The Ghana Cocoa Board has denied claims by the Center for Socioeconomic Studies (CSS) that it has failed to pay farmers for their produce.
The CSS said in a statement Tuesday that COCOBOD has either refused, neglected or failed to allocate funds to the Licensed Buying Companies (LBCs), especially Produce Buying Company (PBC) as mandated for cocoa purchases.
“We categorically deny any such claims as wholly untrue and therefore cannot be one that was arrived through a meticulous investigation,” COCOBOD stated in a release Wednesday.
COCOBOD said PBC received an amount of GHS121million for payment of cocoa delivered within October and November this year. It also said some LBCs have not paid farmers because of their own internal challenges.
Read full statement
RE: COCOBOD STARVING COCOA FARMERS AND LBCs OF CASH – CSS AGRIC DESK
The attention of the Ghana Cocoa Board (COCOBOD) has been drawn to a supposed research conducted by a group known as the Center for Socioeconomic Studies (CSS) which has received wide media publication.
The said report indicates that, through several calls from the cocoa farmers and further investigations by the CSS, it was revealed that COCOBOD has either refused, neglected or failed to allocate funds to the Licensed Buying Companies (LBCs), especially, Produce Buying Company (PBC) as mandated for cocoa purchases.
We wish to state the following:
- We categorically deny any such claims as wholly untrue and therefore cannot be one that was arrived through a meticulous investigation.
- PBC which is the only state owned LBC was allocated the biggest seed fund, which was in excess of GHC390million. In addition, PBC received an amount of GHC121million for payment of cocoa delivered within October/November this year. The released amount is far in excess of what is required by PBC for their cocoa purchase within the period.
- A meticulous investigation or an enquiry would have revealed to CSS that the issue in question was not borne out of the refusal or failure on the part of COCOBOD to release funds for the purchase of cocoa.
- Funds have been made available to all qualified LBCs who have provided bank guarantees. COCOBOD’s policy of protecting public funds by advancing seed funds against bank valid guarantees remain unchanged and will continue to be in force.
- It has come to our notice that some LBCs through their own internal challenges have not been able to pay cocoa farmers even though they have received seed funds from COCOBOD. We are engaging all such LBCs to ensure that they immediately get their challenges resolved and offer prompt payment to the farmers to avoid the transfer of their organizational challenges to the farmers who have no hand in creating the problem they face.
COCOBOD wishes to assure all farmers that it has performed its responsibility as expected by releasing funds to all the LBCs including PBC and therefore any problem encountered is not from COCOBOD but regardless we shall facilitate to ensure that they are paid.
ISSUED BY PUBLIC AFFAIRS DEPARTMENT
Have your say
More Business Headlines
- Foreign MoMo operators must have 30% local participation to secure license – BoG
- Special Prosecutor, CHRAJ to assist PIAC to fight misuse of petroleum funds
- KPMG appoints new Senior Partner
- Gov’t gives boost to livestock industry with 'Rearing for Food and Jobs' programme
- Standard Chartered, GCX sign MoU to support farmers
- Premier picks Health Insurance Brand of the Year 2018
- DVLA, Guinness Ghana roll out new drink-drive module
- Access Bank unveils new logo; targets unbanked population through financial technology
- Anglogold engineer calls for training for artisanal miners
- Video: Alhassan Andani makes startling revelation on banking crisis
- Banking crisis: We are out of the woods –Stanbic’s Alhassan Andani
- Why the economy grows but jobs are not – Stanbic MD has answers
- Gold gains to near highest since 2013
- African Engineers converge in Tunis for conference on Food Security
- CBG pays out GH¢2bn to depositors, MFIs from bonds