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.

Vasolar     Shonga     Muhammed Taofeeq Abdulrazaq     Ibrahim Abduquadri Abikan     Vasolar-Kwara Company Ltd     Alapado     Abdul Jimoh Mohammed     Universal Basic Education Commission     Elewu     Jimba Babatunde     Abatemi-Usman     Kayode Bankole     Busari Alabi Alausa     African Democratic Congress     Oyawoye     Council Of The Wise     Raji AbdulRasaq     Yusuf Abdulwahab     Aisha Ahman Pategi     Ibrahim Gambari     Babata     Shururat Olatinwo     Roseline Oni Aremu     Matthew Okedare     Jebba     Medinat Folorunsho Salman     Funmi Salau     Segun Ogunsola     Abdullah Janet Amudat     Unicontinental Construction Company     Shettima     Col. Adedipe     Kwara State Infrastructure Development Fund     Sa\'adu Gambari     Amuda Bembe     Kola Olota     CCEPE     Saidu Yaro Musa     Osi     Na\'Allah     Offa Metropolitan Club     Oja-Oba     Sadiq Buhari     Markaz Arabic And Islamic Training Institute, Agege     Kwara 2023     Dumagi     Sabo-Oke     Abdulganiyu Salahudeen     Moro     Teachers Specific Allowance     Chikanda     Zubair Folorunsho Erubu     Abdulkadir Jimoh     Gabriel Fashanu     Turaki     IYA YUSUF     Dairo Kunle Paul     Adesoye College     Ayekale     Aremu Odolaye     Chief Imam Of Lafiagi     Kawu     Barakat Community Secondary School     KWIRS     Tosho Yaqub     Saliu Oluwole     Niyi Osundare     Kannike     Local Government     Azeez Salawu     Siddiq Adebayo Idowu Salawu     Plat Technologies     Abubakar Olusola Saraki     Ilesha Gwanara Road     Ilesha-Baruba-Gwanara     Idris Amosa Saidu     N-Power    

Cloud Tag: What's trending

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

V.O. Abioye     Ilorin General Hospital     Oko-Olowo     Aliyu Muhammed     Stephen Fasakin     Maryam Nurudeen     UTME     Isin     Kale Kawu     Elesie Of Esie     Ramadhan     Ahmad Uthman     Dogara     Abubakar B.M     Yusuf Lanre Badmas     Oba David Oyerinola Adedunmoye     Magaji Nda     Yahaya Dumoye     Elekoyangan     CCEPE     Shehu Salau     Alapado     Ilorin Metro Park     ENetSuD     Centre For Digital Economy     Moji Makanjuola     Amuda Bembe     Eleja Taiwo Banu     Javed Khan     Ado Bayero     Bayer Nigeria Limited     Baba Idris     Salami Adekunle     Jelili Yusuf     Suleiman Abubakar     Prince Bola Ajibola     Bello John Olanrewaju     Kazeem Oladepo     Kwara State Internal Revenue Service     Nigeria Foundation For Artificial Intelligence     Saadu Alanamu     General Tunde Idiagbon International Airport     Lawal Jimoh     Kazeem Adekanye     Bello Oyebanji     Issa Memunat Moyosore     Muhammed Mahe Abdulkadir     Hamidu Olowo     Mohammed Khadijat Kubura     ASKOMP     Facebook     Shettima     Raymond Olaitan     Garba Dogo     Plat Technologies Limited     Abdulrahman Abdulrazak     Abdullah Janet Amudat     Isiaka Abdulrazak     Mumeen Lah     Abubakar Olusola Saraki     Micheal Imoudu     Kupchi Hosea Maxwell     Kwara State Government     Bilikis Oladimeji     Elese Of Igbaja     Nigeria Governors\' Forum     Oniyangi Kunle Sulaiman     Kwara North     Kamaldeen Ajibade     Ibraheem Abdullateef     Abdulwasiu Bolaji Adeyi     Jamila Bio Ibrahim     Awoye     CBT     Ibrahim Oniye     Fareedah Dankaka     Saka Abimbola Isau