Minority Leader Cassiel Ato Forson has labeled the Ghana Cocoa Board’s (COCOBOD) decision to refrain from borrowing from foreign banks as a strategic maneuver to cover up its dwindling creditworthiness.

In a statement released on August 21, Forson described the move as a tactic to obscure COCOBOD's current financial instability.

“The announcement by COCOBOD that it has taken a bold decision not to borrow from foreign banks to finance cocoa purchases after 32 years is false, unmeritorious, contrived and face-saving,” portions of the statement said.

Joseph Boahen Aidoo, CEO of COCOBOD, has announced that for the first time in 30 years, the board will not seek offshore syndicated loans to fund the purchase of cocoa beans for the 2024/2025 season.

COCOBOD plans to finance the procurement of about 650,000 metric tonnes of cocoa beans entirely through its own resources.

The board emphasized that this approach is part of a broader strategy to reduce reliance on high-interest loans from international lenders.

However, Dr. Ato Forson has criticized this decision, asserting that COCOBOD's absence from the foreign loan market is due to its diminished creditworthiness and inability to fulfill its cocoa supply commitments.

“Clearly, the banks came to the conclusion that out of the projected production of 650,000 metric tonnes of cocoa for the 2024/2025 crop year, which is doubtful, 250,000 metric tonnes will be used to service existing rolled-over contracts, leaving only 400,000 metric tonnes to honour COCOBOD’s obligations for the 2024/2025 crop year. This raised the ability to pay questions for the banks, hence their refusal to participate,” he added.

Dr. Ato Forson has condemned the decision to abandon a 32-year tradition of offshore syndicated loans for COCOBOD, accusing the Akufo-Addo/Bawumia administration of undermining Ghana’s economic stability.

He argued that this longstanding practice has been crucial in providing reliable foreign exchange for the Ghana Cedi, and its removal reflects poorly on the current government’s management.

Forson highlighted the administration's financial mismanagement, citing significant losses over the past seven years: GHS 395 million in 2017, GHS 78.2 million in 2018, GHS 320.6 million in 2019, GHS 426 million in 2020, GHS 2.4 billion in 2021, GHS 3.2 billion in 2022, and GHS 4.2 billion in 2023.

He warned that Ghana’s cocoa sector is in crisis and called for urgent reform, competent management, and a new strategic direction.