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COCOBOD did not seek parliamentary approval to write off GH¢23.96 million – A-G report

Wed, 1 Sep 2021 Source: www.ghanaweb.com

• The Ghana COCOBOD has been cited for a number of infractions by the A-G's Department

• The report said COCOBOD did not seek parliamentary approval to write-off an amount of GH¢23.96m for chemicals and fertilizers

• It said the board could also not provide the supporting documents for loans and grant


The Board of Directors of the Ghana COCOBOD have been cited by the Auditor General’s Department for a number of infractions in its recent report, the Ghana News Agency has reported.

According to the portal, the 2020 Auditor-General Report revealed COCOBOD did not seek parliamentary approval to write-off from its books an amount of GH¢23.96 million for the value of expired chemicals and fertilizers.

It further revealed Management of the Board could not provide the supporting documents for an amount of GH¢3,561,358.19 recorded in the books for loans and grants.

“Failing which, the value shall be recovered from the Board of Directors in accordance with Section 18(b) of the Audit Service Act, 2000 (Act 584). Management of the Board could not provide supporting documents for a total amount of GH¢3,561,358.19 recorded in the books as liabilities (Loans and Grants).

As its recommendation, the Auditor General’s Department urged the Management of COCOBOD to provide the supporting documents such as the Loan Agreements, Memorandum of Understanding between COCOBOD and Finance Ministry for all grants under review.

On the expenditure within the COCOBODs Fund Accounts, the A-G’s Department called on the agency to create the Depreciation Reserve Account as mandated by the Law to be spent within the account to ensure that the Boards’ expenditure on fixed assets and other equipment were apt.

Additionally, the A-G report revealed management of COCOBOD did not transfer GH¢2.5 million to a Depreciation Reserve Account it had with a commercial bank as mandated by Section 28 of Ghana Cocoa Board (Amendment) Law, 1991 (P.N.D.C.L 265).

“Our analysis of the last six years Income and Expenditure Statements of the Board indicated that Management did not transfer part of its profit into the consolidated fund as prescribed by the (P.N.D.C.L 265),” the report said.

On advances made to Licensed Buying Companies, the A-G report said, “as of September 30th, 2019, a total amount of GH¢1.29 million stood in the records of the Board as balances of advances made to 17 Licensed Buying Companies (LBCs) for the purchase of Jute Sacks.”

“These balances were in the books of the Board prior to the 2016/2017 financial year and thus recommend that the Managers of those LBCs be located and the amount recovered from them to avoid loss of funds.”

The report further noted the Board also delayed in making monthly Tier 1 contribution payments to Social Security and National Insurance Trust (SSNIT).

“The Board delayed the monthly Tier 1 contribution payment to Social Security and National Insurance Trust (SSNIT) resulting in an accumulated penalty on unpaid and delayed SSF contributions of GH¢3.74 million as of October 2019.”

The A-G’s department on the other hand recommended to the management to ensure prompt payment of SSNIT contributions in accordance with Act 766 in order to avoid further penalty charges.

Source: www.ghanaweb.com
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