SARAKI AND HIS BUSINESS EMPIRE

Date: 2012-11-14

Baba Oloye, as he was fondly called, the late strongman of Kwara politics, Dr Abubakar Olusola Saraki, although largely successful in politics, had sour experiences with his romance with business, especially banking. As promoter of the defunct Societe Generale Bank in Nigeria, SGBN, Saraki first had to engage in a legal battle for control of the new bank with a long time friend, Kotoye. He got the bank back but in 2003, the bank of which he was chairman was investigated by the National Drug Law Enforcement Agency, NDLEA for alleged money laundering.

An alleged shady deal between Societe Generale Bank and its chairman, Dr. Olusola Saraki, and 11 other shareholders of the bank including his wife, Florence, landed them in the dock of the NDLEA.

Prominent among the other 10 personalities investigated were Chief Olawale Ige, a former communications minister, Mr. Isiaka Ayinde, Dr. Ade Thomas and Chief Ebun Aderibigbe. The story was that the 12 individuals bought shares (rights issues) worth about half a billion naira from the same SGBN with the amount considered fraudulently sourced, illegally transferred and immorally deposited.

Later, SGBN was investigated by the Economic and Financial Crimes Commission (EFCC) under Mallam Nuhu Ribadu, and its license was suspended. The license was restored last year, but till now, the bank has not restarted business.

Owing to his romance with the powers that be, the Saraki dynasty was an early beneficiary of the Babangida-era scheme that turned banking into a subsidised racket.  Banking licences were allocated to the well-connected, without the least regard to the "market forces."

The story was that like other banks, Société Générale bought U.S dollars from the Central Bank at a discount ranging from two to four naira per dollar and sold it to desperate customers for whatever it could make them pay.

After years of enjoying this subsidy, the bank collapsed, run aground by his son and the immediate former governor of Kwara State, Bukola Saraki, physician turned banker, and now a Senator of the federal republic.  Depositors’ funds running into tens, perhaps hundreds of millions   of Naira, including that of former Super Eagles captain, Austin Jay Jay Okocha, remained trapped in the bank.

The signs of insolvency were already palpable when, on being elected as governor in 2003, Bukola Saraki, with scant regard for propriety, moved the Kwara State Government accounts from the state-owned Trade Bank, said to be in distress, to the SGB, regarded as Saraki family bank, with the obvious intent of making the state government subsidise it.

Public outcry forced him to reverse course.  Many commentators were shocked that it took a public outcry to make him recognise that he had committed a flagrant conflict of interest.

Embattled Societe Generale Bank Nigeria, SGBN Limited was to commence operations under a new name, Heritage bank, following approval by the Central Bank of Nigeria, CBN, which said the bank had met the financial requirements for returning to business.

The CBN revoked the operating licence of Savannah Bank in February 2002, while that of Societe Generale Bank Plc, was revoked on January 16, 2006. The NDIC and CBN handed over Savannah Bank to the owners on June 9, 2009, with a promise of ensuring a speedy conclusion of the necessary processes for re-opening the bank to the public.

Early last year, the Nigeria Deposit Insurance Corporation, NDIC announced that SGBN and Savanna Bank were to commence operations in 2012. The Managing Director, Alhaji Umaru Ibrahim disclosed that efforts were being put in place to ensure that Savannah Bank Nigeria, SBN Plc and Societe Generale Bank of Nigeria, SGBN Limited were to start operation by 2012.

Umaru said during the 2011 Editors Forum in Lagos that by second quarter of the year in focus (2012), the two banks will start operations in order for depositors whose money has been trapped in the bank to get back their funds.

Source

 

Cloud Tag: What's trending

Click on a word/phrase to read more about it.

MalHub     Mohammed Tunde-Jimoh     Michael Nzwekwe     Adamu Attah     Rice Farmers Association Of Nigeria     S.O. Opowoye     Balogin Alanamu     Surajudeen Akanbi     IESA     Nigerian Army     Nigeria Customs Service     Pakata Development Association     Bamidele Aluko     Abdul Jimoh Mohammed     Abdulrahman Abdulrazak     Rex Olawoye     Ramadhan     Aisha Ahman Pategi     Ganmo Power Sub-Station     Ganmo Electricity Sub-Station     Afeyin-Olukuta     Musa Alhassan Buge     Riskat Opakunle     Saba Jibril     Ilorin West     Kunle Suleiman     Onilupeju Of Ilupeju     Apado     Kulende     Azeez Bello     Ahmad Belgore     Moshood Mustapha     Abdulrasaq Alaro     KwaraLearn     Bareke     Kwara Metro Park     Dankaka     Segun Abifarin     Niyi Osundare     Bureau Of Lands     Ishak Mohammed Sabi     Abdulrasheed Akogun     Yetunde Balogun     Alimi     NTA Ilorin     Sanusi Abubakar     Salihu Alhaji Musa     Ilota     20 Billion Bond     Societe Generale Bank Of Nigeria     Maigida Soludero Transit     Rueben Parejo     TIIDELab     Abdulganiyu Oladosu     Abatemi Usman     Lithium     Curfew     Yahaya Seriki     Folorunsho Alao     Nigerian Correctional Service     Government House     PharmAccess Foundation     Eghe Igbinehi     Emir Of Ilorin     Kwara Poly     Abdullateef Abdussalam     Minister     Abdulrazaq Magaji     Afusat Nike Ibrahim     Tunji Ajanaku     NIPR     Dan Iya     Saka Adeyemo     Ilorin Curfew     Ibrahim Kayode Adeyemi     Durosinlohun Kawu     Raji Ayodele Kamaldeen    

Cloud Tag: What's trending

Click on a word/phrase to read more about it.

MalHub     Lawal Olohungbebe     John Olobayo     Rex Olawoye     Saliu Tunde Bello     Yusuf Arowosaye     S.O. Opowoye     Tunde Oyawoye     AbdulKareem Yusuf Danhawa     Usman Yunusa     Abdulrasheed Akogun     Saad Omo\'ya     Vasolar Consultoria     Jumoke Monsura Gafar     Ilorin Talaka Parapo     Abdul Jimoh Mohammed     Maigidasanma     Demola Banu     Ilorin Anchor Men And Women     UTME     Azeez Salawu     Oluronke Adeyemi     John Obuh     Abubakar B.M     Mohammed Haruna     New Nigeria People’s Party     Sa\'adu Salahu     Abegunde Goke     Abdulrahman Abdulrazaq     Anilelerin     Federal Allocation     Saheed Popoola     Mopelola Abdulmaliq-Bashir     Monkey Pox     Tunde Akanbi     Lateef Ademola Olatunji     Patience Jonathan     Oko     Sa\'adu Gambari     Abdulganiyu Salahudeen     Saka Balikis Kehinde     Oniwa     High Court     Aliyu Muhammad Saifudeen     Olomu     Ebola     Salihu S. Yaru     Mazars Consulting     Dasuki Belgore     Jaigbade Alao     AbdulRazaq Abubakar Jiddah     Mutawalle     07039448763     Plat Technologies Limited     Inside Kwara     Gobirawa     Saka Isau     ANCOPPS     Hamza Usman     Lithium     Hijaab     Bank Of Industry     Kunle Suleiman     Muhammed Aliyu     Haliru Dantoro     C2c@kwarastate.gov.ng     Assayomo     Abdulfatai Baakini     Mutawali Of Ilorin     Babatunde Ajeigbe     Zulu Gambari     Isiaka Saka Opobiyi     Centre For Peace And Strategic Studies     A.O. Belgore     Ayinke Saka     Universal Basic Education Commission     Ubandoma Of Ilorin