The Acting CEO of Ghana Cocoa Board (Cocobod) has described the awarding of a $48 million jute sack contract in December 2024 as a clear act of recklessness that has deepened the financial woes of the Board.

Dr. Randy Abbey, speaking on Joy News’ PM Express Business Edition on Thursday, June 5, expressed shock and frustration at how Cocobod was managed under the Akufo-Addo administration.

“I’m sure you’ve heard about the jute sacks,” he told host George Wiafe.

“They issued an irrevocable letter of credit, $48 million, in December of 2024, when the paper documents show that they had imported jute sacks and over 110,000 have not been cleared over three years.”

Despite the existing stockpile of jute sacks that remained unused, Cocobod still went ahead to award a contract for 80,000 bales, valued at $48 million.

“Yet, they still decided to award a contract for 80,000 bales of jute sacks,” Dr. Abbey stressed.

“And issued an irrevocable letter of credit in December of 2024 on our account at the Ghana International Bank in London.”

According to Dr. Abbey, these bales have already started arriving, and under the terms of the irrevocable LC, the bank must release payment once the bill of lading is presented.

“Once the bill of ladings are presented to us and given to the bank, by the structure of the irrevocable LC, the $48 million will be given to the company,” he revealed. “That is how this place was run.”

Dr. Abbey, who has been at the helm only recently, painted a grim picture of Cocobod’s current financial state.

He revealed that the Board owes agrochemical suppliers over $400 million.

The total debt stock stands close to $33 billion, although that figure might adjust slightly due to recent cedi appreciation.

“The last time I checked, that debt was close to $33 billion,” he said. “We owe agrochemical suppliers over $400 million.”

He clarified widespread confusion over the Cocoa Roads project. Many believe that the GH¢21 billion Cocoa Roads cost is included in the $33 billion debt.

“No, it is not,” he said. “It is only $4.4 billion, which are certificates raised and sitting at our cash office.” He explained that this amount represents work executed and certified for payment.

“The others have to do with the contracts that have been given, but they’ve not raised certificates yet or not executed them.”

He disclosed that Cocobod is currently undergoing a rationalisation exercise.

“We’re trying to see which of them we can cancel, which of them can be offloaded to the Ministry, which of them can be varied,” he said.

Dr. Abbey offered a stark, personal account of his day-to-day experience.

“When you got here, you waited for about an hour. All those you saw leaving my office were companies that we owed. The banks are chasing them, and they have also come here to chase us,” he said.

“Every day I’m dealing with either solicitor letters or court issues, and it’s about people that we owe.”

The situation, he said, is so dire that Cocobod still has unpaid obligations dating back four years.

“We owe people for four years, for three years, for two years, for a year. Even in December, they were signing contracts. And even January, you know they were doing…”

When asked if Cocobod can balance its books anytime soon, Dr. Abbey admitted it would take time.

“Our first task was to look at how we’re going to deal with it, and the projections we made was that by year four, we should be fine,” he stated.

“Now we have to redo the books given the cedi appreciation.”

The Acting CEO raised serious questions about procurement practices at Cocobod, particularly the issuance of the irrevocable LC despite existing inventory and liquidity challenges.

Dr. Abbey told Joy News, “That is how this place was run.”