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.

Mamatu Abdullahi     Abdullahi Saadudeen Alikinla     Popo-Igbonna     Oke-Oyi     Sobi Specialist Hospital     Ahmed \'Lateef     Yashikira     Muhammad Toyin Sanusi     S.O. Opowoye     Young Progressives Party     Abdulkadir Jimoh     Ayodele Kuburat Olaosebikan     KWSUED     Fatimoh Lawal     Just Law Forum     Borgu     Kazeem Gbolagade     Nigeria Governors\' Forum     Garba Idris Ajia     Muhammed Abdullahi     Aliyu Muyideen     Rihanat Ajia     KWTV     Saad Omo\'ya     Charcoal     Daud Adeshola     ENetSuD     Kwara South     Abdulazeez Uthman     Ahmed     Olatunde Michaels     Opobiyi     Oro Grammar School     Kwara State Polytechnic     Prince Mahe Abdulkadir     Sheikh Alimi     Shehu Raheem Adaramaja     Alore     Hausa     Kwara Liberation Group     Orisa Bridge     Aliyu Salihu     Theophilus Oyebiyi     Dele Momodu     Ishak Mohammed Sabi     Shagari     Musa Ayinla Yeketi     Segun Adeniyi     Sa\'adu Gambari     KWSIEC     Razaq Ayobami Akanbi     Inside Kwara     Amada Jidda     Hajj     Kwara State Printing And Publishing Corporation     Student Learning Support Helpline     Oluranti Idowu     Oke-Odo     Sola Saraki University     Elerin Of Erin-Ile     Lanwa     Ayo Opadokun     Ile Arugbo     Bayo Lawal     Tunji Folami     Kulende-UITH     Fatimah Abdulkadir     Ilorin     Ishola Moses Abiodun     Mashood Abdulrafiu Agboola     Universal Basic Education Commission     Ado Bayero     Government Girls’ Day Secondary School Pakata     Valsolar Consortium     Baakini     Ahmed Bayero     Abdulkadir Akanbi-Oke    

Cloud Tag: What's trending

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

Razaq Atunwa     Sa\'adu Salahu     Prince Mahe Abdulkadir     Abubakar Abdulraheem     Adamu B. Yaqubu     Maimunat Oniyangi     Nurudeen Muhammed     Savannah Centre For Diplomacy, Democracy And Development     Mahmud Babatunde Baker     Bello Oyebanji     Donatus Ejidike     Binta Abubakar-Mora     KWACOBPA     Ayo Salami     Owu Fall     EndSARS     Zainab Abass     Olabimpe Olani     Ahmed Ayinla Jimoh     Hijab     Ayedun     Oloje     Kayode Yusuf     Offa Poly     Abdulfatah Ahmed     Razaq Ayobami Akanbi     Ramat Oganija     Mustapha AbdulGaniyu     Yusuf Abubakar     Sobi FM     Valsolar-Kwara Company Limited     Agor     Old Oyo     Bibire Ajape     Al-Ilory     ER-KANG Mining     Ajikobi     Towobola Abdulrahman Toyin     Sulyman Age AbdulKareem     Saadu Alanamu     Niyi Ogundiran     Olatinwo     Revenue Court     Prince Bola Ajibola     Biliaminu Aliu     CELF     John Olobayo     Omoniyi M. Ayinla     Plat Technologies Limited     Ahmad Uthman     James Ayeni     Abdulkadir Akanbi-Oke     Ayekale     IDPU     Abdulhakeem Amao     Al-Hikmah Radio     Afetu Of Alabe     Clement Yomi Adeboye     Aiyedun     First Lady     Computer Based Test     Abdulmumini AbdulRazaq     Fulani     Bola Sagaya     Bukola Saraki     Mohammed Khadijat Kubura     Oluwarotimi Boluwatife Adenike     Elese Of Igbaja     Okin Biscuits     Femi Ogunsola     Jani Ibrahim     Kwara Muslim Pilgrims Welfare Board     Village Alive Development Association     AbdulKareem Yusuf Danhawa     Woro     National Information Technology Development Agency     Owo Isowo