COCOBOD’s Finances in Crisis, Says CEO Randy Abbey.
Dr. Randy Abbey, Chief Executive Officer of the Ghana Cocoa Board.
Accra, Ghana - Ghana’s cocoa regulator is facing one of the most difficult financial periods in its nearly eight-decade history, according to its chief executive.
In an interview monitored by DM Media Online, Dr. Randy Abbey, Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), has disclosed that he inherited a company with liabilities exceeding its assets by nearly GH¢4 billion, marking, he said, the first time in the 79-year history of the institution that it has recorded negative equity.
“At the start of 2016, Cocoa Board had a positive equity of about GH¢1.8 billion,” Dr. Abbey stated. “By the end of 2024, we are looking at negative equity of about GH¢3.8 billion, almost GH¢3.9 billion. That presupposes that Cocoa Board’s liabilities were more than its assets by close to GH¢4 billion.”
COCOBOD, which will mark its 80th anniversary next year, is now navigating what the CEO described as a complex landscape of debt exposures. According to Dr. Abbey, the Board inherited cocoa road contract exposures valued at GH¢26 billion. However, only GH¢4.4 billion of that amount is included in the GH¢32.9 billion total debt figure, as those certificates were already sitting at the cash office.
The remaining GH¢26 billion, he explained, relates to road contracts that had been awarded but were not fully captured within the consolidated debt figure.
Beyond road contracts, the CEO also highlighted procurement practices related to “duty sacks” used in cocoa operations. He stated that COCOBOD had continued procuring the sacks without clearing outstanding consignments, even as arrears accumulated at the ports.
According to Dr. Abbey, over 150,000 bales remained uncleared over a three-year period. Yet in 2024, the Board ordered an additional 80,000 bales valued at approximately $48 million.
He explained that these procurements were conducted on a Cost, Insurance and Freight (CIF) basis and were backed by irrevocable letters of credit. Once suppliers had fulfilled the shipping requirements and presented the bills of lading, the Ghana International Bank in London was obligated to release payment.
“They signed these contracts around April, and on the 3rd of December 2024, they issued their irrevocable LC to cover this,” Dr. Abbey said, adding that once the documentation is completed, the bank must pay the $48 million to suppliers.
The disclosures provide a snapshot of the financial obligations currently confronting the cocoa sector regulator, a critical pillar of Ghana’s economy. COCOBOD plays a central role in cocoa marketing, farmer support, and infrastructure development, making its financial stability vital to the broader agricultural value chain.
Read Also
