The Minority Leader, Cassiel Ato Forson has described the Ghana Cocoa Board's (COCOBOD) decision not to borrow from foreign banks as contrived and face-saving.

In a statement issued on Wednesday, August 21, the Minority Leader noted that it is a tactic deployed to hide the fact that COCOBOD is no longer credit-worthy.

“The announcement by COCOBOD that it has taken a bold decision not to borrow from foreign banks to finance cocoa purchases after 32 years is false, unmeritorious, contrived and face-saving,” portions of the statement said.

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The Chief Executive Officer of COCOBOD, Joseph Boahen Aidoo announced that, for the first time in three decades, COCOBOD 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, explaining that there is a comprehensive strategy in place to reduce COCOBOD's dependence on high-interest loans from offshore lenders.

But Dr Ato Forson claims that COCOBOD was chased away from the market because it is no longer creditworthy, lacks credibility and is unable to produce enough cocoa to meet its contractual obligations.

“Clearly, the banks came to the conclusion that out of the projected production of 650,000 metric tonnes of cocoa for the 2024/2025 crop year, which is doubtful, 250,000 metric tonnes will be used to service existing rolled-over contracts, leaving only 400,000 metric tonnes to honour COCOBOD’s obligations for the 2024/2025 crop year. This raised the ability to pay questions for the banks, hence their refusal to participate,” he added.

He insists the 32-year-old tradition, which has consistently cushioned and provided Ghana’s economy with the most reliable foreign exchange to support the Ghana Cedi, has been destroyed by the Akufo-Addo/Bawumia government.

He noted that the government under the Akufo-Addo-Bawumia leadership has recorded huge losses amounting to over GHS11 billion for seven consecutive years, noting that they recorded losses of 395 million in 2017; 78.2 million- in 2018; 320.6 million - in 2019; 426 million - 2020; 2.4 billion – 2021; 3.2 billion - 2024 2022; and 4.2 billion – 2023.

He further stated that Ghana’s cocoa sector is in crisis, and needs urgent attention, competent management and a new direction.