Kwara State's Executive Council has resolved to liquidate Harmony Holdings, a state-owned enterprise mired in financial crises, liabilities, and non-profitability since 2012. The decision, announced on Tuesday, follows a directive to transfer all public assets held by the company and its struggling subsidiaries to the Ministry of Finance Incorporated for better oversight and reduced fiscal exposure.

A statement signed by Mrs Bolanle Olukoju, Commissioner for Communications, revealed the move was approved at a meeting in Ilorin chaired by Governor AbdulRahman AbdulRazaq. The council received a briefing from Dr. Hauwa Nuru, Finance Commissioner, on the dire financial status of Harmony Holdings and its subsidiaries, including Harmony Transport Services, Harmony Insurance Brokers, and Harmony Investment and Property Development Company.

Dr. Nuru highlighted that "billions of naira in public funds have been invested in these entities since 2012, yet none generated returns to offset losses." The government aims to halt further financial drain and prioritise prudent management of state resources.

The liquidation underscores Kwara's efforts to address underperforming state-owned enterprises and redirect funds toward critical public services.

Nuru said 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", she explained.

Nuru 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 in a sustainable way that follows due process.

"This option is desirable because of its cost effectiveness, elimination of growing liabilities.

"Council members approved the proposal, which will then be sent to the House of Assembly for consideration and ratification," the commissioner said.

The council was also briefed about the outstanding obligations and liabilities of the firms as part of the due process for the reforms.