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.

Ibrahim Mohammed     Forgo Battery Company Limited     Susan Modupe Oluwole     Bamikole Omishore     Kwara Volleyball Association     Olushola Saraki     Kwara Restoration Project     Ramadan     Government High School Adeta     Bolakale Ayo     Yomi Adeboye     Innocent Okoye     Olohungbebe     Tunde Saad     Elerin Of Erin-Ile     KFA     COVID-19 Palliatives     Issa Baba     Yetunde Balogun     Okedare     Temi Kolawole     Kwarareports.com     Akom Construction And Engineering Synergy Ltd     Garment Factory     NNPP     Owu Fall     Sango-UITH Road     Baboko     Shaaba Lafiagi     Kwabes     Olatunji Moronfoye     Issa Memunat Moyosore     Goodluck Jonathan     Kayode Ishola     Salman Jawondo     Salman Alada     Gaa Olobi     Muhammed Akanbi     Aliyu Kora-Sabi     Tsaragi     COEASU     Offa Poly     Saadu Yusuf     Trade Lenda SME Fair     Okanlawon Taiwo     Olam Food Ingredients     SSA Youth Engagement     Moro     Fatimat Saliu     Saka Onimago     Kwara State Television     Moshood Bakare     Taofeek Ibraheem     Agboola Abdulraheem     Alfa Modibo Belgore     Association Of Kwara State Online Media Practitioners     Lai Gobir     Sanusi Abubakar     Kisira     Baba Idris     Afolasade Opeyemi Kemi     Albert Ogunsola     Salaudeen Oyewale     Agor     Kwara State University Of Education     Majlis For Sadakah, Zakat And Waqf     Abdulrazak Shehu Akorede     Mufti Of Ilorin     ITP     Monkey Pox     Afolabi-Oshatimehin     IsDB     Rachael Obisesan     Kayode Oyin Zubair     Summit University     Tunji Oyawoye     Oya State    

Cloud Tag: What's trending

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

Aishat Sulu-Gambari     Ayodele Kuburat Olaosebikan     Gbugbu     IYA ALFA NLA     Park     Abdulmumin Yinka Ajia     Ayodele Shittu     JMK Construction Company Limited     Olatunji Ibrahim     Osinbajo     Isaac Aderemi Kolawole     Florence Saraki     Undergraduate Bursary     Toyin Falola     Al-Hikmah University     Kwarareports     Mashood Dauda     Hassan Oyeleke     Yeketi     Kwara     Elesie Of Esie     Mohammed Alabi Lawal     Hameed Oladipupo Ali     College Of Health     Abdulbaqi Jimoh     Okin High School     Alliance For Democracy     NULGE     Hamidu Olowo     Rafiu Olasile     Issa Oloruntogun     Jawondo     Yakub Lai Gobir     Idowu Laro     Omupo     Valsolar Consortium     Esuwoye     Www.Kwarareports.com     Kwara State Health Insurance Agency     Ilota     Sa\'ad Alanamu     Kwara State Football Association     Owo Isowo     Ekweremadu     Ishola Moses Abiodun     Oluwole Dupe     Olayinka Olaogun     EFCC     Olosi Of Osi     Ajayi Okasanmi     Pakata Patriots     Mamman Saba Jibril     Vasolar Consortium     Shehu Jimoh     Kawu Baraje     AGILE Programme     Logun     Madawaki Of Ilorin     Toun Okewale-Sonaiya     Women For Change And Development Initiative     April 11     Abdulmalik Bashir Mopelola Risikatullahi     Yusuf Lanre Badmas     Hussein Olokooba     General Tunde Idiagbon International Airport Ilorin     Bibire Ajape     Suleiman Rotimi Iliasu     Medview Airlines     GANZY     Okin Group     Ayoade Akinnibosun     Labour Party     Arinola Lawal     Owo Arugbo     Nigerian Supreme Council For Islamic Affairs     Olayinka Are     Aminat Omodara