A severe liquidity crisis has paralyzed the Produce Buying Company (PBC), a state-owned cocoa giant in Ghana, leading to the seizure of its trucks and operational vehicles by a consortium of banks.
Despite government assurances to revive the company, court-backed enforcement actions are now in full swing, threatening to destabilize the cocoa supply chain and leave thousands of farmers unpaid. Here is the latest breakdown of the unfolding financial crisis at PBC.
Why Are PBC’s Vehicles Being Seized?
On May 12, 2026, reports confirmed that five banks began seizing PBC assets—specifically haulage trucks and operational vehicles—to recover an outstanding debt of GH¢257 million .
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The seizure was authorized by a court order obtained in March 2026. The banks moved to enforce this order after an emergency meeting to address the debt crisis collapsed. According to insiders, the meeting failed because the Ministry of Finance (a key shareholder) declined to approve the necessary proxy documentation .
This action follows a prior court ruling from 2024 that allowed creditors to go after the company’s property, including a stay of execution that was dismissed in mid-April 2026 .
The Financial Collapse of PBC
The numbers paint a grim picture of the company's financial health. The debt burden extends far beyond the bank loans.
· Total Debt: PBC is reportedly struggling with debts totaling approximately GH¢673 million ($60 million) .
· Farmer Arrears: The company owes farmers GH¢24 million for over 9,000 bags of cocoa that were delivered but never paid for, some dating back to November 2025 .
· Operational Paralysis: PBC is unable to purchase new cocoa from farmers. It also faces over 24 months of unpaid staff salaries and owes money to vendors and statutory bodies like SSNIT .
Impact on Ghana’s Cocoa Sector
The seizure of operational vehicles has effectively paralyzed PBC’s logistics. This crisis is particularly alarming because PBC is mandated by law to act as the "buyer of last resort" for Ghanaian cocoa farmers.
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Without operational vehicles and working capital, PBC cannot transport or purchase beans, leaving farmers stranded. Once a dominant force that controlled 30% of the domestic market, PBC’s market share has now collapsed to less than 5% .
Furthermore, reports indicate that COCOBOD (Ghana Cocoa Board) has not yet reimbursed PBC for approximately 800 metric tonnes of cocoa delivered over two months ago, strangling the company’s cash flow further .
Government Silence Deepens the Crisis
The most contentious aspect of this saga is the absence of the government. Finance Minister Dr. Cassiel Ato Forson pledged in February 2026 to revive PBC as the leading buyer in the sector .
However, three months later, creditors describe the Finance Ministry as "missing in action" . The Ministry reportedly declined to sign proxies for the emergency meeting and has not responded to requests for support. Sources claim that aside from the initial announcement, there have been no further discussions with the company on a rescue plan .
Who Are The Creditors?
The consortium enforcing the seizure includes major financial institutions. Notably, two of the five banks are state-owned, yet they are currently moving to liquidate a state-owned enterprise’s assets. This highlights the severe legal and financial contradictions the government faces .
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Other creditors involved in various legal actions against PBC include GCB Bank, ADB, CalBank, UBA, and Bank of Africa .
What’s Next for PBC?
With the seizure of operational vehicles underway, the company is at risk of being auctioned piecemeal. Experts suggest that without an immediate structured intervention by COCOBOD—such as directing cocoa purchases toward PBC and releasing withheld funds—the 70-year-old institution may not survive .
For the average cocoa farmer in Ghana, the seizure means uncertainty. With the major buying season approaching, there are fears that farmers will have limited options to sell their beans, potentially leading to smuggling or lower prices.
Key Takeaways
· Assets Seized: Trucks and operational vehicles taken by banks.
· Debt Amount: GH¢257 million owed to banks; GH¢673 million total debt.
· Farmers Impacted: Over GH¢24 million owed for 9,000+ bags of cocoa.
Ghanaweb ⬇️
PBC hit as five banks begin asset seizure over GH¢257m debt
· Current Status: Operational paralysis; government intervention stalled.
This is a developing story. The situation regarding PBC’s debt and asset seizure is evolving as creditors move to recover funds and stakeholders call for government action.
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