The Produce Buying Company (PBC) is gradually keeling under the weight of a whopping US$750million debt that is feeding on itself and growing by the day, Whatsup News has heard.
Allegedly, the debt is resultant of mismanagement and corruption at the state-owned bulk purchaser of cocoa beans and other cash produce.
Bankers to whom the debt is owed are said to be on the neck of the PBC, demanding payment, however, a Management at its wit’s end has not been forthcoming.
In desperation, the PBC sent a message to the government for a bailout. The government is said to have responded by writing to the banks asking that they freeze interests on loans advanced to the PBC for six months.
Beyond this, however, the government has not done anything to offset the huge debt leaving the PBC to struggle under the weight of the debt which is threatening to grind its operation to a stop.
Meanwhile, sources say PBC’s mismanagement involves them expending resources on non-core businesses, such as the running of a shear butter factory and a hotel are said to be in a mess because of corruption.
In particular, the PBC’s Cocoa Hotel in Kumasi is said to have been making losses constantly because top Management staff tend to use it for free for themselves and their family members.
There have even been allegations that these top Management staff use the hotel to make money for themselves.