The Minority in Parliament has accused the Minister of Food and Agriculture and the Chief Executive Officer of COCOBOD, for US$650million being part of the first tranche of the US$1.3billion cocoa syndicated loan for the 2018/2019 crop year.
The group strongly suspects that the money has been deposited into secured investments in a couple of banks in the country and earning interest whilst the ordinary cocoa farmer who is expected to benefit is suffering.
In a statement issued on Monday, November 26, 2018 and signed by the Ranking Member of the Finance Committee, Cassiel Ato Forson, the Minority contends that recent findings from the work of the Center for Socioeconomic Studies (CSS) revealed that COCOBOD has either refused, neglected or failed to allocate funds to the Licensed Buying Companies (LBCs), especially, the Produce Buying Company (PBC) as mandated for cocoa purchases which has resulted in delayed payments to cocoa farmers.
The findings of the CSS, they further noted, was corroborated by a statement issued by the PBC Limited on November 22, 2018, which indicated about GHS104million of cocoa taken-over receivables (CTORs) due the LBCs has not been paid.
“As part of measures to ensure that LBCs have adequate funds to promptly pay cocoa farmers, part of the first tranche of US$650million of the US$1.3billion facility was supposed to be used to finance the smooth operations of LBCs, especially, the Produce Buying Company. The rationale for this policy direction is to ensure that the ordinary cocoa farmer is paid on time. The Minority is however, very well disappointed that the funds have not been used for the intended purpose but rather diverted into areas that will not benefit the cocoa farmer in anyway”, the statement released by the NDC group in part read.
Worried by the development, the Minority wants the Food and Agriculture Minister to immediately end the misapplication of the syndicated loan and revert to the original purpose for its acquisition.
They also want the CEO of COCOBOD to “do the right thing” by releasing all the allocations due the LBCs, especially, the PBC, as soon as possible to ensure that cocoa farmers are paid on time.
