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.

NTA Ilorin     ER-KANG Mining Nigeria Company Limited     Opolo Global Innovation Limited     Quranic Recitation Competition     Yusuf Olaolu Ali     Kazeem Adekanye     Tunde Saad     Oyeyemi Olasumbo Florence     Edu     Tayo Alao     Minimum Wage     Olabode Towoju     Saad Omo\'ya     Tsaragi     Stephen Fasakin     Abdulwasiu Bolaji Adeyi     Olam Food Ingredients     AbdulFatai Adeniyi Dan-Kazeem     Kwara 2023     Moshood Bakare     Atiku     Abdulmumini Jawondo     First Lady     Ibrahim Akaje     Kwara-SAPZ Project     Abdulwahab Ololele     Ayegbeni     Amasa     Abdullahi Dasilva Yussuf     Bisi Oyeleke     Ahmed Idris Mohammed     Femi Oladiji     Alore     VADA     GANZY     Ahmad Belgore     Saduki Lafiagi     Olaitan Adefila     Femtech     Isapa     Olusola Saraki     Sherif Sagaya     Kunle Suleiman     Nigeria Association Of Women Journalists     Garuba Alikinla Shittu     Buari Edun     Toyin Olayinka Tejidini     Transition Implementation Committee     Ojo Isekuse     Suleiman Alege Kuranga     Ilorin Durbar     Ganmo Electricity Sub-Station     Fatai Adeniyi Garba     Lola Ashiru     Ajibike Katibi     CELF     TESCOM     Sarafadeen Kayode Akorede     Ajayi Okasanmi     Yoonus Kola Olatinwo     Gbajabiamila     Ohoro Of Shao     Okin Biscuits     Sobi     Harrison Osauwagboe     Ayo Salami     Ike Ekweremadu     Amoyo     MMWG     Kawu     Centre For Community Empowerment And Poverty Eradication     Kwara State Fire Service     Abdul Jimoh Mohammed     John Dara     Bank Of Industry     Adesina Simon Sodiya     Ibrahim Orire    

Cloud Tag: What's trending

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

Awwal Jawondo     Abubakar Baba Sulaiman     Ajakaye     Hausa     Ebola     Hamidat Sulyman-Yusuf     Timothy Akangbe     National Broadcasting Commission     Theophilus Oyebiyi     College Of Health     Sobi     Gobirawa     Aliyu Muhammad Saifudeen     Elewu     Emmanuel Olatunji Adesoye     Marufat Oladosu     Amuda Aluko     IFK     Orisun Igbomina     Kwara Teaching Service Commission     Benin Republic     Musbau A. Akanji     Shururat Olatinwo     Societe Generale Bank Of Nigeria     Alabi Olayemi Abdulrazak     Niguel Gallando Marcias     Alapado     Apaola     Convocation Ceremonies     Musa Alhassan Buge     Babatunde Ishola Babaita     Neuropsychiatric Hospital     Saka Balikis Kehinde     Ajasse-Ipo     Yusuf Lawal     Bashir Adigun     Abdullahi Samari     Saka Adeyemo     Oke-Kura     Saka Saadu     ARMTI     Oro Grammar School Old Students Association     Moses Adekanye     Nigerian Supreme Council For Islamic Affairs     Afolabi-Oshatimehin Adenike Harriet     Deji Ajani     Fatai Garuba Labaka     Communication Network Support Services     NFAI     Olabode Towoju     Trader Moni     Salake     Durbar     Sarafadeen Kayode Akorede     Bola Iyabo Ibiyeye Adisa     Amosa     Gbenga Olawepo     Atiku Abubakar     Al-Hikmah Radio     Ahman Pategi University     Ojo Fadumila     ANCOPPS     Iyabo Adewuyi     Aiyedun     Ilorin South Constituency     Binta Abubakar-Mora     Omoniyi Ayinla     Ahmed Bayero     Baba Issa     Abubakar B.M     Sa\'ad Alanamu     Abdulazeez Uthman     Olusegun Adeniyi     Noah Yusuf     Surajudeen Akanbi     Damilola Yusuf     Hassanat Bello