Harmony Holding Ceases Operations As Kwara Exco Okays Returns Of Public Property To MFI
Following their numerous financial crises, liabilities, and non-profitability since 2012, Kwara State Executive Council on Tuesday resolved to revert all public property under the control of Harmony Holdings and its ‘wobbling’ subsidiaries back to the Ministry of Finance Incorporated for better management and reduced liabilities.
A statement issued in Ilorin and made available to Team@orientactualmags.com by Hon Bolanle Olukoju , who is the state Commissioner for Communications , noted that during the meeting held in Ilorin which was presided over by Governor AbdulRahman AbdulRazaq, the state executive council received briefings from Commissioner for Finance, Dr. Hauwa Nuru on the status of the companies and the best way to stop their continued losses, in spite of several bailouts and loans that have not yielded anything in the public interest.
The commissioner recalled that huge public funds had been sunk into Harmony Holdings and its subsidiaries like Harmony Transport Services, Harmony Insurance Brokers, and Harmony Investment and Property Development Company, among others, with no penny as returns on investment to the state since 2012.
Nuru added that the only profitable one is the Harmony Securities Limited, while Harmony Transport, Harmony Insurance Brokers, Harmony Investment and Property Development Company have remained unprofitable.
‘The state government has come to the aid of some of these companies to stay afloat many times through bailouts, grants, and loans to meet their obligations. Despite all the financial assistance, they are still struggling to generate enough revenue to meet their obligations.
The application of the quick ratio on these companies indicates a ratio below the industry ratio of 1:1 based on audited financial statements of 2022 and 2023, which suggests that the concerned companies are not in a strong financial position to meet their short-term obligations’ the statement quoted the Finance commissioner as saying.
Nuru urged the council to approve the dissolution of the firms and reversion of public property in their care to the Ministry of Finance Incorporated as an investment vehicle to manage the government’s interests, estates, and rights in a sustainable way that follows due process.
‘This option is desirable because of its cost effectiveness, elimination of growing liabilities’ she said.
The statement added that members of the Executive Council approved the proposal, which would be sent to the House of Assembly for consideration and ratification.
The council, Hon Olukoju noted, was also briefed about the outstanding obligations and liabilities of the firms as part of the due process for the reforms-Team@orientactualmags.com Do you have any information you wish to share with us? Do you want us to cover your event or programme? Kindly send SMS to 08059100286, 09094171980 or get in touch via orientactualmag@gmail.com. Thank you
