The Controlled Food Suppliers Association (CFSA) has appealed to President John Dramani Mahama to urgently intervene in the settlement of a GHC250 million debt owed to its members for food supplied to Free Senior High School (SHS) schools during the 2024/2025 academic year.
Speaking at a press conference in Accra, CFSA Chairman Mr. Twumasi Danso revealed that the prolonged delay in payments has pushed suppliers into dire financial straits, with many abandoning their homes due to constant threats of death, imprisonment, and severe harassment from creditors.
Mr. Danso noted that over 40 members supplied non-perishable food items to complement the Free SHS programme but have been chasing the government for nearly two years to recover their funds and settle loans obtained from financial institutions.
The affected suppliers were contracted by the National Food Buffer Stock Company Limited (NAFCO) and the Ghana Commodity Exchange (GCX) to deliver food to various schools, with deliveries made primarily between October and December 2024, extending into January 2025.
Although the contractual terms stipulated payment within 90 days of delivery—and suppliers fulfilled their obligations, with waybills and Supply Receipt Vouchers (SRVs) duly submitted not a single penny has been paid since 2024.
Severe Financial and Emotional Toll The outstanding payments have effectively trapped the working capital of suppliers, eroded their profit margins and crippled their businesses.
Having procured and delivered food in good faith using personal funds, bank facilities, and credit from farmers and aggregators, suppliers are now facing persistent demand notices, crippling interest rates, and threats of legal action from their own creditors.
Beyond the financial devastation, the CFSA Chairman highlighted the severe emotional, psychological, and reputational damage endured by members.
Livelihoods built over years of sacrifice are on the brink of collapse, with suppliers struggling to afford medical bills, domestic expenses, school fees for their dependents, and employee salaries.
Mr. Danso emphasized that the issue extends beyond the nominal debt. The prolonged withholding of funds has resulted in lost investment opportunities, diminished creditworthiness, lost goodwill, and the forfeiture of bulk-purchase discounts.
Furthermore, suppliers have been hit by the non-renewal of their contracts after complying with a re-registration directive. Given the time-value-of-money, payments due in 2024 no longer hold the same economic value today.
Demands and Two-Week Ultimatum
The Association firmly stated that suppliers should not be forced to act as financiers of a government programme, waiting indefinitely for their dues.
While recognizing the importance of the Free SHS programme, the CFSA insists its success must include the timely settlement of legitimate obligations to businesses that support its supply chain.
The CFSA is therefore calling on the Presidency, the Ministries of Education and Finance, NAFCO, GCX, and other relevant authorities to urgently engage with the Association, noting that the outstanding amounts have already been reconciled and are not in dispute.
Specifically, the suppliers are demanding: an immediate and transparent engagement with representatives of the affected suppliers, a feasible and time-bound payment plan for the settlement of the outstanding obligations, clear communication on the implementation of the payment plan, including timelines and responsible institutions and appropriate consideration of the immense financial burden and prolonged economic cost suppliers have borne due to the delays.
The Association has given the government a two-week window from the date of the press conference to engage its leadership and present a credible payment plan.
While clarifying that this is not a threat but a necessary step after enduring prolonged trauma and hardship, the CFSA warned that failure to meet this deadline will leave members with no option but to pursue other legitimate avenues to protect their interests and recover their monies.
“The suppliers have supplied. The obligations have been incurred. We respectfully ask that the monies owed be paid,” the Association concluded.