Auditor General: COCOBOD defaults on $532 Million Loan to BoG; Central Bank urged to take action 

The 2023 Auditor General’s Report has called on the Bank of Ghana to recover GH¢8.241 billion ($532 million) owed by the Ghana Cocoa Board (COCOBOD).

The report highlights that COCOBOD has repeatedly defaulted on loan facilities extended by the Bank of Ghana, with an outstanding principal amount of GH¢8.241 billion as of December 31, 2022.

The Auditor General has advised the Central Bank to implement policies to mitigate its exposure to quasi-government institutions and to ensure that clear repayment plans are established when loans are due.

This call for stricter financial management comes amid broader concerns about the financial health and accountability of state-linked entities.

In addition, the report urges the Bank of Ghana to formalize its transactional relationships under the “Gold Purchase Programme” with the Precious Mineral Marketing Company (PMMC).

Although the Central Bank has engaged PMMC to purchase and sell gold on its behalf, the Auditor General noted the absence of a formal agreement outlining the terms of this engagement.

The lack of a formal contract means that key details, such as fees or commissions paid to PMMC, could not be verified.

“Transactional relationships of this nature must be formalized with an agreement,” the Auditor General stated, underscoring the need for transparent and documented agreements to ensure accountability and clarity in financial dealings.

These recommendations reflect a broader push for enhanced financial discipline and transparency within Ghana’s public sector, aiming to safeguard public resources and improve institutional accountability.

Source: Norvanreports