COCOBOD so ‘bankrupt’ can’t pay bondholders, road contractors & LBCs while ‘almighty’ BoG wallows in ₵55bn negative equity – Minority caucus

Ghana Cocoa Board is “bankrupt”, Minority Leader Cassiel Ato Forson has said.

Also, the Bank of Ghana, Dr Forson added, is in a similar state with a negative eqiuty of more than ₵55 billion.

Presenting the caucus’ response to the 2023 mid-year budget review, Dr. Ato Forson said in parliament on Wednesday, 2 August 2023

COCOBOD cannot satisfy its financial obligations to investors in the cocoa sector because of its current financial situation.

“Who would have thought that the once prestigious Ghana Cocoa Board will today be bankrupt to the extent that they cannot repay their debt to cocoa bondholders, cocoa road contractors, Licence Buying Companies and fertiliser suppliers?” he asked.

Also, he noted that “the almighty Bank of Ghana is now bankrupt with negative equity of over GHC55 billion and counting that will require the taxpayer to recapitalise it”.

In addition, he said the Akufo-Addo government has succeeded in messing up a lot of state-owned enterprises.

“ECG, yaamutu [dead]; GIHOC Distilleries, yaamutu; NEDCo, yaamutu; GRIDCo, yaamutu; Buffer Stock Company, yaamutu; Ghana Publishing Company, yaamutu; Ghana Railways, yaamutu; STC, yaamutu; Ghana Airport Company Limited, yaamutu. What a corner you have turned, Mr. Minister!” Dr Ato Forson said in reference to Finance Minister Ken Ofori-Atta’s claim that the exonomy has “turned the corner”.

“How could you claim to have turned a corner when GDP growth has been revised from 2.8% to 1.5%, current net international reserves is about 1 week of import cover and it is projected to be about 3 weeks (0.8 months) of import cover by the end of the year 2023 even with IMF cash?” he wondered.

“How could you claim to have turned a corner when inflation is currently 42.5% and rising and projected to be 31.3% by the end of the year, when monetary policy is 30% and rising, and commercial bank lending rate is 36% and rising?” he quizzed.

In his view, “The performance of this economic management team, despite the hype, over the past seven years, has been beyond abysmal. With this mess created by the NPP administration, Ghana will require over 5 years of collective sacrifice and dedication to turn things around”.

“Mr. Speaker, the government has rewritten Ghana’s economic history and a book on HOW NOT TO MANAGE AN ECONOMY must be dedicated to this Akufo-Addo/Bawumia government”, Dr Ato Forson taunted.