Amid worries of late payments, Produce Buying Company (PBC) has asked COCOBOD to speed up payment procedures and address “systematic issues” that have long afflicted the sector. The appeal comes at a time when doubts have been raised about COCOBOD’s capacity to provide prompt monetary settlements, as well as attempts to restructure PBC’s operations in order for it to recover its status as the industry’s largest cocoa sourcing firm.
At a press briefing held in Accra, Managing Director Seidu Yonye noted that Ghana’s cocoa purchasing system is liquidity-intensive and time-sensitive; thus, any delays in financing result in a gap.
The administration of PBC said that the goal of this appeal is to address the systematic issues of delayed payments in order to diminish the incentive for arbitrage and smuggling. To bring financial stability, PBC is not just asking for speed; they have also announced the development of accountable payment systems to help with seamless disbursements.
Transparent payment mechanism for COCOBOD and banks. This design will enable stakeholders to monitor fund drawdowns and usage, cocoa deliveries and entitlements, as well as real-time arrears.
According to the MD, this receivables-based approach will allow banks to finance cocoa purchases and track the supply chain with much more assurance. Aside from the financials, the MD’s statement emphasised farmer security. By simplifying transactions, PBC seeks to remove non-functional purchasers who frequently take advantage of liquidity gaps to cheat farmers.
Source: myjoyonline.com
