Cocobod says it got approval from its board of directors to write off the cost of expired fertilizer and agro-chemicals in 2018 valued at GH¢23.9m.
The Auditor-General, in his 2020 report on the cocoa sector regulator, said expired fertilizers and agro-chemicals valued at GH¢23.9m had been written off from the books of Cocobod in 2018 without parliamentary approval.
Reacting to the report, Cocobod explained that when the current management took over administration in 2017, it was surprised to find out that there were significant volumes of chemicals and fertilizers in stock.
It therefore caused an audit to be conducted on the items, which revealed that some fertilizers and agro-chemicals valued at GH¢23.9m had expired.
“Management subsequently sought approval from the board of directors to write off the value of the expired agro-inputs from the books of Cocobod, an approval which was duly granted,” Cocobod said.
Cocobod explained that it normally procures fertilizers and agro-chemicals for distribution to cocoa farmers across the cocoa-growing regions. It added that usually, these agro-chemicals and fertilizers are distributed and applied the same year.
The board said it is taking steps to obtain retrospective parliamentary approval of the write-off, adding: “We wish to assure our stakeholders that prudent measures have been put in place to prevent the recurrence of issues of this nature.”