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.

National Association Of Nigerian Students     Niyi Ogundiran     Ilesha-Baruba-Gwanara     Umar Danladi Shero     Ganiyu Abolarin     Patigi Regatta     Oro Grammar School Old Students Association     AIT Ilorin     Agboola Abdulraheem     Adisa Logun     First Lady     Ilorin West     REO CAKES     Mary Arinde     Turaki Of Ilorin     CKNG     Dapo Teni Nig Enterprise     Bisi Kristien     IESA     Oke-opin     Mahe Abdulkadir     Kwara Apc     Tope Daramola     Raheem Adaramaja     Olaiya Zuberu     Emir Of Kano     Ajasse-Ipo     Mohammed Ajia Ibrahim     Government High School Adeta     Kwara Liberation Group     TIIDELab     Jebba     Adamu B. Yaqubu     Aliyu Muhammad Saifudeen     Abdulmumin Yinka Ajia     Harrison Osauwagboe     Kwara Politics     COVID-19 Palliatives     Galadima     Kehinde Baale     Garment Factory     Dairo Kunle Paul     Abdulrauf Aliyu     Students Union Government     Young Progressives Party     Sobi Hill     IDPU     CBT     Kale Ayo     Mashood Abdulrafiu Agboola     Oba Abu     Oyedepo     Tunji Oyawoye     Muhammadu Gobir     Kawu Baraje     Ado Bayero     Yashikira     Alfa Yahaya Road     Hijaab     Kola Olota     Samuel Adedoyin     Adamu Ibrahim Sabi     Rafiu Ibrahim     JSSCE     Reuben Paraje     Yahaya Jibril Usman     Saidu Yaro Musa     2023 Elections     Sarafadeen Kayode Akorede     Millennium Development Goals     Yusuf AbdulRasheed     NULGE     Mutawalle     Segun Adeniyi     Ibrahim Abikan     Mohammed Jimoh Faworaja     Mike Omotosho    

Cloud Tag: What's trending

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

AbdulHakeem Ajibola Akanbi     Abiodun Jacob Ajiboye     Ahmed Bayero     Olufolake Abdulrazaq     Kayode Zubair     Omotoso Musa     ASUU     Rex Olawoye     Salihu Ajia     Democracy Day     Ariyo     Alao Ayotunde     Taiwo Joseph     Afin Descendants Union Of Odo-Owa     Abdulraheem Olesin     Okoolowo     Owu Fall     Mutawali     V.O. Abioye     Oye Tinuoye     Iliasu     Congress For National Consensus     Christopher Odetunde     Michael Imoudu National Institute For Labour Studies     Kwara State Polytechnic     Sunday Otokiti     Toyin Saraki     Baruba     David Adesina     Ibikunle Ogunleye     Kayode Bankole     Alapado     Aminu Ado Bayero     Tinubu Legacy Forum     Ilorin Amusement Park     Tosho Yaqub     Oba-Solagberu     National Broadcasting Commission     Kola Bukoye     LEAH Charity Foundation     Hassan Abdulazeez Elewu     Kazeem Oladepo     Musa Ayinla Yeketi     Oba Abdulrahim     Zulkifli Ibraheem     Abdulrazak Shehu Akorede     Lukman Oyebanji Fagbemi     Kamaldeen Gambari     Demola Banu     Quareeb     Pilgrims Board     Lanwa     Senate Presidency     HAMFAT Clinic And Maternity     PharmAccess Foundation     Alapansapa     Oyun     Tayo Alao     Orire     Edu     Sa\'ad Alanamu     Maimunat Oloriegbe     Kwara-SAPZ Project     Joseph Alex Offorjama     Rotimi Atere     Pius Abioje     Abdulmajeed Wahab     Oladimeji Thompson     Baba Isale     Razak Atunwa     Academic Staff Union Of Universities     Chief Imam Of Offa     Olatunji Ayeni     Kwara NIPR     Boko Haram     Lanre Issa-Onilu     Olofa Of Offa