Audio By Carbonatix
The Minority Chief Whip, Frank Annoh-Dompreh, has stated that the Produce Buying Company (PBC) is experiencing significant financial difficulties.
He said the state-owned Licensed Buying Company (LBC) has struggled to secure funds to pay farmers, with some situations resulting in up to six months of delays.
He disclosed that it is the PBC and other Licensed Buying Companies that obtain bank guarantees to purchase cocoa beans from farmers on behalf of COCOBOD.
Mr Annoh-Dompreh revealed this during the Minority's interaction with farmers in Kunsu on day two of their Ashanti regional tour, which aimed to assess the impact of the cocoa price cut.
He noted that, for a considerable period, the law stipulated that the Ghana Cocoa Board release funds to the Produce Buying Company and other LBCs within a timeframe of 21 days after the companies have sold cocoa to the Board.
According to him, Ghana's history shows that it is only under President Mahama's government that both state-owned and private cocoa buying companies, which had secured loans from banks to purchase cocoa, have been left unpaid for nearly six months.
"PBC has not received payment since October, and as a result, farmers are being informed that there are no funds available when they take their cocoa to purchasing clerks.
"This is an indirect way of telling the farmers that the government is not prepared to purchase their cocoa," Annoh-Dompreh alleged.
The Minority in Parliament has alleged that while funds were released by COCOBOD, they were not used to pay farmers, and they have called for an investigation into the mismanagement of funds.
The Member of Parliament for Ejisu, Kwabena Boateng, also questioned the stance of President Mahama regarding cocoa prices.
He noted that former President Akufo-Addo did not decrease cocoa prices despite the COVID-19 pandemic having a significant adverse effect on economic activities.
"We saw how difficult things were during the COVID-19 period; it was a challenging time for the entire world. Yet, President Akufo-Addo and Dr Bawumia did not adjust cocoa prices downward. So, why are prices being reduced now when circumstances are supposedly more favourable?" Boateng asked, backing calls for the government to reconsider its pricing decision.
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