A-G: COCOBOD loses GH¢320.6 m …but increases revenue from GH¢9.03bn to GH¢9.76bn in 2019

Ghana Cocoa Board (COCOBOD) recorded a loss of GH¢320.6 million in the 2019 financial year as compared with a loss of GH¢78.2 million registered in 2018, the 2020 Auditor-General (A-G) Report has revealed.

The loss represented a 310 per cent decrease in the Board’s financial performance over the period, according to the audited financial statements of Board for the year ended September 30, 2019, captured in the report.

The A-G report on the Public Accounts of Ghana: Public Boards, Corporations and other Statutory Institutions was presented to parliament by the Acting Auditor-General, Johnson Akuamoah Asiedu, in June this year.

It said COCOBOD’s revenue increased by eight per cent from GH¢9.03 billion in 2018 to GH¢9.76 billion in 2019 and although the Board recorded 93,196 tonnes or 10.3 per cent fall in cocoa production, the rise in revenue was largely due to a higher average sales price per tonne of USD2,265.

That, it said, was 5.25 per cent higher than average price of USD2, 125 per tonne in 2018.

The report said the Direct Cost increased by GH¢8.2 million, from GH¢7.31 billionin 2018 to GH¢8.13 billion in 2019 representing 11.3 per cent  increase as a result of  a reduction in Government Revenue support received to offset part of Direct Cost.

Distribution and Administrative Expenses both increased by 20.2 per cent and 15.4 per cent respectively resulting in an Operatingprofit of GH¢605 million, representing a 25.6 per cent increase over the previous year.

For non-Current Assets, the report said it increased from GH¢5.02 billion in 2018 to GH¢ 8.21 billion in 2019, representing an increase of 63.7 per cent and this was mainly due to a revaluation surplus of 1.8 billion recognised and103 million additions to the Property, Plant and Equipment during the financial year.

“The Current Assets increased slightly by one per cent from GH¢6.79billion in 2018 to GH¢6.86 billion in 2019. This was as a result of increases in processed cocoa products and other consumables and inputs,” the report said.

Among the management issues in the report was the Board did not establish a contributory insurance scheme for cocoa, coffee and shea nuts farmers since the law came into force over 38 years ago neither did the Board of Directors provide any regulationas evidence to give full implementation of the Social Security Scheme for the farmers.

“Our further review of the Account ledgers disclosed that, the Board has set aside from profit a total of GH¢28,898,676.88 in prior periods to meet the requirement of section 26 of the PNDCL 265 however, Management has not invested the amount in any Trust,” it said.

BY JONATHAN DONKOR

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