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.

Susan Modupe Oluwole     Dan Iya     Ilorin South     Oniwasi Agbaye     Adama Isa     David Oyerinola Adedunmoye     Igbaja     Sheikh Ariyibi     Jalala     Durosinlohun Kawu     Folorunsho Erubu     Omotoso Musa     Tunde Akanbi     Olajumoke Monsura Gafar     Lawal Olohungbebe     Iyabo Adewuyi     Yusuf Aiyedun     Mogaji Aare     Fola Consultant     Peculiar Allowance     Asiwaju Bola Tinubu     Saka Isau     Fawenu     Arinola Fatimoh Lawal     Yahaya A Paniyaro     Haruna Olawale Sulaiman     Isapa     A.E. Afolabi     Olaiya Victor Mobolaji     Summit University     Saudat Abdulbaqi     Olomu     Ishola Abdullahi     Abdulkarim Adisa     Yaru     Olupako     Nurudeen Muhammed     Ahmed Bolaji Nagode     Yakubu Gobir     Erubu Oba Zubair     Muhammad Fawaz Abubakar     Bolaji Abdullahi     Naira Redesign     Convocation Ceremonies     Isiaka Oniwa     Abdulmajeed Abdullahi     Mahe Abdulkadir     James Kolo     Olateju Lukman     Dauda Adesola     Abiodun Musa Aibinu     Universal Basic Education Commission     CCEPE     Abdulrahman Iliasu     Muhammad Ghali Alaaya     Muhammed Akanbi     Shola Odetundun     IPSAS     Gwanara     Mufutau Olatinwo     Abdulwaheed Musa     Iyiola Oyedepo     Suleiman Yahya Alapansapa     Bola Shagaya     Ilorin Descendants Progressive Union     Abubakar Ndakene     Ayinde Oyepitan     AGILE Programme     Idris Amosa Oladipo Saidu     Abdulrasheed Lafia     Aliyu Alhassan     Ahmed Idris Mohammed     Kwara TV     Kulende     Ope Saraki     SSA Youth     Awwal Jawondo    

Cloud Tag: What's trending

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

Eleja Taiwo Banu     Forgo Battery Company Limited     Bilikisu Gambari     KWIRS     Dankaka     Bola Tinubu     Iyaloja-General     Oasis Muslim Care Foundation     Ijagbo Health Centre     Salaudeen Oyewale     Oyun     Kehinde Baale     Lanre Jimoh     Rasheed Jimoh     March 18     UTME     Hamidu Olowo     Biliaminu Aliu     Academic Staff Union Of Universities     Patience Jonathan     Irepodun     CT Ayeni     Aso-ofi     Mahee Abdulkadir     Abiodun Abdulkareem     Elese Of Igbaja     Kwara Basketball Association     Aliyu Muyideen     NIRSAL     Bello Taoheed Abubakar     Makama     Iqra Books     Temi Kolawole     M.Y. Abdulrahaman     Aliyu Kora Sabi     Afeyin-Olukuta     National Democratic Congress     Alimi Abdulrazaq     Moses Afolayan     First Lady     Suleiman Alege Kuranga     Elerin Of Erin-Ile     Isa Aremu     Danladi     Durbar Festival     Salman Jawondo     Prince Mahe Abdulkadir     Christopher Tunji Ayeni     Coalition Of Kwara North Groups     Nagode     Magaji Erubu     Oro Grammar School     Abdulmumin Yinka Ajia     Aasiyat Bello Oyedepo     Yusuf Lanre Badmus     Al-Adaby     Ghali Alaaya     Tsaragi/Share     Saka Adeyemo     Ajikobi     Isiaka Rafiu Mope     Rebecca Bake     Unilorin FM     Afin Descendants Union Of Odo-Owa     Tunde Yusuf     Abdullahi Imam Abdullahi     Haruna Olawale Sulaiman     Senior Ibrahim Suleiman     Ayo Salami     Onilorin Of Ilorin     Kishira     Okin Biscuits     Fareedah Dankaka     Folorunsho Erubu     Kale Bayero     Bayo Onimago     Tunde Idiagbon Road