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.

COVID     KWASIEC     John Kehinde Salako     Olaitan Adefila     Millennium Development Goals     Sulyman Age AbdulKareem     Yusuf Amuda Aluko     David Oyedepo     IF-K     Halimah Perogi     Special Adviser On Digital Innovation     Sulu Gambari     Esuwoye     Riskat Opakunle     Isau     Rotimi Atere     Abdulmalik Bashir Mopelola Risikatullahi     Garba Idris Ajia     Orisun Igbomina     Oni Adebayo     Abdullahi Samari     Babaloja-General     Sa\'adu Gambari     Kayode Yusuf     Ahmad Fatima Bisola     Tayo Awodiji     Abdulrahman Abdulrasak     UITH     Tunji Folami     Usman Rifun     Magaji Are     Umar Yakubu Jaja     Twitter     Woro     Matthew Babaoye     Abdulrahman Onikijipa     CKNG     IDPU     Jalala     Saka Saadu     Sobi Specialist Hospital     Toyin Olayinka Tejidini     Ibrahim Abikan     Abdulwahab Oba     20 Billion Bond     PharmAccess Foundation     Taofeek Ibraheem     Akorede     Ishaq Abdulkarim     Mohammed Alabi Lawal     Otuka     Yusuf A. Usman     March 18     Sheikh Ridhwanullah     Ibrahim Abdullahi     Kumbi Titiloye     Saka Keji     Bello Oyedepo     Ado Ibrahim     Shehu Adaramaja     Gbemisola Saraki     Kayode Ishola     Kisra     Doyin Awoyale     Mustapha Akanbi     Adamu Ibrahim Sabi     Minister     Tafida Of Kaiama     Waheed Ibrahim     Ilorin Innovation Hub     Photo News     AGF Abdulrazaq     Tunde Mukaila Mustapha     Kwara State Pension Board     Tinubu     College Of Health     Quranic Recitation Competition    

Cloud Tag: What's trending

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

Sambo Murtala     Adamu Attah     Bola Shagaya     Teachers Specific Allowance     State Bureau Of Internal Revenue     Kola Shittu     AbdulRasaq Abdulmajeed Alaro     General Hospital, Ilorin     ASMAU PLAZA     Egbejila     Pilgrims Board     IPSAS     Saka Balikis Kehinde     Saadu Gbogbo Iwe     Azeez Salawu     TESCOM 2025     Doyin Group     Abdulrauf Yusuf     Tafida Of Kaiama     Yomi Adeboye     Ojuekun     Firdaos Amasa     Kwara State University Of Education     Salihu S. Yaru     Lukman Adeloyin     Aisha Buhari     Kwara Central     VADA     Ado Ibrahim     Minister     SAPZ Project     Daud Adeshola     Senate President     Lukman Oyebanji Fagbemi     Lai Gobir     Okin High School     Oniwasi Agbaye     Solomon Edojah     Baba-Isale     Prince Sunday Fagbemi     Federal Allocation     Femi Oladiji     Amoyo     LABTOP     Fareedah Dankaka     Kwara State Television     Ekweremadu     Y.A. Abdulkareem     Oke-Ero     Ahmed Ayinla Jimoh     Umar Ayinla Saro     Kassim Babamale     Abubakar Kawu Baraje     Bayer AG     Third Estate     Yahaya Abdulkareem     Ahmad Uthman     Baba Issa     Iyabo Dupe Adekeye     KWIRS     Simeon Sayomi     CCEPE     Gbadeyan Gbadura Yomi     Abatemi Usman     Rafiu Olasile     Yusuf Ibitokun Sherifat     Ola Falade     C2c@kwarastate.gov.ng     Laduba     Ballah     Maryam Nurudeen     Makama     Vishvas KOZ Tractors     Council Of The Wise     Economic And Financial Crimes Commission     Ubandoma     Esinniobiwa Quareeb