The government has unveiled plans to restructure GH¢5.8 billion in legacy debt owed by the Ghana Cocoa Board (COCOBOD) to the Bank of Ghana and the Ministry of Finance. This move forms part of broader reforms to stabilize Ghana’s vital cocoa sector.
Finance Minister Dr. Cassiel Ato Forson announced the initiative at a press briefing in Accra. He said the government will seek parliamentary approval to overhaul the debt, aiming to restore COCOBOD’s financial health and bolster its balance sheet.
“Government will seek parliamentary approval to restructure approximately GH¢5.8 billion in legacy debt owed by COCOBOD to the Bank of Ghana and the Ministry of Finance,” Dr. Forson stated. “This is part of measures to restore stability to the cocoa sector.”
The restructuring should ease pressures on the cocoa regulator, build investor confidence, and support efforts to revive the industry.
Ending Quasi-Fiscal Activities
Dr. Forson highlighted how COCOBOD’s involvement in road construction and other quasi-fiscal activities has fueled its financial woes by straying from its core mandate.
To fix this, the government proposes a new Cocoa Board Bill that bars COCOBOD from such activities moving forward. The focus will shift squarely to cocoa production, regulation, and marketing, enforcing fiscal discipline.
“Over the years, COCOBOD assumed significant quasi-fiscal responsibilities, particularly in road construction, which has contributed substantially to its current financial challenges,” he noted. “Going forward, COCOBOD must focus strictly on its core mandate — cocoa production, regulation, and marketing.”
Forensic and Criminal Audit
In parallel, the Office of the Attorney General will launch a forensic and criminal audit of COCOBOD’s operations over the past eight years. This will scrutinize financial management and procurement to promote transparency and accountability.
“The Office of the Attorney General will commence a concurrent forensic and criminal audit of COCOBOD’s activities over the past eight years,” Dr. Forson said. “This audit is intended to promote transparency, accountability, and ensure that any financial irregularities are properly addressed.”
Together, the debt restructuring, legislative changes, and audit represent a comprehensive strategy to reposition COCOBOD and safeguard Ghana’s cocoa value chain for the long term.
Story by: Mercy Addai Turkson #ahotorfmonline.com