Amidst concerns of delayed payments, Produce Buying Company (PBC), has appealed to COCOBOD to fast-track payment processes and resolve ‘systematic issues’ that have long plagued the industry.
The appeal comes at a time where concerns have been raised about COCBOD’s ability to ensure timely monetary settlements, coupled with reforms to ensure the restructuring of PBC’s operations, to regain its position as the largest cocoa procurement company in the sector.
At a press briefing organised held in Accra, Managing Director, Seidu Yonye emphasised that because Ghana’s cocoa purchasing system is “liquidity-intensive and time-sensitive,” any delays in funding creates a vacuum.
The management of PBC noted that the goal of this appeal is to “resolve the systematic issues of delayed payments to reduce the incentive for arbitrage and smuggling”.
To restore financial sanity, PBC is not just asking for speed; they also revealed the establishment of accountable payment systems to aide smooth disbursements.
“Transparent payment system accessible to COCOBOD and Banks. This architecture will allow stakeholders to track fund drawdowns and utilisation, cocoa deliveries and entitlements as well as real-time arrears.
According to the MD, this “receivables-based structure will allow banks to finance cocoa purchasing and monitor the supply chain with far greater confidence”.
Beyond the balance sheets, the MD’s statement focused heavily on farmer security. By streamlining payments, PBC aims to eliminate non-functional buyers who often exploit liquidity gaps to shortchange farmers.
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Source: www.myjoyonline.com
