Dr Seidu Jasaw, the Deputy Ranking Member of the Cocoa and Agric Affairs Committee and Member of Parliament for Wa East, is challenging recent statements made by the CEO of the Ghana Cocoa Board (COCOBOD). Dr. Jasaw believes the CEO’s portrayal of the Board’s financial situation is misleading, arguing that the reality is far from what has been presented to the public.

Joseph Boahen Aidoo Chief Executive of Cocobod, told a media briefing that the Board had decided to finance the purchases domestically.

Ghana Cocobod says it will not raise cocoa syndicated loan for beans purchases in the 2024/25 season, which is expected to open on September 1.

In a strongly worded statement, Dr. Jasaw countered the CEO’s claims, highlighting that COCOBOD had already floated a request for proposals (RFP) seeking $1.5 billion in financing as early as June this year. He pointed out that this action contradicts any suggestion of a recent shift in the Board’s financial strategy.

“The CEO’s statements are misleading,” Dr. Jasaw remarked. “The facts clearly show that COCOBOD has been searching for external financing for months. The RFP from June is solid proof of this.”

Dr. Jasaw went on to criticize COCOBOD’s efforts to secure financing through syndicated loans, stating that these attempts have largely fallen short. According to him, this failure has driven the Board to turn to local traders for the needed funds, a move that he sees as a sign of poor financial management.

“They’ve tried to secure funds through syndication without success,” Dr. Jasaw explained. “That’s why they’re now negotiating with local traders to raise the money needed for the cocoa sector. This isn’t a policy change, it’s a desperate measure.”

Dr Jasaw’s remarks come at a crucial moment for Ghana’s cocoa industry, a vital part of the national economy. With COCOBOD struggling to secure sufficient financing, there’s growing concern about how this might affect the sector, especially the livelihoods of cocoa farmers.

His comments have reignited debate over how COCOBOD is being managed, particularly in terms of its financial strategies. Industry stakeholders and policymakers alike are now closely monitoring the situation, waiting to see how the Board will respond and what steps will be taken to address the financial challenges facing the cocoa industry.

As of now, COCOBOD has not officially responded to Dr. Jasaw’s statements. However, with the increased scrutiny, likely, the Board will soon have to provide more clarity on its financial strategy and the status of its ongoing negotiations.

By: Adil Fuseini