Document Type

Article

Journal/Book Title/Conference

International Food and Agribusiness Management Review

Volume

24

Issue

5

Publisher

International Food and Agribusiness Management Association

Publication Date

5-31-2021

First Page

877

Last Page

885

Creative Commons License

Creative Commons Attribution-Noncommercial 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 4.0 License.

Abstract

As a large cocoa bean trader, Transmar group ltd. bought millions of dollars’ worth of beans relying on financing from a syndicate of banks. To monitor amounts of eligible collateral, the banks required Transmar prepare periodic borrowing base (BB) reports. At some point, Transmar developed a discrepancy in collateral recorded on the BB report versus the amount of funds borrowed. The case discusses how this discrepancy grew larger as many questionable and fraudulent entries were included on subsequent BB reports. The case is written from the perspective of Peter B. Johnson, head of Transmar’s European affiliate and son of CEO and founder of Transmar, Peter G. Johnson. In late 2014, Peter B. Johnson first learned about the deceptive practices being employed in preparing the BB reports. How will he react? The case is also rich in details surrounding the cocoa industry supply chain and history of cocoa production.

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