Purchase of cocoa beans: PBC, COCOBOD in ‘dispute’ over outstanding payment

Purchase of cocoa beans: PBC, COCOBOD in ‘dispute’ over outstanding payment
Source: Ghana | JoyBusiness | JAD
Date: 27-11-2018 Time: 09:11:51:am

The Produce Buying Company, (PBC) has disputed claims by COCOBOD that it has released enough funds for the purchase of cocoa beans for the 2018/2019 crop season.

A statement signed by the Chief Executive Officer of PBC, Kofi Owusu Boateng said, “We wish to put on record that PBC has actually purchased more cocoa than the seed fund given by COCOBOD could purchase.”

The statement added, “We have since secured Seed Fund of GHC390 million from Cocobod and so far received Cocoa Taken-over Receivables (CTORS) of GHC81 million in the current season. The amount has been used to purchase about 62,000 tonnes of cocoa,”

PBC said it is aware of the difficulties being encountered in certain cocoa purchasing areas in respect of the trend of payment for cocoa beans to farmers and added it “is working closely with our bankers to secure additional bank guarantees to enable us to access more funding from COCOBOD to pay for all credited stocks from our loyal farmers.”

Read the full statement from PBC

PBC Limited (PBC) is aware of the difficulties being encountered in certain cocoa purchasing areas in respect of the trend of payment for cocoa beans to the farmers.

PBC has the widest geographical presence and infrastructure and are operating in most remote cocoa growing areas that no other Licensed Buying Company (LBC) operates from.

We have since secured Seed Fund of GHC390 million from Cocobod and so far received Cocoa Taken-over Receivables (CTORS) of GHC81 million in the current season. The amount has been used to purchase about 62,000 tonnes of cocoa.

Meanwhile, our purchases report for week 6 to Cocobod shows that pBC has purchased a total of 67,567 tonnes of cocoa, the difference of which is yet to be paid for.

We wish to put on record that PBC has actually purchased more cocoa than the Seed Fund given by Cocobod could purchase contrary to what cocobod sought to portray in their statement.

PBC is working closely with our Bankers to secure additional bank guarantees to enable us to access more funding from Cocobod. This would enable PBC pay for all credited stocks from our loyalfarmers.

Besides, it is important to state that quick turnaround of seed fund is very crucial in the business. As at today, PBC has submitted CTORs of GHS104 million to Cocobod which remain unpaid. We are liaising with Cocobod to ensure prompt payment of CTORs and once they are paid on time, it should go a long way to address the current issues at hand.

We take this opportunity to assure all our key stakeholders, including our cherished farmers and banks that despite the unfair and unethical competitive practices by some LBCs, the company and other indigenous LBCs are frantically making arrangements to seek audience with the Regulator to address these matters urgently.

We wish to assure all our loyal farmers and all stakeholders that with the support of Cocobod, all farmers will be paid their money as soon as possible.


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