COCOBOD rejects Minority claims of rejected loans and financial losses

The Ghana Cocoa Board (COCOBOD) has robustly refuted allegations made by the minority in parliament, which claimed that international banks had, for the first time in 32 years, rejected the board’s request for a prepayment loan to finance cocoa purchases.

In a press release dated Thursday (22 August), COCOBOD dismissed the Minority’s assertions as “falsehoods, inaccuracies, and misrepresentations” concerning the current state of the cocoa sector.

“The assertion by the Minority Caucus that the International Banks have rejected the Ghana Cocoa Board’s request and that COCOBOD was ‘chased away’ from the market is false,” the statement declared.

“This is so because syndicated banks submitted term sheets in response to COCOBOD’s earlier Request for Proposals (RFP) for consideration.”

COCOBOD’s statement, signed by its chief executive, Joseph Boahen Aidoo, further clarified that while the board has plans to gradually reduce reliance on syndicated loans, existing contracts still require completion through such financial arrangements.

“These transactions have necessitated a discussion with financial institutions, and nothing in this process indicates, to us, a lack of confidence in COCOBOD’s creditworthiness from these financial institutions,” Aidoo asserted.

Addressing further allegations from the minority regarding financial performance, COCOBOD categorically denied claims of continuous losses. The board labelled the assertion that it recorded a GHC4.2 billion loss in 2023 as “highly uninformed.”

“COCOBOD’s 2023 accounts audited by Ernst & Young (EY) show a profit of GHC2.3 billion during the 2022/2023 crop season, marking a significant turnaround from the previous year’s performance,” the statement revealed.

“This financial success is a demonstration of the effectiveness of the strategic initiatives undertaken by COCOBOD, including cost-cutting measures, improved operational efficiency, and targeted investments in key areas of the cocoa sector.”

The regulator also countered accusations of financial concealment and declining production, reaffirming its commitment to transparency and sector growth.

Further details on these matters are available in the full press statement below: