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.

Akanbi-Oke     Muideen Olaniyi Alalade     Yetunde Balogun     Basic Education Certificate Examination     Olayinka Jelili Yusuf     Gbenga Olawepo     Issa Memunat Moyosore     Gambari     Kwara 2019     Lasiele Alabi Yahaya     Kehinde Boyede     Kwara North     Kwara State Fish Farmers Association     SSA Youth Engagement     Oyeyemi Olasumbo Florence     Village Alive Development Association     Tinubu Legacy Forum     Rebecca Olanrewaju     Hikmah AbdulKareem     Women Radio     Kwara State Governor     Makama Of Kaiama     Bio Ibrahim     Government House     Segun Adeniyi     Ghali Muhammed     John Obuh     Bola Magaji     Kwara Liberation Group     Adama Isa     Dankaka     Mutawali     Bature Bello     Rachael Obisesan     Ibikunle Ogunleye     Okasanmi Ajayi     Abubakar Abdulraheem     All Peoples Party     Oluronke Adeyemi     Suleiman Mora Omar     Firdaos Amasa     Kwara State Government     Christopher Tunji Ayeni     Fatai Adeniyi Garba     Ibrahim Mashood     Rueben Parejo     Temitope Ogunbanke     KWTV     Kwabes     Salaudeen Oyewale     Saliu Ajia     Bluenile Associates     Omoniyi     Mogaji Aare     Ibraheem Adeola Katibi     Oluwarotimi Boluwatife Adenike     Shehu Alimi Foundation For Peace And Development     Kwara State Geographic Information Service     Shonga Farm Project     Emir Of Kano     Ayobami Seriki     Matthew Okedare     Siddiq Adebayo Idowu Salawu     Isiaq Khadeejah     Adedipe     Al-Adaby     Sabi     Aminu Adisa Logun     Talaka Parapo     Kola Shittu     Abdulkadri Ahmad Alaiye     Laduba     Mustapha AbdulGaniyu     Alaaya     Saka Keji     Egbejila     Niyi Ogundiran    

Cloud Tag: What's trending

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

Yahya Mohammed     Mohammed Tunde-Jimoh     Abdulfatah Ahmed     Raymond Olaitan     Shuaib Boni Aliyu     Elerinjare     Biliaminu Aliu     Idris Garuba     Folaranmi Aro     Yahaya Abdulkareem     Bilikisu Oniyangi     Matthew Okedare     BIR     Lanre Issa-Onilu     Abdulbaqi Jimoh     Suwa-Arabs     JAAC     Bukola Saraki     Baboko Primary School     Ahman Patigi     Modupe Oluwole     Durbar     March 18     Bola Iyabo Ibiyeye Adisa     Lukman Oyebanji Fagbemi     C2c@kwarastate.gov.ng     Oni Adebayo     Nigeria Computer Society     Bayer Nigeria Limited     Solomon Edojah     Adolescent Girls Initiative For Learning And Empowerment     Abdulmumini AbdulRazaq     TETFUND     Binta Sulyman     Shehu Salau     Binta Abubakar-Mora     Gobir Organization Foundation     Ado Bayero     GRA     Dumagi     Umar Yakubu Jaja     Abdulrahman Abdulrazaq     Muritala Olarewaju     Ridwan Agboola     Olajumoke Monsura Gafar     Taofeek Sanusi     Waheed Ibrahim     Kwara Basketball Association     Ijagbo     Neo Mundo Ltd     Olokoba     Grillo     Oba Abu     Afonja Descendants Union     Aliyu Umar     Lawal Olohungbebe     Kwarareports     Abdulrasaq Alaro     Kishira     Oba Of Jebba     Lawan     Omotosho     Ibrahim Taiwo     All Peoples Party     Olokoba Sulyman     Amuda Aluko     Elesie Of Esie     Abubakar Baba     Iyaloja-General     Nigeria Customs Service     Tafida Of Kaiama     Senate Presidency     Oke-opin     Oasis Muslim Care Foundation     Ilorin Talaka Parapo     Christopher Tunji Ayeni     KWAFFA