Minister of Finance, Dr. Cassiel Ato Forson, has linked the financial difficulties faced by COCOBOD to what he refers to as the indiscriminate awarding of contracts by the previous administration, which lacked any identified funding sources.
In an interview conducted on Friday, November 14, Dr. Forson indicated that the current management of COCOBOD has inherited arrears amounting to GH¢32 billion, a liability he asserts cannot be settled within a year due to the limited resources available to the institution.
He clarified that COCOBOD, similar to any state agency, is accountable for the payment of contracts it awards, stressing that the Finance Ministry cannot take on liabilities it did not incur. He pointed out that previous decisions to award contracts without adequate financial support have placed the institution in a challenging fiscal situation.
“When COCOBOD awards a contract, it is responsible for paying the contractors, not the Finance Ministry. The prior government awarded contracts indiscriminately, without any means to finance these contracts.
“The CEO of COCOBOD has inherited arrears totaling GH¢32 billion. He cannot settle this amount in a single year due to insufficient resources. COCOBOD is unable to borrow because of its balance sheet, so how is it expected to make these payments?”
Dr. Forson emphasized that the weakened balance sheet of COCOBOD has rendered it impossible for the institution to secure loans to alleviate its financial burdens. He contended that this situation leaves the management with no feasible options for addressing the substantial arrears in the near term.
Compounding the issue, the Minister disclosed that COCOBOD currently has over 3,000 containers of jute sacks stranded at the Tema Port, materials he indicated will not be needed for at least the next five years.
He characterized this as additional evidence of procurement excesses that have exacerbated the agency’s financial responsibilities.
