The former Chief Executive of COCOBOD, Dr. Stephen Kwabena Opuni, has publicly refuted claims by his successor, Joseph Boahen Aidoo, regarding the financial status of the institution he led for four years during the Mahama administration.
Dr. Opuni dismisses Mr. Aidoo’s assertion that he inherited empty coffers in 2017.
Three days ago, Mr. Aidoo insisted that COCOBOD was facing significant financial challenges when he assumed office in January 2017.
However, Dr. Opuni, who has remained silent since leaving office seven years ago, has now challenged Mr. Aidoo to publish the audited financial report of COCOBOD to provide documentary evidence that there was no money.
There are also claims of a handing-over note from Dr. Opuni to Mr. Aidoo, which paints a different picture from what the current COCOBOD boss suggests. Dr. Opuni believes this will enable the public to ascertain the true state of affairs at COCOBOD at the time.
“It is trite knowledge that before you secure any loan, you need to show your audited financial statement; therefore, if Joseph Boahen Aidoo wants Ghanaians to know that he inherited a broke institution, he should make COCOBOD’s audited financial statement for the 2016/2017 financial year public to back his claims,” Dr. Opuni stated in a release issued by his office on Thursday, June 13, 2024.
Mr. Aidoo, in an interview with Accra-based Joy FM on June 12, 2024, claimed, “They bought about 600,000 metric tonnes before we came in. With cocoa, the peak harvest period is October, November, December, and January. So, within the first quarter of the season, from October to December 2016, the previous administration bought over 600,000 metric tonnes. When we assumed office, there was no money; meanwhile, we had to buy cocoa till the end of the season from January to September (2017).”
On June 13, 2024, Dr. Opuni countered Mr. Aidoo’s claim using his own words. He explained that COCOBOD secured a $1.8 billion syndicated loan to cover COCOBOD’s activities from October 2016 to September 2017 cocoa crop season. Dr. Opuni noted that COCOBOD sold forward over 600,000 tonnes of cocoa at $2,993.60 per tonne, which was used as collateral to secure the loan.
“Just multiply $2,993.60 by the over 600,000 stated by Mr. Boahen Aidoo, and you would realize that as of January 2017, COCOBOD had already bought enough cocoa from our cocoa farmers to pay off the $1.8 billion syndicated loan COCOBOD secured,” Dr. Opuni stated.
Available records show that even after buying over 600,000 metric tonnes between October and December 2016, License Buying Companies (LBCs) still had some of the monies COCOBOD had advanced to them, which they were expected to use to buy more cocoa.
During his tenure from January 2014 to early January 2017, COCOBOD secured syndicated loans at about 1.5% interest for each loan. Dr. Opuni highlighted that COCOBOD always had the option to return to the syndicated banks for an additional $200 million loan if more cocoa needed to be bought, which was more prudent than taking loans from local banks at much higher rates.
“It was prudent to take a loan at 1.5% instead of going for a loan from the local banks at 30% or more. It is, therefore, strange that the current management of COCOBOD under Boahen Aidoo, instead of taking advantage of the $200 million option from the syndicated loan banks, always resorts to the local banks and the Central Bank. This is nothing short of gross financial mismanagement,” Dr. Opuni emphasized.
Dr. Opuni asserted that from January 2014 to early January 2017, COCOBOD never took loans from the Central Bank or local banks to undertake any COCOBOD activity. However, under Mr. Aidoo’s administration, COCOBOD has been taking loans from the Central Bank and local banks even after securing syndicated loans.
Apart from 2017, when Mr. Aidoo admitted taking a 2 billion Ghana Cedi loan from the Central Bank, the administration has continued to take more loans from local banks and the Central Bank in subsequent years at higher costs, leading to COCOBOD’s indebtedness to local banks amounting to about 20 billion Ghana Cedis.
For instance, while Dr. Opuni secured syndicated loans at 1.5%, the current COCOBOD management under Mr. Aidoo took a syndicated loan of $800 million in 2013/2024 at 8%, reflecting a lack of confidence in COCOBOD’s financial credibility.
According to Reuters News Agency, COCOBOD is unable to deliver 350,000 tonnes of cocoa to their clients abroad, who have contracts with COCOBOD at $2,600 per tonne. The current world price of cocoa is above $9,000 per tonne, indicating that Ghana stands to lose about $6,000 or more per tonne of cocoa, potentially resulting in a loss of around $2 billion.
Furthermore, cocoa production under Mr. Aidoo’s management continues to decline, adding to the challenges faced by COCOBOD. Dr. Opuni’s revelations and challenges to the current administration highlight the need for transparency and accountability in managing the nation’s vital cocoa industry.