Chief Executive Officer of the Ghana Cocoa Board, COCOBOD, Dr Randy Abbey, has revealed that the institution is facing the most severe financial crisis in its nearly 80 year history, following years of accumulated debt, contractual exposures, and procurement inefficiencies.

Speaking on The Point of View on Channel One TV, Dr Abbey said that when he assumed office at the end of 2024, COCOBOD was technically insolvent, with its liabilities exceeding its assets for the first time since the board was established.

According to him, COCOBOD was burdened with a total debt of GH¢32.9 billion and a negative equity position of about GH¢3.8 billion, a situation he contrasted with 2016, when the board recorded a positive equity of about GH¢1.8 billion.

“Year end 2024. That is when I took over what I inherited. I mean, COCOBOD had a debt of GHC32.9 billion. COCOBOD had a negative equity of GHC3.8 billion. At the end of 2016, COCOBOD had a positive equity of about GHC1.8 billion.

“2024 year end, negative equity of GHC3.8 billion, almost GHC3.9 billion, which presupposes that COCOBOD’s liabilities were more than its assets, but close to GHC4 billion. The first time in the history of the 79-year-old company. Next year, 2027, COCOBOD will be 80 years old. So this is what we inherited.”

Dr Abbey attributed a major portion of the financial burden to cocoa road contracts awarded by the board, disclosing that COCOBOD is exposed to road contracts valued at about GH¢26 billion.

“So this is what we inherited. We inherited a cocoa road exposure of GHC26 billion.”

He, however, clarified that only GH¢4.4 billion of this exposure is currently captured in the debt figures, as it relates to certified works awaiting payment.

“So only GHC4.4 billion of this exposure was part of the debt because the GHC4.4 billion were certificates that were sitting at our cash office, but the GHC26 billion were road contracts that COCOBOD had awarded. But the GHC32.9 billion includes only GHC4.4 billion of these GHC26 billion contracts awarded.”

Beyond road contracts, Dr Abbey also highlighted procurement challenges particularly in the continuous purchase of jute sacks despite large volumes remaining uncleared in stock resulting in avoidable expenditure running into millions of dollars.