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.

Olateju Lukman     UNILORIN Alumni Association     Ndakene     Ahmad Ali     Balogin Alanamu     Ishaq Abdulkarim     Apado     FOMWAN     Yekeen Alabi     KWAFFA     Shuaib Boni Aliyu     Peter Amogbonjaye     Ishola Abdullahi     Tinubu Legacy Forum     National Party Of Nigeria     Abdulfatai Salman Baakini     Jumoke Monsura Gafar     National Broadcasting Commission     Bluenile Associates     Rihanat Ajia     Idofin     Eleja     Oyedun Juliana Funke     Tayo Awodiji     Maigidasanma     Egbejila     Share-Tsaragi     National Union Of Road Transport Workers     Iyabo Adisa Ibiyeye     Curfew     Sunday Popo-Ola     Olatunji Abdulmumeen     Salihu Ajibola Ajia     Hamidu Olowo     Niyi Ogundiran     Sarah Jubril     Ella Supreme Tissue Paper     Onilupeju Of Ilupeju     Ahmed \'Lateef     Alanamu     Oke-Ero     Aisha Ahman Pategi     Clement Yomi Adeboye     African Democratic Congress     ITEM 7     Saka Adeyemo     Amina Susa\'a De Ahmed     Michael Nzwekwe     Oyelere Oyinloye     Olatunde Michaels     IHS     Madawaki     Muyideen Ajani Bello     Aliyu Olatunji Ajanaku     Ghali Alaaya     Risikat Lawal     Femi Oladiji     Ilofa     Plat Technologies     Okin Biscuit     Monkey Pox     General Tunde Idiagbon International Airport     Joana Nnazua Kolo     Adisa Logun     Lithium     Abiodun Abdulkareem     Adesoye     Nigerian Army     Lola Olabayo     Adolescent Girls Initiative For Learning And Empowerment     Aso-ofi     Sherif Sagaya     Omoniyi Ayinla     Pakata     Laboratory-to-Product     Simeon Sule Ajibola     Bilikis Oladimeji    

Cloud Tag: What's trending

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

Muritala Olarewaju     NYSC     Babs Iwarere     Olajumoke Monsura Gafar     Ambassador Kayode Laro     NAWOJ     AbdulRahman Saad     Muslim Cementary     Mohammed Yahaya Barki     Abdulrazaq Akorede     Unicontinental Construction Company     Lateef Fagbemi     Kaiama     Awoye     Abdullah Janet Amudat     Curfew     Roheemat Hammed     Abdulrahman Iliasu     Marufat Oladosu     Kayode Oyin-Zubair     Ado Bayero     Kwara 2015     Ibrahim Taiwo     Olatomiwa Williams     UNIFEMGA     Yusuf Aiyedun     Kwara     Offorjama     Abdullahi G. Mohammad     Budo-Egba     NaAllah     Share/Tsaragi     Abdulmumin Yinka Ajia     Sa\'adu Salahu     Toyin Sanusi     Idowu Aremu     SDP     Dele Belgore     Senate Presidency     Abiodun Jacob Ajiboye     AbdulHakeem Ajibola Akanbi     Valsolar Consultoria     Economic And Financial Crimes Commission     Bello Abubakar     Yakubu Dogara     Akorede     Ilorin Emirate     Olumide Daniel Ibitoye     Mubarak Oladosu     Osi     Charles Ibitoye     Federal Allocation     Facebook     Split Diamond Interchange     Timothy Olatunde Fadipe     Timothy Akangbe     Ayeyemi Sulaiman     Ijagbo Health Centre     Taiwo Joseph     General Tunde Idiagbon International Airport     Ahmed Saidu Rufai     Ilesha-Baruba-Gwanara     Kamaldeen Kehinde     Yahaya Oloriegbe     Kayode Zubair     EndSARS     Apaola     AbdulQowiy Olododo     Ijakadi     AbdulRazaq Jiddah     Isiaka Danmeromu     Aliyu Sabi     CACOVID Palliatives     Haleeman Salman     March 18     Oniyangi     Ishak Mohammed Sabi