Government has announced plans to restructure about GH¢5.8 billion in legacy debt owed by the Ghana Cocoa Board (COCOBOD) to the Bank of Ghana and the Ministry of Finance (Ghana) as part of sweeping reforms to stabilise the cocoa sector.
Speaking at a press briefing in Accra, Finance Minister Cassiel Ato Forson said government will seek parliamentary approval to restructure the debt in order to restore COCOBOD’s financial health and improve its balance sheet.
“Government will seek parliamentary approval to restructure approximately 5.8 billion cedis in legacy debt owed by COCOBOD to the Bank of Ghana and the Ministry of Finance as part of measures to restore stability to the cocoa sector”, he said.
According to him, the restructuring is expected to ease pressure on the cocoa regulator, strengthen investor confidence and support broader reforms aimed at reviving Ghana’s cocoa industry.
Ending quasi-fiscal activities
Dr. Forson explained that road construction and other quasi-fiscal expenditures have over the years contributed significantly to COCOBOD’s financial challenges, as the Board undertook responsibilities beyond its core mandate.
To address this, government is proposing reforms under a new Cocoa Board Bill which will prohibit COCOBOD from engaging in quasi-fiscal activities going forward, including road construction.
The Minister stressed that the objective is to refocus COCOBOD strictly on cocoa production, regulation and marketing, while restoring fiscal discipline to the institution.
“Over the years, COCOBOD assumed significant quasi-fiscal responsibilities, particularly in road construction, which has contributed substantially to its current financial challenges.”
“Going forward, COCOBOD must focus strictly on its core mandate — cocoa production, regulation and marketing”, he stated.
Forensic and Criminal Audit
In a related move, Dr. Forson disclosed that the Office of the Attorney General will begin a concurrent forensic and criminal audit of COCOBOD’s activities over the past eight years.
The audit will examine the Board’s financial management and procurement decisions as part of efforts to ensure accountability and transparency within the cocoa sector.
“The Office of the Attorney General will commence a concurrent forensic and criminal audit of COCOBOD’s activities over the past eight years.”
“This audit is intended to promote transparency, accountability and ensure that any financial irregularities are properly addressed.”
Government maintains that the debt restructuring, legislative reforms and forensic review together form a comprehensive strategy to reposition COCOBOD and secure the long-term sustainability of Ghana’s cocoa value chain.
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Source: www.myjoyonline.com