Pulse.com.gh logo
Go


Warning Get bank guarantees or else…..-COCOBOD to local processing companies

We want them to pay up their debt. So we encourage them to go for bank guarantees, if we are to deal with them in the future.

  • Published:
CEO, Stephen Opuni play

CEO, Stephen Opuni

The Ghana Cocoa Board has charged local cocoa processing companies to acquire bank guarantees for  future purchases of beans or risk a halt in supply.

This comes in the wake of revelations by COCOBOD, last week, that 5 local cocoa processing companies owed it a total sum of $ 250 million dollars. This  compelled COCOBOD to take drastic measures to halt the continued supply of cocoa beans to the companies to save the board from going bankrupt.

The move is likely to affect more than 6,000 permanent and casual workers of the companies and their outsource service providers across the country.

Speaking to  journalists in Accra last week, head of  public relations at the Ghana Cocoa Board, Noah Amenya said “ The fact is that we want to encourage local marketing companies to enter the business of adding value to cocoa. But not at the expense of the operations of COCOBOD. We want them to pay up their debt. So we encourage them to go for bank guarantees, if we are to deal with them in the future. These guarantees will ensure that COCOBOD recoup our monies back when we supply local companies with cocoa.”

Five out of the 10 indigenous cocoa processing companies in the country owe the Ghana Cocoa Board (COCOBOD) $250 million in unpaid bills under the Old Beans Supply Agreement. The amount owed COCOBOD ranges from $3 million to more than $50 million per company since 2010.

The companies are Plot Enterprise Ghana, Afro Tropical, Real Commodities, West African Mills Company (WAMCO) and the Cocoa Processing Company (CPC).

Under the Old Beans Supply Agreement, companies buying from COCOBOD neither needed to pay upfront nor get a guarantor.

The companies were at liberty to lift the produce, process for sale and later pay COCOBOD its due

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Investment banks in Ghana Top 5 investment banks in Ghana and why you...bullet
2 Banking Crises Joe Jackson urges BoG to ‘rate’ banks to restore confidencebullet
3 Salaries In 2018 Here are the dates public workers will be paid in 2018bullet
4 Duncan Amoah Fuel prices up by 2%; COPEC calls for dialogue on pricingbullet
5 Tax Policy Gov't weighs in on controversial MoMo taxbullet
6 Unibank Collapse Shareholders of uniBank unhappy with leaked...bullet
7 Banking In Ghana Stranded customers of First Allied Savings...bullet
8 How to create a verified PayPal account Learn how to...bullet
9 UT Banks Collapse “I’m saddened by the turn of events” –...bullet
10 Education Top 5 private high schools in Ghana...bullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 Former Capital Bank staff grills pork for survivalbullet
3 Support Finance minister buys Kantanka carbullet
4 Plane Crash Starbow suspends operations following plane crashbullet
5 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
6 Money Alert Meet Africa's richest womanbullet
7 New Discovery Ghana discovers new mineral, lithium in...bullet
8 Bozoma Saint John 10 quotes from Uber top official,...bullet

Business