COCOBOD to sanction LBCs

....who abuse Akuafo Cheque system
Kumasi, Oct 11, GNA- Mr Kwame Sarpong, Chief Executive of the Ghana cocoa Board (COCOBOD), has warned that the board has introduced sanctions including the withdrawal of cocoa buying licenses of Licensed Buying companies (LBCs) who would be found abusing the Akuafo Cheque system.

"We shall not tolerate any fraudulent practices from purchasing clerks and district officers of any LBC who withdraw huge sums of money sometimes in excess of 900 million cedis from the banks", he said. Addressing a farmers' rally organised by the Federated Commodities Limited (FEDCO), an LBC in Kumasi on Thursday, Mr Sarpong said such acts defeated the use of the Akuafo Cheque payment system.

He said the cheque system was in the interest of both the farmer and the LBCs, pointing out that, it facilitated reconciliation between the purchasing clerks and the head offices of the LBCs, reduces the possibility of purchasing clerks embezzling funds and gives farmers access to institutional credits.

Mr Sarpong, therefore, asked the banking sector and the LBCs to help implement and enforce the use of the Akuafo Cheque system. He paid glowing tribute to the security agencies, chiefs and anti-smuggling task forces for their efforts at curbing cocoa smuggling along the borders during the season.

Alhaji Adamu Iddrisu, Chairman of the board of directors of FEDCO, appealed to the banks not to undermine the Akuafo Cheque system. He noted that the implementation of the system failed in the past because of the frustration farmers went through at the banks and said prompt payment of the cheque would give farmers confidence in the system and help make its operation successful.

Nana Wiafe Akenten III, Omanhene of Offinso, said factors that led to the rejection of the system by farmers must be critically examined and addressed. 11 Oct 03