How Harmony Holdings Was Used In Draining Kwara Resources - Politics - Nairaland
Nov. 03, 2019
How Harmony Holdings was used in draining Kwara resources
Sometimes in 2012, a company named Harmony Holdings Limited took over many companies and corporations belonging to the Kwara State government.
From that moment till date, all activities of the company and all its subsidiaries are done in secrecy, including the sales and disposal of government properties in its custody.
After defeat of the former ruling government in Kwara and the assumption of office of Governor Abdulrahman Abdulrazaq, as the new Executive Governor of Kwara State, a committee was set up in July 2019 to review sales of government properties from 1999 till date.
The committee was headed by Senator Makanjuola Ajadi and Chief Akogun Iyiola served as its Secretary.
The Sen Ajadi led committee, after proper findings and review discovered that, Harmony Holdings Limited was incorporated in 2012 as a limited; liability company and immediately after its incorporation, the company was given a take off capital base of N2.5billion by the Kwara State government.
In addition to the N2.5billion given to the company, Kwara State govt under the leadership of Abdulfatai Ahmed also transferred over 20 companies and corporation to the company for management.
According to available records, all companies and corporations transferred to Harmony Holdings for management have 99% shares, while Harmony Holdings itself has only 1% share, meaning that Harmony Holdings doesn’t own the companies or corporation transferred to it, neither does it have power on their properties, other than for the purpose of management.
Some of the companies transferred to Harmony holdings include Ilorin Cargo Terminal, Patigi Regatta Motel, Kwara State Cashew Nut Company, Shonga Farm, Kwara Express, Tourist Kitchen and so on.
Surprisingly, many properties of subsidiary companies transferred to Harmony Holdings have been sold off, some leased out and the proceed remitted to Harmony Holdings.
More worrisome is the fact that, those properties were not only sold out without the consent of the subsidiaries who own 99% shares, they were actually sold at ridiculous prices to officials of Harmony Holdings and same goes for properties on lease. In some cases, the properties were sold, with no trace of payment and all of these were done without any due process.
Additionally, It was observed that, in addition to the N2.5billion given to Harmony Holdings as capital base, Kwara State government also released the sum of N404million to the company between March 2012 and July 2013 as float for operating expenses, rent office renovation and procurement of fixed assets.
Furthermore, Government also transferred the sum of N184,369,818 from the business share of Shonga Farm to Harmony Holdings for management.
The company also received another N474,694,999 from Shonga Farm within the same period.
However, having received all of the above from government, it was expected that Harmony Holdings will be remitting huge sums of money to the purse of Kwara State government on annual basis as returns, but that was not the case at all.
Since 2012 till date, there was no evidence of payment, whatsoever to the Kwara State government.
During the course of its findings, Sen Ajadi led committee were informed that the Harmony Holdings remitted N30million to the government, but when they were asked to produce evidence of such remittance, they couldn't.
It is hereby established that, Kwara State government had given Harmony Holdings over N3billion in cash, then handed over 20 companies and corporations for management to the company since 2012 and till date, no dime has been remitted to government purse, despite selling many properties under its care and management.
It beats anyone's imagination that a company, which received over N3billion and over 20 companies for management about 7years ago, would not be able to provide any evidence of remittances to the government 7years later.
The conclusion of the committee is that, Harmony Holdings is a draining pipe without any form of benefits to the state.
Apart from the above stated issues, there are so many identified infractions and irregularity in the dealings of the company and all major decisions of the company, including the decision to dispose all subsidiary properties were not approved by the shareholders.
In view of the above, it is clear that those who brought in Harmony Holdings to manage government properties did so with the intention of using it milk the state resources and there is need for an holistic investigation and forensic audit of the company
Kwara Must Change
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