87% of COCOBOD cocoa roads contracts directly awarded – IMF

The Ghana Cocoa Board (COCOBOD) has come under scrutiny for shortcomings in the procurement and management of its cocoa roads investment program, according to an IMF Technical Assistance Report. The audit revealed that a staggering 87 percent of contracts under COCOBOD's cocoa roads investment portfolio were awarded directly, bypassing the competitive tendering process.

This practice, alongside broader concerns about financial oversight and governance within the state-owned enterprise, has raised alarms about potential financial risks. Beyond the procurement process, the IMF's report highlighted weaknesses in project costing and contract management, which have added to the financial pressures on these projects.

As Ghana grapples with managing fiscal risks associated with state-owned enterprises, particularly those with significant liabilities and financial challenges, the IMF is urging stronger governance and financial controls across such entities. Proposed measures include enhancing board appointment practices, improving coordination between the Ministry of Finance and the State Interests and Governance Authority, and increasing monitoring of investments by SOEs.