The Oyo State Government has set up a committee to examine moribund state-owned companies and chart a course for the revival of the viable ones.
The Commissioner for Information, Culture and Tourism, Mr. Toye Arulogun, disclosed this at the weekend, explaining that the committee would make recommendations for such assets under three main categories after a thorough determination of their current viability and prospects of future economic benefits.
The three categories which the Moribund and Wasting Assets Committee is expected to recommend such companies are Concession, Public Private Partnership (PPP) Arrangement and Outright sale.
Some of the moribund assets to be reviewed are Conpole Limited, Nigeria Paper Mill Ibadan, Trans Motel Jericho, Trans Motel Iseyin, Ado Awaye Lake, Bower’s Tower, Cultural Centre, Cashew Ind. Limited, Fasola farms amongst others.
Arulogun said that the step was in line with the spirit of the this year’s Budget of Self-Reliance, noting that some of these assets still cost government huge expenditure despite their moribund or wasting state.
He assured that according to the committee’s mandate, principles of due diligence would be followed and that the assets would be subjected to proper inventory, appraisal and valuation before actions are taken on them.
His words: “The theme of the 2017 appropriation is “Budget of Self-Reliance. The government wants its assets to yield revenue rather than being waste pipes. We therefore need to stop the hemorrhage. Under any of the three main categories, government will earn revenue and the fortunes of the assets will turn around with strong multiplier effects on the Oyo State economy.
“The Oyo State Government’s conviction is that instead of having these moribund assets lie idle across the state, we want to revamp those that can be revamped, concession some, put some on the PPP platform and sell others outrightly.
“However, the government will not rush into taking decisions on these moribund assets. The input of relevant stakeholders, shareholders and the general public will be needed and the committee is consulting widely and still open to more contributions,” he stressed
Arulogun said that the committee has been mandated to follow the principles of due diligence in discharging its responsibilities, adding that the moribund assets would be subjected to proper inventory, appraisal and valuation before actions are taken on them.