Proponent of Akuafo cheque says payment system must not be changed
Accra, Oct. 15, GNA - A proponent of the Akuafo Cheque system under which farmers are paid with a special cheque for the purchase of cocoa has thrown his weight behind the demand of cocoa farmers that the payment system in its original form should be brought back.
In a statement to the Ghana News Agency in Accra on Monday, Dr Michael Gbordzoe, who said he and three others submitted proposals for the Akuafo Cheque system to the erstwhile Provisional National Defence Council (PNDC), defended the merits of the system in its original form and said the gains must not be lost.
"The significant advantages that the farmers have gained through the Akuafo Cheque payment system should be defended and not thrown away," he said.
The Ghana Cocoa, Coffee and Shea-nut Farmers Association should do everything legally possible to exert pressure on the Ghana Cocoa Board (COCOBOD) and the current Government to put measures in place now to entrench the original Akuafo Cheque payment system to the advantage of the farmers and the nation Ghana and not allow this to be manipulated by the Licensed Buying Companies.
Dr Gbordzoe said the rationale behind the introduction of the Akuafo Cheque payment system included the failure or inability of COCOBOD to pay the cocoa farmers for cocoa and the acute liquidity problems prevailing at the time leading to the withdrawal of the 50 cedi notes from circulation.
"Even if the PNDC could mobilize funds from any sources at that time to pay the farmers for their produce, the banks would be left with serious and acute-to-chronic liquidity problems if the COCOBOD were to embark on cash payments."
If cash payments were effected, most farmers would put their sums of money 'under their pillows' or elsewhere at home and would not necessarily or willingly go to banks to save their money.
Farmers are now being paid in cash and with the Akuafo Cheque system.
Dr Gbordzoe said paying through the cheque system implied also creating savings accounts for the farmers, preferably with the Agricultural Development Bank or other Ghanaian-owned banks, with long term advantages for the farmers and the banks.
"The farmers' cheque payment system would also contribute in a way to the capitalization efforts of the banks since the farmers would not normally withdraw all their monies from the bank within a short period of time," he said.
The system was also to eliminate the tremendous influence of middlemen associated with cash payments by buying agents leading to the farmers getting less net earnings for their produce.
Dr Gbordzoe said most of these factors were still relevant today, especially liquidity factors, net earnings for the farmers for their produce, reduction of the influence of middle men associated with local or foreign controlled Buying Agents or Companies, and speculation on the commodities associated with cash-flows.
GNA...
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