The Minority Chief Whip, Frank Annoh-Dompreh, has raised concerns over the financial difficulties facing the Produce Buying Company (PBC), warning that cocoa farmers are being left in limbo.
Speaking during the Minority’s engagement with farmers in Kunsu on the second day of their Ashanti regional tour, which aimed to assess the impact of the recent cocoa price cut, Mr. Annoh-Dompreh said the state-owned Licensed Buying Company (LBC) has struggled to secure funds to pay farmers, with some payments delayed for up to six months.
He explained that the PBC and other LBCs obtain bank guarantees to purchase cocoa beans from farmers on behalf of COCOBOD. Historically, the law required that COCOBOD release funds to the PBC and other LBCs within 21 days after sales to the Board.
“PBC has not received payment since October, and as a result, farmers are being informed that there are no funds available when they take their cocoa to purchasing clerks,” Mr. Annoh-Dompreh said. “This is an indirect way of telling the farmers that the government is not prepared to purchase their cocoa.”
He alleged that while funds were released by COCOBOD, they were not used to pay farmers, and called for a full investigation into the alleged mismanagement of cocoa funds.
Kwabena Boateng, Member of Parliament for Ejisu, also questioned President John Dramani Mahama’s approach to cocoa pricing. He contrasted the current situation with the COVID-19 pandemic period, when former President Nana Akufo-Addo and Vice President Mahamudu Bawumia did not reduce cocoa prices despite economic challenges.
“We saw how difficult things were during the COVID-19 period; it was a challenging time for the entire world. Yet, President Akufo-Addo and Dr. Bawumia did not adjust cocoa prices downward. So, why are prices being reduced now when circumstances are supposedly more favourable?” Boateng asked, backing calls for the government to reconsider its pricing decision.
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