Juaboso Lawmaker Kwabena Mintah Akandoh has sharply criticized the Ghana Cocoa Board (COCOBOD) for its poor cocoa production performance.
In his remarks, Akandoh condemned COCOBOD’s track record, particularly in light of the organization’s recent move to sever its reliance on loans.
His comments followed concerns raised by the Minority in Parliament about COCOBOD’s financial stability.
The Minority alleged that international banks had rejected COCOBOD’s request for a loan to purchase cocoa for the 2024/2025 crop season.
According to the Minority, this rejection reflects a significant erosion of confidence in COCOBOD’s current management.
Dr. Cassiel Ato Forson, the Minority leader, criticized COCOBOD’s management, attributing the loan rejection to mismanagement and poor financial decisions.
Historically, COCOBOD has depended on offshore syndicated loans to finance cocoa bean purchases, but this year’s rejection suggests a waning trust in the organization’s financial oversight.
Joseph Boahen Aidoo, CEO of COCOBOD, recently announced that for the first time in 30 years, the organization will not secure offshore syndicated loans for the 2024/2025 cocoa season.
Instead, COCOBOD plans to finance the procurement of approximately 650,000 metric tonnes of cocoa beans through its internal resources.
The Minority expressed concern that this development could have severe implications for Ghana’s cocoa sector, a vital component of the national economy.
They warned that insufficient funding might hinder COCOBOD’s ability to meet its cocoa purchasing targets, potentially adversely affecting cocoa farmers and the broader economy.
In their statement, the Minority urged the government to address the root causes of COCOBOD’s financial difficulties.
They called for reviewing current management practices and implementing measures to restore confidence in international financial institutions and ensure the cocoa sector’s stability and strength.
The statement also highlighted a dramatic decline in cocoa production, noting that production has fallen from 969,000 metric tonnes in the 2016/2017 crop year to just over 400,000 metric tonnes for the 2023/2024 season.
This drop and alleged mismanagement have reportedly impaired COCOBOD’s ability to fulfil its contractual obligations.
