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.

Veterinary Teaching Hospital     Abubakar Kawu Baraje     Okoolowo     Lawan     Oba Abdulkadir La\'aro     Shuaib Jawondo     Local Government Pension Board     Rafiu Ibrahim     Alaro     Ayinke Saka     Saheed Alakoso     Bayo Ojo     Teachers Specific Allowance     Ilorin West     Kaiama     Jani Ibrahim     Adesoye     Aremu Bose Deborah     Junior Secondary School Certificate Examinations     Saadu Yusuf     Ahman Pategi University     Maigida     Kwarareports.com     Gurei     Adama Isa     Elerinjare     Kwara Politics     Olaiya Victor Mobolaji     Kawu Baraje     Rasheed Jimoh     Abdullahi Biffo     Bayer AG     Folajimi Aleshinloye     Rotimi Oyedepo     Saidu Kawu     Awili Pedro     Funmilayo Zubair     Muftau Akanbi Oke     Ijagbo     Kwara Polytechnic     Tafida     Peculiar Allowance     Ndama Al-hassan     Yahaya Dumoye     Abdulbaqi Jimoh     Jumoke Gafar     Clement Yomi Adeboye     Niyi Ogundiran     Arandun     Awwal Jawondo     Kwara 2015     Gbugbu International Market     Aliyu Adebayo     CKNG     Yusuf Abdulwahab     Shao     Mogaji Aare     Osi     Rasaq Jimoh     Aishatu Ahmed Gobir     CELF     Joana Nnazua Kolo     Durosinlohun Kawu     Florence Saraki     Face Masks     Saliu Ajia     Bayo Onimago     V.O. Abioye     Kwara State Council Of Chiefs     Sango-UITH Road     Issa Manzuma     Solomon Edoja     AGILE Programme     Borgu     Abdulmajeed Wahab     Ekweremadu     KSIRS    

Cloud Tag: What's trending

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

Abdulhakeem Amao     Ophthalmological Society Of Nigeria     Iqra Books     Saeedat Aliyu     AbdulHakeem Ajibola Akanbi     Ebola     Saadatu Modibbo-Kawu     Osi     Durosinlohun Atiku     Ahman Pategi University     Usman Alkali Baba     Mufti Of Ilorin     Timothy Akangbe     Revenue Court     Playing Host     Haruna Tambiri Mohammed     Abdulrazaq Magaji     Budo Egba     Ibrahim Oniye     Bank Of Industry     Alabere     Tunde Yusuf     Al-Hikmah Radio     International Vocational Centre     Toyosi Thomas     Fatimoh Lawal     Park     KWIRS     Sanitation Exercise     Demola Banu     Coalition Of Kwara North Groups     Ramat Oganija     Edret Sabi Abel     Societe Generale Bank Of Nigeria     Rashidi Yekini     Barakat Community Secondary School     Funmilayo Mohammed     Mohammed Katsina Ahmed     Agor     Ajibike Katibi     Razaq Atunwa     Ibrahim Issa Jetti     John Kehinde Salako     Bashirat Bola Bello     Abdulhakeem Adelaja Amao     Ramadan     Dogara     Labour Party     Basit Olatunji     Bola Olukoju     Aro Yahaya     Isiaka Danmeromu     Volunteers Of Ilorin Community And The Emirate     Ibrahim Abduquadri Abikan     Idofin     Lawal Arinola Kudirat     Amuda Bembe     Musa Aibinu     Wale Oladepo     Amusement Park     Ariyo     Onilu     Yusuf Abubakar     Saka Abimbola Isau     Amule     Iponrin     Oyelere Oyinloye     Galadiman Ngeri     Muhammed Aliyu     Aliyu Kora-Sabi     Ishaq Abdulkarim     New Model Police Station     ER-KANG Mining     Sa\'ad Alanamu     Jimba Babatunde     Ahmed Bolaji Nagode     Bello Abubakar