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.

Bola Tinubu     Abubakar Abdulraheem     Ilorin Metro Park     Ibrahim Taiwo     Oba Abdulraheem     Abdulmutalib Shittu     Federal Neuro-Psychiatric Hospital     Sayomi     Akande Idowu Ayoola Muhammed     Ezekiel Yissa Benjamin     Prince Bola Ajibola     Ifelodun     Hakeem Idris     Zainab Abass     Prince Mahe Abdulkadir     Babaita     Babatunde Idiagbon     Ibrahim Mashood     Ali Ahmad     John Mayokun Dada     Joseph Bamigboye     AbdulGafar Tosho     Oke-Ero     Nagode     Femi Gbajabiamila     Saliu Oluwole     Imam Gambari     Niguel Gallando Marcias     Tsaragi/Share     Mary Kemi Adeosun     Bayo Mohammed Onimode     Hameed Oladipupo Ali     Ogidi-Oloje     Adekunle David Dunmade     Tafidan Kaiama     Pakata Development Association     Crystal Corner Shops     Ibrahim Abikan     Adebayo Salami     Okin Biscuits     Dankaka     Kwara State Coalition Of Business And Professional Associations     Ganmo Power Sub-Station     Babajide Ajayi     Mohammed Halidu     Aliyu U. Tilde     Ilorin Amusement Park     Mahmud Ayinla Giwa     Moses Salami     Femi Agbaje     Mustapha AbdulGaniyu     Surajudeen Akanbi     Femtech     Yahaya Seriki Gambari     Medinat Folorunsho Salman     Busari Toyin Isiaka     Issa Oloruntogun     First Lady     Ilorin Muslim Community     SGBN     Saka Isau     REO CAKES     NSCIA     Tunji Arosanyin     Timothy Olatunde Fadipe     Tanke Road     Kazeem Oladepo     Bond     Geri-Alimi Split Diamond Interchange     Oloyede     Rafiu Ibrahim     Jide Ashonibare     Taofeek Ibraheem     Logun     Vasolar Consortium     Joshua Adeyemi Adimula     Aliyu Sabi    

Cloud Tag: What's trending

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

Suleiman Alege Kuranga     Olatunji Moronfoye     Joseph Alex Offorjama     Ahman Pategi University     Gbenga Awoyale     Adebara     Kwara 2015     Sa\'adu Salahu     Vasolar-Kwara Company Ltd     Federal College Of Education (Special), Afon     Balikis Jawondo     BECE     Adeniyi Ojo     Vasolar     Wahab Egbewole     Garba Ayodele Wahab     Bayo Mohammed Onimode     Tanke     Funke Adedoyin     Adamu B. Yaqubu     Sanitation Exercise     Afin Descendants Union Of Odo-Owa     Apata Ajele Secondary School     Abdulwaheed Musa     Kwara State Pension Board     Mustapha AbdulGaniyu     Abdulmajeed Abdullahi     Oniwasi Agbaye     Abdullahi Biffo     Matthew Babaoye     Lafiagi     Isiaka Danmeromu     Akeem Lawal     Ladi Hassan     Centre For Community Empowerment And Poverty Eradication     Jaigbade Alao     Share     Olaiya Zuberu     Oke-Odo     Kanu Agabi     Razak Atunwa     Simeon Ajibola     Unicontinental Construction Company     Ibrahim Issa Jetti     Saba Jibril     Sam Okaula     Chief Imam Of Ilorin     Sarkin Malamai     Yakub Lai Gobir     Lanre Badmas     Kuliyan Geri     Yekeen Alabi     Muslim Cementary     Geri-Alimi Split Diamond Interchange     Musbau A. Akanji     Mohammed Ghali Alaaya     Durbar     Soffiyyallah Kamaldeen     Sobi Specialist Hospital     Kwara State Government     Aishat Mohammed Lawal     Bursary     Onilupeju Of Ilupeju     Roseline Oni Aremu     Oko-Erin     Chief Imam Of Offa     Principal Private Secretary     Saad Omo\'ya     UNIFEMGA     Gwanara     Kwara     Sulu Gambari     Muhammed Aliyu     Henry Olaosebikan     Ubandawaki     Chief Imam Of Lafiagi     Abdulrauf Yusuf