The Member of Parliament for the North Tongu Constituency and Chairman of the Assurances Committee of Parliament, Hon. Samuel Okudzeto Ablakwa has strongly criticized the Ghana Cocoa Board (COCOBOD) for what he describes as severe mismanagement of the cocoa sector, which he claims has led to a significant decline in production and financial instability.
In a passionate address, Hon. Ablakwa accused COCOBOD of not being transparent and forthright with the Ghanaian people regarding the true state of the cocoa industry.
He highlighted a recent statement by the Minority Leader, Hon. Dr. Cassiel Ato Forson, which pointed to a failed attempt by COCOBOD to secure a $1.5 billion loan on the international market.
“They went to the international market; they were looking for $1,500,000,000, but because of the mismanagement of COCOBOD and the bankrupt state of this economy, nobody was interested in that request for a proposal. They couldn’t meet their target”.
Honourable Samuel Okudzeto Ablakwa, Member of Parliament for North Tongu Constituency
Hon. Ablakwa lamented that this was the first time in Ghana’s history that the demand for its cocoa syndicated loan had not met expectations.
“Ghana cocoa, the premium cocoa; in the whole world, our cocoa is the best choice, most celebrated, most preferred. The whole world always oversubscribed our request for loan. Look at our history—a 32-year history. Always oversubscribe. But now the sector has been so mismanaged that confidence has totally been eroded.”
Honourable Samuel Okudzeto Ablakwa, Member of Parliament for North Tongu Constituency
Decline in Cocoa Production
Drawing attention to the alarming decline in cocoa production, Hon. Ablakwa noted that under former President John Dramani Mahama’s administration, Ghana achieved a production high of 969,000 metric tons for the 2016/17 crop year.
However, he pointed out that the current government is struggling to produce even 400,000 metric tons, underscoring the dramatic downturn in productivity.
The North Tongu Member of Parliament did not stop at production declines; he also detailed the significant financial losses COCOBOD has incurred over the years.
He cited figures to illustrate the worsening financial health of the organization, asserting that COCOBOD under the previous National Democratic Congress administration used to be so profitable, questioning the increasing losses now.
‘In 2017, COCOBOD made a loss of GHS 395,000,000. In 2018, it was GHS 78,200,000 losses. 2019 saw losses of GHS 320,600,000 and in 2020, GHS 426,000,000 losses. 2021 was GHS 2,400,000,000, and 2022 was GHS 3,200,000,000 losses; and in 2023, the losses soared to GHS 4,200,000,000. Cumulatively, they have made losses of GHS 11,000,000,000.”
Honourable Samuel Okudzeto Ablakwa, Member of Parliament for North Tongu Constituency
Cocoa Syndicated Loans Brouhaha
The MP’s concerns extended beyond financial losses and production declines. He criticized the inconsistency in policy communication between COCOBOD and the Ministry of Finance.
He highlighted a recent contradiction, where the COCOBOD CEO claimed that the organization would not seek syndicated loans from the international market this year, breaking a 32-year tradition.
However, this claim according to Hon. Ablakwa was later refuted by the Finance Minister. Citing a Bloomberg report, Hon. Ablakwa quoted the Finance Minister stating that COCOBOD was indeed still negotiating for syndicated loans, albeit at a reduced target of $600 million from the initial $1.5 billion.
“What kind of mess is this? The COCOBOD CEO says we are not going for a cocoa syndicated loan this year, but then the Finance Minister dispels the claim, contradicting the COCOBOD CEO’s initial statement. The Ghanaian people deserve to know the truth. This lack of consistency and credibility in policy statements is damaging our international reputation and undermining investor confidence”.
Honourable Samuel Okudzeto Ablakwa, Member of Parliament for North Tongu Constituency
The MP’s remarks reflect growing concerns among stakeholders in Ghana’s cocoa sector, who are alarmed by the sector’s declining fortunes and the apparent lack of coherent strategy from COCOBOD and the government.
Hon. Ablakwa’s statements are a call for greater accountability and transparency from COCOBOD to restore confidence and ensure the sustainability of Ghana’s cocoa industry, which has long been a vital pillar of the nation’s economy.
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