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.

Ahmed Saidu Rufai     Oke-Oyi     Shonga     Tosin Saraki     COVID     Yusuf Zulu-Gambari     Standard Organization Of Nigeria     Abiodun Jacob Ajiboye     Sulu Gambari     Olubukola Kifayat Adedeji     Elelu     NSCIA     Ahmed Bolaji Nagode     Tsaragi/Share     Yahaya Seriki     Olokoba Sulyman     Tunji Moronfoye     Florence Saraki     Suraj Tunji Oyewale     Jumoke Monsura Gafar     Nurudeen Muhammed     Hydro-electric Power Producing Areas Development Commission     Omu Aran     Simon Sayomi     Oba David Oyerinola Adedunmoye     Aliyu Kora-Sabi     Nigerian Medical Association     Neo Mundo Ltd     Shehu Jimoh     Umar Ayinla Saro     Yahya Mohammed     Yusuf Mubarak     AbdulRahman Saad     Ayotunde Emmanuel Alao     Garba Ayodele Wahab     Kwara State Health Insurance Agency     United Nigeria Congress Party     Tunji Ajanaku     Oba Of Jebba     Alfa Belgore     Bukola Ajikobi     Ope Saraki     Dairo Kunle Paul     Junior Secondary School Certificate Examinations     Facebook     Kwara State Sports Commission     Egbejila     Ariyo     Saba Mamman Daniel     IPSAS     Kayode Oyin Zubair     Kamaldeen Kehinde     Kwara TV     Ita-Ore     Okoolowo     Joseph Alex Offorjama     Ahmed Shuaib Buranga     Oluwarotimi Boluwatife Adenike     Saka Aleshinloye     HAMFAT Clinic And Maternity     Mohammed Ibrahim     Aliyu Muhammed     Usman Rifun     Police Commissioner     Mansur Alfanla     Abubakar Usman Jos     Manzuma     Freshvine Nigeria Limited     Government House     Ibrahim Agboola Gambari     KWACOBPA     Sun Qing Rong     Lanre Issa-Onilu     Ibrahim Mashood     Ekweremadu     AbdulFatai Adeniyi Dan-Kazeem     Suleiman Idris    

Cloud Tag: What's trending

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

Tsaragi     11th Galadima     Mohammed Saidu     Sabi     Abdulrahman Abdulrasak     Elekoyangan     Kwarareports     Millennium Development Goals     Yunus Oniboki     Erubu Oba Zubair     Doyin Group     Col. Adedipe     Kwara State Health Insurance Agency     Third Estate     YAKOOYO     Ayedun     Sidikat Uthman Ajibola     Deji Ajani     KFA     Saadatu Modibbo-Kawu     Muslim Stakeholders Of Kwara State     Abdulmalik Bashir Mopelola Risikatullahi     Shuaib Jawondo     Musa Alhassan Buge     Adedipe     Kayode Ishola     Just Law Forum     Isaac Aderemi Kolawole     David Oyepinola Adedumoye     Afeyin-Olukuta     Kwara United     Nigeria Customs Service     Seni Saraki     Isiaka Rafiu Mope     Kola Ologbondiyan     Ibraheem Abdullateef     Ilorin Emirate Staff Association     Sadiq Buhari     Yahaya Dumoye     Halimat Yusuf     New Nigeria People’s Party     Ilorin Central Mosque     Pategi     Bisi Oyeleke     Ilorin South     Leke Ogungbe     Kwara Consultative Forum     Olokoba Abdullahi Ayinla     Hassan Oyeleke     Facebook     Saka Balikis Kehinde     Shuaibu Yaman     Bola Iyabo Ibiyeye Adisa     Belgore     Offa Metropolitan Club     Rotimi Samuel Olujide     Saka Abimbola Isau     Bolakale Saka     Rebecca Olanrewaju     Ladi Hassan     Shonga Farm Project     NIRSAL     Aso-ofi     Monthly Sanitation Exercise     Ilorin West/Asa Federal Constituency     International Vocational Centre     Tsado Manman     Ibrahim Mashood     General Hospital, Ilorin     Oladipo Akanmu Tolani     Marufat Oladosu     Curfew     Saliu Shola Taofeek     Iyiola Oyedepo     Nigerian Army     Onilu     Idris Garba