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.

Dele Momodu     Sulyman Buhari     Mujtabah Bature     Sheriff Olanrewaju     Emir Of Shonga     Shonga Farm Project     Michael Ologundea     Aisha Buhari     S.O. Opowoye     Abdulazeez Uthman     Kolade Solagberu     Ahmed Saidu Rufai     Muhammed Abdullahi     Mazars Consulting     Abdulrosheed Okiki     Kwara State Sports Commission     Alore     Femtech     Apaola     Olusola Saraki     Hamidat Sulyman-Yusuf     Haruna Tambiri Mohammed     Okin Malt     Kayode Bankole     Aliyu U. Tilde     Federal Neuro-Psychiatric Hospital     Yusuf Aiyedun     Kassim Babamale     Moremi High School     Ayodele Kuburat Olaosebikan     AbdulFatai Adeniyi Dan-Kazeem     Fatimat Saliu     Oko-Olowo     Jimoh Akani     High Court     Chief Imam Of Ilorin     Abdulahi Abubakar Bata     Orire     Elelu     Age AbdulKareem     Pakata     Adekunle David Dunmade     Senior Special Assistant On Student Affairs     Moji Makanjuola     Saad Omo\'ya     Siddiq Adebayo Idowu Salawu     Shonga     Habeeb Abdullahi Al-Ilory     Samuel Adedoyin     Ilorin South Constituency     Olayinka Olaogun     Yahaya Abdulkareem Babaita     Odolaye Aremu     Abdulmumini Sanni Jawondo     Saka Keji     Otoge     Turaki     Yahaya Oloriegbe     Firdaos Amasa     Neuropsychiatric Hospital     Admiralty Villa     Osi     Bolaji Nagode     March 18     Gaa Olobi     Azeez Bello     Pakata Development Association     Ibrahim Bio     Dumagi     Makama     3MTT     Omu Aran     Saka Asiat Ayinke     Mohammed Yahaya Barki     Kolawole Akande     Jebba     Suleiman Mora Omar    

Cloud Tag: What's trending

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

Old Oyo     Ilorin East     Ike Ekweremadu     Split Diamond Interchange     Oniwasi Agbaye     Monthly Sanitation     Shettima     Offorjama     Abdulmumini Sanni Jawondo     Kupchi Hosea Maxwell     Baba Issa Awoye     Maigida Soludero Transit     Valsolar Consortium     Sobi Hill     Ahman Pategi University     Kwara State Pension Board     Oja-Oba     Okin Group     Ethical College     Yusuf Aiyedun     Oladimeji Thompson     Al-Ilory     Kayode Yusuf     Salaudeen Oyewale     Funmilayo Isiaka Oniwa     Ibrahim Gambari     Ejidongari     NIPOGA     Yemi Sanni     Joshua Adeyemi Adimula     Stephen Fasakin     Abubakar Abdulraheem     Onilorin     Danhawa     Kwara Basketball Association     Idris Amosa Oladipo Saidu     Fareedah Dankaka     Chikanda     Awoye     Kola Olota     Taiwo Joseph     Prince Sunday Fagbemi     Alikinla     Balogun-Ojomu     Kwara State Printing And Publishing Corporation     Crystal Corner Shops     Funmilayo Oniwa     Tosho Yaqub     Odo-Owa     Abdulraufu Mustapha     SDP     Metro Park     Haashim Initiative For Community Advancement     Durbar     Mohammed Khadijat Kubura     Basit Olatunji     Abdulrauf Aliyu     Olokoba     Rueben Parejo     Emmanuel Bello     Micheal Imodu-Ganmo Road     Vasolar Consultoria     Musa Alhassan Buge     Tsaragi-Share     Olaiya Zuberu     Shehu Salau     TIC     M.Y. Abdulrahaman     Aso Ofi     All Peoples Party     Lasiele Alabi Yahaya     Matthew Okedare     Eleja     Shero     Bolakale Saka     Joseph Yemi Ajayi     Umar Sanda Yusuf