The Kwara State Government has scrapped Harmony Holdings, a firm it set up in 2012 to manage public assets, and reverted the properties to the care of the state Ministry of Finance Incorporated.
The state Commissioner for Communications, Bolanle Olukoju, announced the decision at the end of a state executive council meeting presided over by Governor AbdulRahman AbdulRazaq.
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The council made the decision after the Commissioner for Finance, Hauwa Nuru, briefed it on the status of Harmony Holdings and its subsidiaries.
Mrs Nuru reported that the firms continued to record losses, despite several bailouts and loans facilitated by the state government.
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Harmony Holdings’ subsidiaries include Harmony Transport Services, Harmony Insurance Brokers, and Harmony Investment and Property Development Company.
Mrs Nuru said only Harmony Securities Limited has been profitable among the firms.
“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,” she said.
“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 commissioner requested the council to approve the dissolution of the firms and reversion of public properties in their care to the Ministry of Finance Incorporated as an investment vehicle to manage the government’s interests, estates, and rights.
“This option is desirable because of its cost effectiveness and elimination of growing liabilities,” she said.
The council approved the proposal, which will be sent to the state House of Assembly for consideration and ratification.
The council was also briefed about the firms’ outstanding obligations and liabilities.
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