Parliament has summoned the Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Joseph Boahen Aidoo, over his outfit’s indebtedness to cocoa farmers through their respective Licensed Buying Companies (LBC) for the period of the 2020/21 cropping season.
The summons follows a statement made on the floor of Parliament by MP for Buem, Kofi Adams who drew the attention to how COCOBOD’s indebtedness to farmers in his constituency and other parts of the country is negatively affecting their livelihoods.
Kofi Adams statement was titled: “The Plight of Cocoa Farmers in the Buem Constituency Despite $1.3 billion loan facility to the Ghana Cocoa Board.”
According to Mr Adams, reports from his constituency and other constituencies in the cocoa-growing regions has it that, cocoa farmers have not been paid by LBCs for their cocoa purchased in the last two months even though they are in the third month of the main cocoa season. He revealed that cocoa farmers were owed over GHS 11 million.
“The Ghana Cocoa Board secured a $ 1.3 billion-dollar facility to purchase cocoa beans for 2020/21 crop season. This facility was to assist Cocoa board make an upfront payment for cocoa beans that it purchases from cocoa farmers.
“Most of the cocoa farmers in Ghana depend mainly on the proceeds of cocoa sale to fend for themselves and their families and most importantly to prepare new farmlands for the next farming season.”
Hon. Kofi Adams, Buem MP.
The Buem MP urged the House to intervene to get the Ghana Cocoa Board to release funds to LBCs to enable them pay the farmers for the cocoa beans purchased, during the period under review, arguing that it was Parliament which approved the syndicated facility for the purpose of purchasing cocoa for the 2020/21 cropping season.
At a news conference, the Public Affairs Manager of COCOBOD, Fiifi Boafo, downplayed the urgency of the situation when he reacted to the concerns. He said cocoa farmers were being paid but admitted that the flow of cash to them has not been the very best.
“I think he [Kofi Adams] is being a bit hyperbolic in how he portrays the situation but no matter how he describes the situation, it is still a legitimate concern.
“We admit that there is the need for us to quickly clear some of the debts in order for the license buying companies to be able to serve the cocoa farmers,” Mr. Boafo said
Fiifi Boafo, Public Affairs Manager of COCOBOD
Mr. Boafo revealed that, of the GHS 1.3 billion COCOBOD has to pay cocoa farmers, GHS 1.1 billion has been withdrawn to clear the debts. He added that some arrears have been cleared in the last three weeks and the expectation is that the last drawdown will be done coming weeks in order to clear the huge arrears.
Notwithstanding, the Buem MP still expects the COCOBOD CEO to appear in Parliament to address the concerns.
