The Ghana Cocoa Board (COCOBOD) is grappling with severe financial challenges, including a staggering $400 million debt owed to agrochemical suppliers.
According to Dr. Randy Abbey, the CEO of COCOBOD, the company’s financial woes are a result of years of mismanagement.
Speaking on TV3’s Hot Issues, Dr. Abbey revealed that COCOBOD’s debt profile stands at almost 33 billion Ghana cedis, with some debts dating back four years.
He explained that the $400 million owed to agrochemical suppliers includes cases where goods have not been delivered.
“In some cases, these agrochemicals have not reached our stores, but the suppliers have done their part by delivering them to the port and issuing the bills of lading,” Dr. Abbey said. “Once that happens, COCOBOD is responsible for clearing the goods and paying for them, whether they’re cleared or not.”
The CEO also highlighted issues with over-ordering and stock mismanagement, particularly with regards to jute sacks. Despite having a surplus of tens of thousands of jute sacks in stock and unclaimed at the ports, previous management continued to order new shipments worth tens of millions of dollars.
“In December 2024, COCOBOD even issued an irrevocable letter of credit worth $48 million for 80,000 more bales, despite having over 110,000 unclaimed at the port,” Dr. Abbey said, describing the financial decisions as nonsensical for a company in COCOBOD’s financial state.
The National Investigations Bureau (NIB) is currently probing the whereabouts of over 200 containers of agrochemicals and jute sacks, which may have been lost or mismanaged.
Dr. Abbey assured that COCOBOD is working to restore financial discipline, reduce unnecessary spending, and recover from years of mismanagement.
“We are focused on getting the finances of COCOBOD in order,” Dr. Abbey emphasized. “These are financial decisions that don’t make sense for a company in this condition.”