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.

Ayo Salami     Joseph Yemi Ajayi     Nigeria Computer Society     Binta Abubakar-Mora     Folorunsho Alao     07039448763     Lanwa     Kwara Central     Abdulwahab Olarewaju Issa     Elesie Of Esie     Hussein Olokooba     Yemi Sanni     NaAllah     Kishira     Eleja Taiwo Banu     KWSIEC     School Of Nursing     Modibbo Kawu     Dogara     Ajidagba     University Road     Ilorin Water Reticulation     Okoolowo     Valsolar Consortium     Kwara Teaching Service Commission     Olusola Saraki     Baaziki Sulaiman     Ita-Nmo Market     Muhammadu Gobir     Muhammed Mahe Abdulkadir     Yakubu Mohammed Abdullahi     Atunwa     Air Peace     Ilorin East/South Federal Constituency     Asa LGEA School     Kawu Baraje     Saba Jibril     Oloyede     Abatemi Usman     KSIRS     Kwabes     Kwara Liberation Group     Mohammed Abdulahi     Raliat AbdulRazaq     Bolaji Abdullahi     Baba Adini Of Kwara State     Oke-Ogun     Elelu     Yunus Lawal     Iliasu     Dagbalodo     Mohammed Yisa     ER-KANG     IHS Towers     Muhammadu Buhari     Durosinlohun Atiku     College Of Education     Oke-Kura     CACOVID     Abdulrahman Onikijipa     Kehinde Baale     Abdul Jimoh Mohammed     Bola Magaji     Olam Food Ingredients     Lateef Ademola Olatunji     Ayotunde Emmanuel Alao     Sola Saraki University     Atiku Abubakar     Alimi Abdulrazaq     Oniyangi     Ballah     Igbomina     Umar Ayinla Saro     Mohammed Kamaludeen     Kwara 2023     Hamza Usman     Obayomi Azeez    

Cloud Tag: What's trending

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

AbdulRazaq AbduMajeed Alaro     John Mayokun Dada     Oke-opin     Oyawoye     Mahee Abdulkadir     Ayinde Oyepitan     Jelili Yusuf     Abdulhakeem Adelaja Amao     Ibraheem Adeola Katibi     Abubakar Atiku     Abdulganiyu AbdulAzeez     Mohammed Khadijat Kubura     Donatus Ejidike     Jide Oyinloye     Iyabo Dupe Adekeye     Aliyu Muyideen     Doyin Awoyale     Fawenu     Ganmo Power Sub-Station     KWASEIC     Marufat Oladosu     General Hospital, Offa     Oyedepo     Voices Of Tomorrow     Yahaya Oloriegbe     Bolakale Saka     Ramadhan     Wahab Olasupo Egbewole     Musbau A. Akanji     Oba Abu     Suwa-Arabs     Kwara Coalition Of Business And Professional Associations     Kulende     Elesie Of Esie     Academic Staff Union Of Universities     Crystal Corner Shops     Ayobola Ipinlaiye     Sam Okaula     Adamu Atta     Salman Alada     Oko-Olowo     Ijagbo Health Centre     Folorunsho Erubu     Ibrahim Abiodun     Oni Adebayo     Kayode Ibrahim     IEDPU     Kwara Consultative Forum     GGDSS Pakata     Balogun Gambari     Ajeigbe     Dagbalodo     Oro Grammar School     Saliu Oluwole     Otunba Taiwo Joseph     Government High School Adeta     Salihu S. Yaru     Shero     Fatimoh Lawal     M.Y. Abdulrahaman     Bamikole Omishore     Yekini Adio     Tunji Oyawoye     Kunle Suleiman     Abdulkadir Orire     Ado Bayero     Ojuekun Sarumi     Alumni Association Of The Federal Polytechnic Offa     Igbomina     Majlis For Sadaqah, Zakat And Waqf     Stephen Fasakin     Rapheal Ashaolu     JMK Construction Company Limited     Kwara State Government     Falokun-Oja     Ndama Al-hassan     Abubakar Baba