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.

Abdulganiyu Oladosu     TESCOM     Bola Magaji     Reuben Paraje     Saliu Oluwole     Alfa Modibbo Belgore     Kale Belgore     CCB     Osuwa     Yusuf Lanre Badmus     QuickWin     Odolaye Aremu     Balogun Ajikobi     Ahmed Idris Mohammed     Ibrahim Bio     M.Y. Abdulrahaman     Abdulrazaq Akorede     Saliu Tunde Bello     Abiodun Jacob Ajiboye     Yusuf Arowosaye     Sabi     John Mayokun Dada     Bukola Saraki     Shehu Adaramaja     Goodluck Jonathan     Grillo     Toyin Falola     Air Peace     Tinubu     Olokoba     Ezekiel Yissa Benjamin     Sarah Jubril     Adamu Ibrahim Sabi     Sadiq Buhari     Isiaka Alikinla     Yusuf A. Usman     Oluronke Adeyemi     Markaz Arabic And Islamic Training Institute, Agege     Al-Ilory     Waheed Ibrahim     Muyiwa Oladipo Kanu     Logun     Transition Implementation Committee     Medinat Folorunsho Salman     Olabimpe Olani     Ahmed Shuaib Buranga     AbdulGafar Tosho     ITP     Wahab Agbaje     Michael Nzwekwe     Umar Adelodun     Bilikisu Gambari     Moronfoye     Olufolake Abdulrazaq     Mustapha Olanipekun     Kwara State Geographic Information Service     Dairo Kunle Paul     Irepodun     School Of Nursing     Iliasu     Gbugbu     CKNG     Royal FM     Raymond Olaitan     Ike Ekweremadu     Ubandoma     Abdulmumini Jawondo     Issa Baba     Teachers Specific Allowance     UTME     Veterinary Teaching Hospital     Kwara Hotel     Taofik Abiodun Ahmed     Folajimi Aleshinloye     Baba Idris     Raimi Iyanda     Ilorin West/Asa Federal Constituency    

Cloud Tag: What's trending

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

GGDSS Pakata     Oniwasi Agbaye     Jamiu Oyawoye     Eruku     Jalala     Nurudeen Mohammed     Hameed Oladipupo Ali     Radio SBS     Boko Haram     Eleyele     Abdul-Rahoof Bello     Bibire Ajape     Kwarareports     Muslim Media Watch Group Of Nigeria     Haliru Yahaya     ARMTI     Abdulkadir Orire     Fatimat Saliu     Awodun     Kwara Teaching Service Commission     Kulende-UITH     Lanwa     Isiaka Abdulrazak     Omoniyi M. Ayinla     Post Utme     Sulaiman Gado     Adebayo Salami     Abdulganiyu Salahudeen     Mohammed Khadijat Kubura     Olukotun Of Ikotun     Adamu Jemilat-Baki     AbdulFatai Adeniyi Dan-Kazeem     Mumini Ishola Hanafi     Gbugbu     Waheed Ibrahim     Atunwa     Titus Ashaolu     Egbejila     Kaosarah Adeyi     Share-Tsaragi     Chief Imam Of Ilorin     Amoyo     Olokoba Sulyman     Sebastine Obasi     Jimba Babatunde     Sidikat Alaya     Taofeek Ibraheem     Bashir Omolaja Bolarinwa     Sheu Ndanusa Usman     Abraham Ojo     Government Girls’ Day Secondary School Pakata     Bilikis Oladimeji     Ibrahim Taiwo     Ilorin West/Asa Federal Constituency     Odolaye Aremu     Okeose Christian Cementary     Kwara State Branch Of The National Library     CCB     Lola Ashiru     Umaru Saro     Wahab Isa     SARS     Veterinary Teaching Hospital     Oke Sunna     Agbarere     Majlis For Sadakah, Zakat And Waqf     Vasolar     Jare Olatundun     Basic Education Certificate Examination     Code Of Conduct Bureau     Amos Sayo     Oyedun Juliana Funke     Ayotunde Emmanuel Alao     Adesoye     Stephen Fasakin     Lafia Aliyu Korasabi     Yakub Lai Gobir