The 2021 Auditor General’s Report has charged Ghana Cocoa Board (COCOBOD) to engage the Ministry of Finance to recover ¢2.25 billion that the government owed the cocoa regulator as of September 30, 2020.
This was because of supply of cocoa beans to Genertec International Corporation (GIC), government’s revenue support on producer price of cocoa and excess export duties paid by the COCOBOD for GIC on cocoa beans exported.
The report also noted that COCOBOD has relatively huge loans portfolio totalling ¢12.301 billion as of the end of the 2019/2020 financial year.
“We urged management to deploy and implement effective plans and strategies that would lead to the reduction of the Board’s [COCOBOD] indebtedness within the medium to long term”.
It further said “we noted during our review of the 2019/2020 approved budget statement that, COCOBOD expended an amount of ¢230.70 milion on the principal repayment amount of a 10-year loan with Bank of Ghana (BoG) which was not included in the approved budget for 2019/2020 financial year. We advised Management to ensure that all the Board’s activities are adequately provided for in its estimates and ensure that it operates within its approved budget”.
It also said its review of the recovery of seed funds from Licence Buying Companies (LBCs) revealed that management could not recover seed funds and accrued interest totalling ¢47.024 million from LBCs for more than four cocoa seasons contrary to the provisions in the law.
“We urged management to recover the amount from the banks that guaranteed these facilities for the companies failing which the Board should pray the court to lift the veils of incorporation of these defaulting companies to demand the total indebtedness from the Directors and personalities behind these companies”.
Cocoa Marketing Company
The report identified that the company’s receivable aging report revealed that a total of $179.572 million debt was overdue as of 30th September 2020.
“To effectively manage the recovery of the debts, we recommended to Management to institute innovative measures to collect the debt”.
Quality Control Company Limited (QCC)
The report noted that QCC invested an amount of¢500,000 in a vehicle loan investment account at the UMB Investment Holdings Limited (UMB IHL) contrary to the investment policy of Cocoa Board.
It further recommended to Management to avoid placing the Company funds in similar investment houses.
Cocoa Research Institute of Ghana (CRIG)
The report said the lack of effective control over the utilisation and accountability of monies lead to unretired imprest totaling ¢878,586 by November 30, 2020.
It therefore recommended that the amount be converted into advances against the officers and recovered from their salaries.
Latest Stories
-
Playing with Andre Ayew a big honour – Elisha Owusu
20 mins -
GMWU mounts pressure on Ministry of Lands and Natural Resources to terminate license of FGR
31 mins -
Address smuggling of canned and PET packaged beverages into Ghana – GRA told
45 mins -
Roma sack Daniele De Rossi after four games of season
46 mins -
SA star sees success under Maxwell Konadu’s guidance
50 mins -
Tomatoes in Season: A Nutritional, Economic, and Food Security Asset in Ghana
58 mins -
BoG directs banks to submit strategies aimed at reducing financial fraud
1 hour -
Prostate Health and Nutrition: How Local Foods Can Help
2 hours -
500,000 Herbalists unlicensed – Regulatory Council begins clampdown
2 hours -
Scotland agrees to host Commonwealth Games in 2026
3 hours -
Full Text: NDC’s petition to EC after demo over voter’s register
3 hours -
Dear Osagyefo God, can I talk to you about my country?
3 hours -
Eddie Nketiah scores first Palace goal in win over QPR
3 hours -
Managing Gestational Diabetes: Key Insights for Expecting Mothers
3 hours -
Fair Wages and Salaries Commission responds to NCCE division’s planned strike action
3 hours