The Minority in Parliament has challenged the Ghana Cocobod’s decision to not seek for syndicated loan to finance the next cocoa season.
According to the caucus, claims by the Management of Cocobod that their decision is to wean themselves off dependence on foreign investments for cocoa production, is false and unmeritorious.
They also described the gesture as a face-saving strategy, following the entity’s years of mismanagement that has culminated in the sector’s destruction.
The Chief Executive Officer of Coco bod, Mr. Boahen Aidoo had announced to the press of the board’s decision not to go for syndicated loans.
He noted that after 32 years of depending on such arrangement, which has proved to be costly, the entity thought it was time to reverse the trend.
After 32 years, you learn your lessons. The decision to not seek for a syndicated loan will save us GHC 150,000 in interest payment if the cost of the 1.5 billion loan is pegged at last year’s inters rate of 8 %.
However, responding to the development in press statement Minority side noted that for the past seven years the current management has failed to chart a profitable path for the cocoa sector, a situation that has doused investor confidence.
They attributed Coco board’ s decision to the entity’s lack of credit worthiness.
‘‘This is to hide the fact that COCOBOD is no longer credit worthy and that a 32-year-old tradition which has consistently cushioned and provided Ghana’s economy with the most reliable foreign exchange to support the economy, has been destroyed by the Akufo-Addo/Bawumia government,’’ he stated added.