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.

Salihu Ajibola Ajia     Lawan     Gani Saadu     Crystal Corner Shops     Olufolake Abdulrazaq     Dan Masanin     Eghe Igbinehin     Abdulrahman Abdullahi Kayode     Abdulquowiyu Olododo     Abdulwahab Oba     Kwarareports     Yusuf Olaolu Ali     Idowu Aremu     Rashidi Yekini     Moshood Mustapha     Bola Shagaya     Abdullahi Dasilva Yussuf     Oko-Erin     Iyaloja-General     Justina Oha     Suleiman Mora Omar     Moshood Kashimawo Abiola     Yusuf Amuda Gobir     National Broadcasting Commission     Surajudeen Akanbi     Akom Construction And Engineering Synergy Ltd     Democracy Day     Lanre Issa Onilu     Mamatu Abdullahi     Ibrahim Akaje     Babaita     Nagode     Abdullahi Atanda     Olatunji Abdulmumeen     Abdulkadri Ahmad Alaiye     Joseph Alex Offorjama     Monsurat Omotosho     Tunji Oyawoye     Tafida Of Ilorin     Muhammadu Gobir     Funmi Salau     Unicontinental Construction Company     National Party Of Nigeria     ENetSuD     Jimoh Lambe Abdulkareem     Abdulrasheed Na\'Allah     Funke Adedoyin     Musa Abdullahi     Tunde Idiagbon Road     Bilikisu Gambari     ASKOMP     AbdulHamid Adi     Majlis For Sadakah, Zakat And Waqf     Olokoba Abdullahi Ayinla     MINILS     Muslim Stakeholders Of Kwara State     Kwara State Television (KWTV)     Gobir Organization Foundation     Ayegbeni     Coalition Of Kwara North Groups     Tunde Saad     Olayinka Oladapo Jogunola     Babata     Gbemi Saraki     KWIRS     Old Oyo     Yaman     Shehu Alimi Foundation     Offorjama     Ayo Opadokun     Salaudeen Oyewale     Share/Tsaragi     National Information Technology Development Agency     Yashikira     Ishaq Salman     Saliu Ajia     Ilorin Emirate    

Cloud Tag: What's trending

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

Igbaja     Amina El-Imam     Ilorin Airport     Umar Ahmed Gunu     EndSARS     Awwal Jawondo     Mahfouz Adedimeji     Press Release     MATTA Girls Foundation     Ademola Kiyesola     Victor Gbenga Yusuf     Kamaldeen Gambari     Muslim Media Watch Group Of Nigeria     TESCOM     Saka Asiat Ayinke     Haliru Yahaya     Abdulrosheed Okiki     UNILORIN Alumni     Yusuf Mubarak     Oluwatoyin Lukman     AbdulHakeem Ajibola Akanbi     Ganmo Power Sub-Station     Mumeen Lah     Yakub Ali-Agan     Bayo Lawal     Lanre Olosunde     Damilola Yusuf     Moses Afolayan     AbdulRazaq AbduMajeed Alaro     Imam Gambari     Sobi Hill     ASUU     Akom Construction And Engineering Synergy Ltd     Raliat AbdulRazaq     College Of Health     Afetu Of Alabe     Abdulrahman Onikijipa     Abdulganiyu AbdulAzeez     Buhari     Muideen Olaniyi Alalade     Senior Ibrahim Suleiman     Dasuki Belgore     EFCC     Salihu Alhaji Musa     Senior Special Assistant On Student Affairs     Fatima Abolore Jimoh     Rabiu Kwankwaso     Offorjama     Joseph Offorjama     Bola Iyabo Ibiyeye Adisa     Ghali Alaaya     Mohammed Katsina Ahmed     Ilorin Muslim Community     Saliu Mustapha     Ijagbo     Moshood Mustapha     Aisha Gobir     IHS     Bashir Adigun     Omoniyi M. Ayinla     Kwara State University Of Education     Kubra Kazum     KWASSIP     Abdulsalam Firdaous Amosa     Jalala     Fatimoh Lawal     Galland Marcias     Markaz Arabic And Islamic Training Institute, Agege     Ahmad Uthman     Quareeb Islamic Association     Isin     Government High School (GHS), Adeta     Ibrahim Abiodun     Y.A. Abdulkareem     Baba Issa     Olokoba Abdullahi Ayinla     NSCIA