By Adnan Adams Mohammed
The Ghana Cocoa Board (COCOBOD) has exposed the operations of Licensed Buying Companies (LBCs), including the Produce Buying Company (PBC), revealing that delayed cocoa farmer payments were driven by deliberate corporate inaction and license violations rather than a lack of state funding.
Speaking during a media engagement on the Cocoa Bill 2026, COCOBOD Chief Executive Officer Dr. Randy Abbey revealed that despite COCOBOD disbursing GH¢34 billion to LBCs since the start of the cocoa season in September, these private and independent entities diverted funds to settle commercial bank loans and internal payroll responsibilities instead of paying the farmers who supplied the produce.
“When you begin to hear that cocoa farmers have not been paid since September, but my books show that I have paid GH¢34 billion to LBCs, a false impression is created,” Dr. Abbey stated. “When we called them to a meeting, they admitted, ‘Oh, when you pay the money, the banks took the money. We had to pay salaries.’ So they paid salaries and bank debts with funds meant for farmers.”
The CEO emphasized that LBCs routinely breached regulatory terms by taking cocoa on credit from farmers, a practice that directly violates their operational licenses.
“By the terms of their license, no LBC is supposed to take cocoa on credit from a farmer. They breached the terms of their license and created a crisis for everybody,” Dr. Abbey warned. “Any LBC that takes cocoa on credit from a farmer will have its license revoked. You either have the money to pay them, or you don’t go there to operate.”
Public Intervention Forces Accountability
To counter growing politicization and force LBCs to clear their arrears, COCOBOD undertook an unprecedented public disclosure. After compelling the buying companies to submit localized debt figures, which totaled GH¢1.4 billion owed directly to farmers, COCOBOD released an additional GH¢2.6 billion directly aimed at clearing the claims.
“We went non-conventional to find a solution,” Dr. Abbey explained regarding the public mandate. “We put out a statement saying: ‘We have given them GH¢34 billion since September. Their data shows they owe farmers GH¢1.4 billion. We are releasing GH¢2.6 billion today. You farmer, go and collect your money from the LBC because I have released the funds.’ That statement ended the agitation instantly.”
Rejection of Legacy Debts and PBC Autonomy
Addressing misconceptions regarding the Produce Buying Company (PBC), Dr. Abbey clarified that PBC operates as an independent entity listed on the Ghana Stock Exchange and is no longer a subsidiary of COCOBOD. He firmly rejected claims that COCOBOD owes PBC funds, revealing instead that PBC owes COCOBOD nearly GH¢300 million.
Under a new domestic financing framework utilizing 270-day commercial notes, COCOBOD confirmed it will no longer absorb legacy debts or provide unbacked seed capital to underperforming indigenous companies.
“Gone are the days where processing companies and licensed buying companies will see seed money from COCOBOD as money you can take and not pay back or use anyhow,” Dr. Abbey asserted. “PBC stands to benefit the most from an indigenized sector, but it is up to PBC to put its house in order. We are not going to carry debts on COCOBOD’s books any longer.”
Volta Region Dispute Stalls Local Payments
Dr. Abbey also addressed isolated payment delays in the Volta Region, specifically the Hohoe district, attributing the impasse to an unauthorized security operation conducted by PBC.
According to COCOBOD, PBC deployed security operatives to seize cocoa stored in local warehouses and forcibly transferred it to the Cocoa Marketing Company (CMC). The incident triggered official investigations by the Office of the Special Prosecutor (OSP) and COCOBOD.
“PBC created a mess and went to sit in their office while everybody complained that it was COCOBOD. Our hands are clean,” Dr. Abbey said. “Because of that action, the cocoa was legally subject to confiscation issues, even though the farmers played no part in the dispute. Payments for those specific farmers remain stalled until the official investigation reports are concluded and acted upon.”
COCOBOD reaffirmed that all future allocations under the Cocoa Bill 2026 will operate under strict repayment verification to guarantee financial sustainability for the cocoa sector.
