Minister for Finance, Dr. Cassiel Ato Forson, says COCOBOD’s current financial difficulties stem from what he describes as the previous administration’s indiscriminate award of contracts without matching funding sources.
Speaking on the Citi Breakfast Show and monitored by The High Street Journal, the finance minister said that, the present COCOBOD management inherited GH¢32 billion in arrears, an amount institution cannot settle within a year because of its weakened financial position.
He explained that COCOBOD, like all public agencies, is solely responsible for meeting payment obligations on contracts it awards. The Finance Ministry, he noted, cannot assume liabilities it did not originate.
“When COCOBOD awards a contract, they have to pay the contractors, not the Finance Ministry. The previous government awarded contracts without securing funds to pay for them,” he said.
Dr. Forson added that COCOBOD’s distressed balance sheet has left the agency unable to borrow to relieve its financial pressures. “The CEO inherited GH¢32 billion in arrears.
He cannot pay it in one year because he doesn’t have the resources. COCOBOD cannot go out and borrow because of its balance sheet, so how is it supposed to pay that?” he asked.
The Minister also disclosed that COCOBOD currently has more than 3,000 containers of jute sacks sitting at the Tema Port, materials he said would not be needed for the next five years.
He described this as additional evidence of procurement excesses that have worsened the institution’s fiscal burden.
Dr. Forson argued that addressing these legacy liabilities will require a gradual, disciplined approach, supported by tighter procurement controls to prevent future arrears accumulation.
Over the years, COCOBOD has faced criticism for awarding numerous contracts to suppliers, contractors, and service providers without clearly identifying funding sources.
Many of these contracts were entered into under previous administrations to procure inputs such as fertilizers, pesticides, jute sacks, and other farm materials.
In several cases, the total financial obligations were not matched with revenue or budget allocations, leaving COCOBOD with mounting arrears.
By 2025, these unbacked contracts had accumulated into an estimated GH¢32 billion in outstanding payments, creating significant liquidity pressures for the corporation.
The resulting financial strain has limited COCOBOD’s ability to borrow, invest in new initiatives, or promptly settle obligations to contractors
