The 2023 Auditor General Report has directed the Bank of Ghana to initiate recovery proceedings for the outstanding debt of GH¢8.241 billion owed by the Ghana Cocoa Board (COCOBOD). The report highlights COCOBOD’s persistent default on loan facilities provided by the Bank of Ghana, with the total principal amount outstanding as of December 31, 2022, standing at GH¢8.241 billion.
The Auditor General’s report emphasizes the need for prompt action to recover this significant debt. The report recommends that the Central Bank implement policies to mitigate its risk exposure to quasi-government institutions, including establishing clear repayment plans for loans to prevent defaults.
Additionally, the Auditor General is calling on the Bank of Ghana to formalize an agreement with the Precious Mineral Marketing Company (PMMC) regarding the ‘Gold Purchase Programme’ and sales transactions, ensuring transparency and clarity in these dealings. The Bank of Ghana enlisted the services of the Precious Mineral Marketing Company (PMMC) to act as its agent in purchasing and selling gold.
However, the Auditor General noted that no formal agreement or contract between the Bank of Ghana and PMMC was provided to substantiate these transactions, raising concerns about the lack of transparency and documentation.