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The National Food Buffer Stock Company (NAFCO) management has acknowledged its indebtedness to food suppliers, leading to the current picketing. In response, the company has announced an emergency board meeting will be held to address the issue.
On July 6, NAFCO expressed sympathy for the supplier’s unfortunate circumstances that led them to protest the company. In addition, NAFCO expressed concern for the situation of its suppliers and thanked them for their patience.
The statement further mentioned that an emergency board meeting has been scheduled to discuss the matter. A potential resolution plan will be communicated following the meeting.
According to the protesting food suppliers, they are owed two years’ worth of arrears. Koku Amedume, spokesperson for the National Food Suppliers Association, highlighted the pressure they are facing due to the loans they had taken from banks to meet the supply demands of the Buffer Stock. Amedume shared during an interview on the Ghana Tonight Show with Alfred Ocansey on TV3 on Tuesday, July 4, that the suppliers who participated in the demonstration preferred sleeping at NAFCO’s premises over their own homes because of the financial strain they are experiencing.
The suppliers complained about the accumulating interest on their loans, resulting from NAFCO’s nonpayment.
The mounting pressure on NAFCO stems from the potential repercussions on schools. Dr. Clement Apaak, Member of Parliament for Builsa South and ranking member of the parliamentary select committee on Education, stated that failure to settle the arrears would prevent the suppliers from continuing to provide food to schools. Dr. Apaak urged President Nana Addo Dankwa Akufo-Addo to ensure prompt payment of the suppliers’ outstanding balances to enable them to sustain their businesses.
Dr. Apaak questioned why the government had not released funds for the payment, especially since critical sectors like education and health, as well as social intervention programs, are protected under the IMF program. He emphasized the amount owed to the suppliers is not even over GHS300 million and urged the President to take immediate action to avoid school closures.
Because of the suppliers not being able to supply food, Dr. Apaak warned that schools will have to close by the end of the week if no action is taken.
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Source: Omanghana.com
