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.

Alabe     Dar-Al-Handasah Consultants Ltd     Saliu Ajibola Ajia     Lanre Olosunde     Salman Suleiman     Seni Saraki     Abdulkadir Akanbi-Oke     Oke-Odo     Kola Ologbondiyan     Magaji Are     Bayo Ojo     Sabo-Oke     Tafidan Kaiama     Adamu Jemilat-Baki     Age AbdulKareem     Ilorin Likeminds Foundation     GRA     Chief Imam Of Lafiagi     Majlis For Sadaqah, Zakat And Waqf     Kwara State Television (KWTV)     Pacify Labs     Omotosho     Tunji Oyawoye     Sulyman Atolagbe Alege     Ayedun     Sardauna     Abdullahi AbdulMajeed     Rice Farmers Association Of Nigeria     Femi Oladiji     Salihu Ajibola Ajia     JMK Construction Company Limited     ER-KANG     Junior Secondary School Certificate Examinations     Alapansapa     Government Girls’ Day Secondary School Pakata     RTEAN     Simeon Sule Ajibola     Nigerian Medical Association     The Herald     National Party Of Nigeria     Alfa Yahaya Road     Apata Ajele Secondary School     Emmanuel Bello     Innocent Okoye     Bello Bature     Aro Yahaya     Toyin Sanusi     Marufat Oladosu     Onilorin     Ubandoma Of Ilorin     KSIRS     Baba-Isale     Ezekiel Yissa Benjamin     Ijagbo Health Centre     Afin Descendants Union Of Odo-Owa     Waziri Yakubu Gobir     Obuh     Elerin Of Adanla     Salami Adekunle     Abdullateef Abdussalam     General Hospital     Elesie Of Esie     Ajidagba     Gbajabiamila     Vasolar Consortium     LAK Jimoh     Mohammed Ghali Alaaya     AGF Abdulrazaq     Nigeria Customs Service     Valsolar     Amuda Musbau     Tunji Moronfoye     Local Government     Olokoba     N-Power     Oke Sunna     Raji Ayodele Kamaldeen    

Cloud Tag: What's trending

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

Kwara 2023     Isiaka Saka Opobiyi     Iyaloja-General     Pilgrims Board     Temitope Ogunbanke     CCEPE     Oba Abdulkadir La\'aro     Mamman Saba Jibril     Transition Implementation Committee     Paul Odama     Yakubu Dogara     Kola Adesina     David Adesina     Ajayi Okasanmi     VADA     Bolakale Kawu     Ahmed \'Lateef     Victor Gbenga Yusuf     Eleja Taiwo Banu     Oloyede     Al-Hikmah Radio     Forgo Battery Company Limited     Saad Omo\'ya     Sadiq Buhari     Imam Gambari     Academic Staff Union Of Universities     KWATMA     Bayer AG     Wahab Abayawo     Asiwaju Bola Tinubu     Convocation Ceremonies     Iyeru Grammar School     Isiaq Khadeejah     Lanre Issa Onilu     IEDPU     KWSIEC     Yusuf Badmus     Joseph Bamigboye     Doyin Agbamu     Mubarak Oladosu     Oke-Kura     Teachers Specific Allowance     Mahe Abdulkadir     General Tunde Idiagbon International Airport     Idiagbon     3MTT     Bahago     Lanre Badmus     Kwara Central     Olugbense     Muhammed Mahe Abdulkadir     Adegoke Bamidele     Undergraduate Bursary     Alimi     JMK Construction Company Limited     Ilorin South Constituency     Bukola Ajikobi     Kwara NIPR     Abubakar Imam     Ilorin Amusement Park     General Hospital, Ilorin     Federal College Of Education (Special), Afon     Kuliyan Geri     Pakata     Lola Olabayo     Fatai Adeniyi Garba     Chief Imam Of Ilorin     Sa\'adu Salahu     ER-KANG     Aminu Adisa Logun     Galadima     AIT Ilorin     Aisha Gobir     Isiaka Danmeromu     Susan Modupe Oluwole     Rotimi Atere     Law School Scholarship