigations into Daybreak Foods uncovered massive financial irregularities regarding the firm’s billing. A report by Nexus Forensic Services revealed that Malahlela’s entities were paid approximately R123.9-million over two years. Within this massive payout, investigators flagged R39.9-million as completely unlinked to any invoice and R8.8-million in suspected duplicate payments. Hourly rates charged exceeded approved limits and lacked proper supporting documentation.

Getting the story straight

According to whistleblower reports and other evidence seen by Daily Maverick, Malahlela’s appointment was initiated by the Daybreak board, recommended by its then secretary, Kgabo Mapotse, and formally approved by its then board chair, Lerato Nage, in January 2021.

According to Daybreak’s chief financial officer, Vangile Masisi, the appointed attorneys reported directly to Mapotse, who was responsible for personally confirming and signing off on the services for which the attorneys billed.

When Daily Maverick asked Matshela Seshibe, who was appointed as Daybreak CEO in May 2022, about the PIC-funded poultry producer’s legal services procurement, he distanced himself from the appointments, saying they significantly predated his arrival.

“Malahlela and Company Attorneys/Black-White: This appointment also substantially predated my tenure,” Seshibe wrote in response to questions. “Fundudzi [report] records that the Daybreak Foods Board initiated the appointment, that Company Secretary Kgabo Mapotse recommended the appointment, and that then-Board Chair Lerato Nage approved it in January 2021.”

He further asserted that “Mapotse subsequently issued the appointment letters, including a further appointment in May 2021. The report further records that CFO Masisi stated that Malahlela reported directly to Mapotse and that Mapotse confirmed the services for which the attorneys billed. The report contains no finding that I appointed Malahlela or approved or signed off its invoices or payments.”

Seshibe vacated his office in December 2022, and the wheels truly came off Daybreak’s operations in early 2025, which forced an intervention via a business rescue plan almost 12 months ago.

Senior business rescue practitioner (BRP) Tebogo Christopher Raymond Maoto relied on multiple forensic reports (including Deloitte, JGL, and Nexus) to establish the plan, painting a damning picture of legal procurement:

“Further irregularities were identified in the legal services provided by Malahlela Attorneys, who were paid approximately R123.9 million in a two-year period, with R39.9-million unlinked to any invoice and R8.8-million suspected to be duplicate payments. Hourly rates charged exceeded approved limits and documentation was lacking…

“The report recommended that Daybreak’s Board consider reporting these transactions to the South African Police Service (SAPS) for investigation. The BRP will assume this responsibility and will keep affected parties abreast of the development of the criminal proceedings. The BRP will also consider instituting a civil claim for the recovery of the monies paid to Malahlela Attorneys.”

A truly tangled web

When Daily Maverick reviewed a cache of ledger statements and tax invoices, it revealed that Malahlela Attorneys segmented their services into several distinct files or matter descriptions to justify the R123.9-million payout.

A highlight is the “Civil Recoveries” line item, described as preparing legal opinions and civil summonses against former Daybreak executives and contractors (such as Boas Seruwe, Cobus van Niekerk, Matsela Bantsi, Mathapelo More, Votelwa Majola, and EM Transport) to recover lost funds. On the surface, this appeared to be a legitimate effort, but it was used as a catch-all billing folder, generating massive individual invoices of R1,044,168.10 and R841,225.00.

Then there’s the “Criminal Proceedings Support” item – ostensibly for assisting forensic investigators, reviewing statements, and preparing reports for the SAPS and the Hawks. Millions of rands were billed to this end, including a R1,046,500 invoice in August 2022 that contains word-for-word page copies of the Civil Recoveries files.

Details in the fabric

The Nexus forensic audit uncovered severe financial red flags, flagging R8.8-million in suspected duplicate payments and a further R39.9-million completely unbacked by invoices. But it is only when reviewing individual invoices in the paper trail that the exact mechanics become clear.

A comparison of a tax invoice for Civil Recoveries and one for Criminal Proceedings, both dated 17 August 2022, reveals that Malahlela Attorneys billed for identical tasks, hours, and dates across both claims – simply swapping or duplicating fee-earner names to double the fee.

The cost of recovery

It is important to make clear that the PIC does not own Daybreak directly; it acts as an asset manager making investment decisions on behalf of its public-sector clients.

Those clients are the Government Employees Pension Fund, Unemployment Insurance Fund (UIF), and the Compensation Fund (CF). Since 2017, these three entities have held equal 33.33% equity stakes in the company.

Daybreak’s funding and oversight anchor directly in the PIC’s Isibaya Fund – a developmental vehicle bound by a dual mandate to deliver commercial financial returns while simultaneously driving positive socioeconomic impacts, chief among them preserving the poultry producer’s more than 3,000 jobs.

Reviewed independently, the forensic trail strongly supports the DA’s and BRP’s assertions of gross financial inflation and irregular procurement.

Black-White/Malahlela Attorneys operated as a highly paid legal tool for Daybreak’s Board, consuming R123.9-million of GEPF/UIF-backed capital on internal litigation and questionable advisory fees.

More than R39.9-million remains completely unaccounted for by invoices, heavily reinforcing the BRP’s decision to pursue civil recovery and refer the matter to the SAPS.

For the record, Seshibe’s commissioned Fundudzi investigation report documented that Daybreak Foods paid Malahlela Attorneys R101,502,312.68. DM