A massive debt of approximately GH¢4 billion owed to Licensed Cocoa Buying Companies (LBCs) by the Ghana Cocoa Board (COCOBOD) is placing severe financial strain on operators within the industry.
According to the Chamber of Cocoa Marketers Ghana, the outstanding figure represents payments due for cocoa stock already gathered from farmers and successfully handed over to COCOBOD.
Speaking during a session with the press, Victus Dzah, Chief Executive Officer of the Chamber, revealed that commercial banks are now refusing to approve fresh credit lines for LBCs ahead of the upcoming crop year as a direct consequence of the overdue balances.
“Banks are not ready to lend money to us again… If you go and bring money we also need to get our monies paid… we borrow money to go to the field to buy cocoa, they will pay us cash and then it means that we will borrow money and then they will sit on it again for five months, three months, eight months… it is as good as we don’t even go to borrow the money,” he lamented.
Mr Dzah cautioned that should the state regulator fail to settle the arrears, several buying companies will be unable to deploy purchasing clerks to buying centres to acquire produce from local farmers.
“If they are able to pay us at least we can use those monies to start with and then we can pay our bankers and then our bankers can also open new lines of credit for us to go to the field… but if they don’t pay us how are we going to pay our bankers,” he noted.
To prevent widespread disruption across the supply chain, the Chamber is calling on COCOBOD to publish a clear, definitive settlement schedule prior to the official launch of the new cocoa season.
By: Rainbowradioonline.com/Ghana
