The Director of Legal Affairs for the National Democratic Congress (NDC), Godwin Edudzi Tameklo, has issued a strong response to recent statements made by the Chief Executive Officer of COCOBOD, Joseph Boahen Aidoo.

The COCOBOD CEO recently announced that, for the first time in three decades, the institution will not secure offshore syndicated loans to finance the purchase of cocoa beans for the 2024/2025 crop season. 

Targeting the purchase of around 650,000 metric tonnes of cocoa beans, COCOBOD stated that it plans to finance the procurement entirely from its internal operations.

• Read also: No offshore syndicated loan for 2024/25 cocoa crop season – COCOBOD declares

In a press briefing, Joseph Boahen Aidoo explained that there is a comprehensive strategy in place to reduce COCOBOD's dependence on high-interest loans from offshore lenders. 

He emphasised that it is no longer financially sensible for COCOBOD to rely on international loans when it has the capability to raise funds locally at more favourable rates.

Despite these assurances, Edudzi Tameklo took to Facebook on Wednesday, August 21, to express his misgivings.

He argued that the New Patriotic Party (NPP) government has mismanaged COCOBOD to the point where it has lost the trust of international financiers. 

According to Mr Tameklo, this has severely compromised COCOBOD's ability to secure funding.

Mr Tameklo further claimed that COCOBOD is now in such a precarious financial position that it cannot even approach local banks for funding. 

He attributed this situation to what he described as gross mismanagement under the current administration.

"(The) Announcement by Joseph Boahen Aidoo that Ghana Cocoa Board has ditched the loan syndication is a deception. It’s actually an admission that NPP government has run down COCOBOD and has lost complete trust with international financiers because of gross mismanagement. COCOBOD cannot even approach local banks for funding. They have defaulted on COCOBILLs. So no bank or another institution would lend to COCOBOD."

"COCOBOD is asking local LBCs to sign offtake agreements with foreign buyers who would provide advance payments to COCOBOD through the signed offtake agreements with LBCs to now finance cocoa purchases," he posted.