Acting CEO Randy Abbey says balancing the books will take time as Cocobod drowns in debt

The Acting CEO of the Ghana Cocoa Board (COCOBOD), Dr. Randy Abbey, spoke about the institution's financial struggles. He said balancing the books is a long journey that has already started.

On PM Express Business Edition on Joy News, he discussed COCOBOD’s serious financial issues. He mentioned high debt levels, pending obligations, and legacy contracts.

“Our first task was to address these issues,” he stated. “We project that by year four, we should be fine.” He added they need to adjust their projections due to cedi appreciation.

Dr. Abbey revealed COCOBOD’s total liabilities are nearly $33 billion. However, this amount may decrease based on local currency performance. “I need to recalculate because dollar components might go down,” he explained.

He clarified misconceptions about the Cocoa Roads project funding. “When we mention the Cocoa Roads’ $21 billion, people think it’s part of the $33 billion,” he said. “It is not; only $4.4 billion is related to certificates at our cash office.”

He emphasized that most Cocoa Roads contracts either lack execution or certificates raised for payment. “We are focusing on rationalizing these contracts,” he noted.

Dr. Abbey described daily financial pressures at COCOBOD as relentless. He mentioned companies owed money frequently visit his office seeking payment.

“I deal with solicitor letters and court issues every day,” he said, referring to creditors chasing them for payments.

He disclosed that COCOBOD owes agrochemical suppliers over $400 million and many contractors have gone unpaid for years. “Some have waited four years; others two or three years,” he stated.

Additionally, Dr. Abbey revealed a troubling contract from December 2024 for jute sacks worth $48 million.

“Even in December, previous administration signed contracts,” he noted regarding jute sacks imports.

“They issued an irrevocable letter of credit for $48 million in December 2024.” He explained that over 110,000 jute sacks had not been cleared in three years despite this contract being awarded.

He highlighted how the financial structure means payment will occur regardless of current conditions.

“Once bills of lading are presented, the company will receive payment,” he explained about the irrevocable letter of credit process.

Despite these challenges, Dr. Abbey believes there is a way forward for COCOBOD.

“We must redo our books considering cedi appreciation,” he concluded, emphasizing restructuring and re-evaluation are essential for restoring stability.