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.

Abdullahi Saadudeen Alikinla     Tunji Olawuyi     Ahmed Bolaji Nagode     Abdulmutalib Shittu     TVC Female National Debate     Bayo Lawal     Kwara 2023     Prince Bola Ajibola     Ambassador Kayode Laro     Emir Of Yashikira     Kupchi Hosea Maxwell     Jebba     Olatunji Ayeni     Adedayo Yusuf Abdulkareem     Yahaya Abdulkareem     Kayode Oyin-Zubair     Matthew Babaoye     Alabi Lawal     Falokun-Oja     Lola Ashiru     Mahmud Ayinla Giwa     Tunde Oyawoye     Bukola Saraki     General Tunde Idiagbon International Airport Ilorin     Katibi Ibraheem Adeola     Umar Gunu     Rex Olawoye     Lafia Aliyu Korasabi     Wahab Kunle Shittu     Ajase-Ipo     VADA     Oniwasi Agbaye     Jawondo     Amosa     Ajibola Ademola Julius     Shettima     Lucky Omoluwa     Oluranti Idowu     Senior Ibrahim Suleiman     Umar Bayo Abdulwahab     Agboola Babatunde     Bluenile Associates     Transition Implementation Committee     Segun Ogunsola     Ajayi Okasanmi     Oyun     Tope Daramola     Sulu Babaita Isiaka     Student Learning Support Helpline     Oba David Oyerinola Adedunmoye     Idofin     Saba Jibril     Abdulrazaq Solihudeen     Sunday Popo-Ola     Kwara Hotel     Wahab Isa     Ekweremadu     Yahaya Muhammad     Abdulazeez Arowona     Emir Of Shonga     Lola Olabayo     ANCOPPS     Isau     Mohammed Alabi Lawal     Kwara State Television (KWTV)     Assayomo     Shehu Alimi Foundation     Wahab Agbaje     Tunde Saad     Salihu Yahaya     Senate     Doyin Group     Hakeem Lawal     Cassava Growers\' Association     Senate President     Abdulwasiu Bolaji Adeyi     Tosho Yaqub    

Cloud Tag: What's trending

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

Yaman     Dan Iya Of Ilorin     Ganmo Electricity Sub-Station     Olusegun Adeniyi     CBT     Tuesday Assayomo     Iyiola Oyedepo     Henry Olaosebikan     Shonga     Olupako     Kale Belgore     Gobir Organization Foundation     Patigi Regatta     Bayer AG     Abiodun Jacob Ajiboye     Pilgrims Board     Bashir Adigun     Benin Republic     Rabiu Kwankwaso     Alore     Afolabi-Oshatimehin Adenike Harriet     Bolaji Nagode     Medinat Folorunsho Salman     Jelili Yusuf     BECE     Basit Olatunji     Ajibike Katibi     NIPOGA     Radio SBS     Adaramaja     Bashir Omolaja Bolarinwa     Adekunle David Dunmade     Adeleke Ogungbe     Shehu Jimoh     Simon Sayomi     Alapansapa     Waziri Yakubu Gobir     Saheed Popoola     Rapheal Ashaolu     Elesie Of Esie     John Dara     Olufolake Abdulrazaq     Oyedun Juliana Funke     Senate Presidency     Sulyman Abdulkareem     ANCOPPS     Salman Jawondo     Damilola Yusuf Adelodun     Bature Bello     Yusuf Ibitokun Sherifat     Yemi Osinbajo     NFAI     CCEPE     Salihu S. Yaru     Segun Ogunsola     Magaji Erubu     Chief Imam Of Offa     Shoprite     Femi Gbajabiamila     Mohammed Lawal Bagega     Aliyu Salihu     Olayinka Are     Hydroelectric Power Producing Areas Development Commission     Principal Private Secretary     General Hospital, Ilorin     Olumide Daniel Ibitoye     Soffiyyallah Kamaldeen     Kola Adesina     Muhammad Fawaz Abubakar     Aliyu Muhammed     Ridwan Agboola     Ayo Adeyemi     Yusuf Mubarak     Sidikat Akaje     Colleges Of Education Academic Staff Union     Siddiq Adebayo Idowu Salawu     Odogun Olushola Gabriel