The ineffective debt collection strategy by the Ghana Cocoa Board (COCOBOD), has led to the Cocoa Clinic losing over GHS 8 million to corporate companies by way of uncollected medical bills.
Management of the clinic according to the 2020 Auditor-General’s report, has been unable to collect bills from 159 corporate clients a total of GHS 8,664,558.93 owed the clinic for various health care services rendered to them as of September 30, 2019.
The report also disclosed that the Accounts Department of the Clinic could not extract the debtors’ age analysis from their software system to enable the clinic to ascertain and follow up on outstanding debts.
“The non-collection of the receivables was due to ineffective debt collection strategy, which includes not appointing an officer to follow up on outstanding debts.”
“The untimely recovery of the debt has resulted in uncertainty in their realization, which has negatively affected the liquidity position of the clinic”, the report stated.
The Auditor-General, therefore, recommended that the management of COCOBOD should intensify its effort to recover these debts from the various organizations.
COCOBOD’s management however stated that they have issued demand notices to all companies concerned, although services have been suspended to some of the insurance companies and corporate companies that have failed to service their debt.