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.

Principal Private Secretary     Ilorin Curfew     Ibrahim Oloriegbe     Tunji Arosanyin     KWASIEC     Oniye     Old Oyo     Isiaq Khadeejah     Olabode Towoju     Kwara State Football Association     Bukola Ajikobi     Mary Arinde     Raliat Elelu-Habeeb     Maigida Soludero Transit     Abdulraheem Olesin     Kolade Solagberu     Amosa     Plat Technologies     Issa Manzuma     Sardauna Of Ilorin     Bello Bature     Bashir Omolaja Bolarinwa     Aminu Adisa Logun     Sheriff Olanrewaju     Muhammadu Gobir     Segun Olawoyin     Temitope Ogunbanke     CCB     Michael Ologundea     Logun     Kazeem Oladepo     Hassan Abdulazeez Elewu     AbdulRazaq Abubakar Jiddah     Bisi Kristien     Metro Park     Ajayi Okasanmi     Abdulquawiy Olododo     Harmony Holdings     Durosinlohun Kawu     Orisun Igbomina     Abdulahi Abubakar Bata     Kwara State Coalition Of Business And Professional Associations     Lukman Adeloyin     Muyiwa Oladipo Kanu     Ajibola Ademola Julius     Joseph Alex Offorjama     Ganmo     Sadiq Umar     Dumagi     Arandun     Abdulrazaq Adebayo     Ilorin     Nigerian Supreme Council For Islamic Affairs     NNPP     NFAI     Afonja Descendants Union     Dar-Al-Handasah Consultants     Sheikh Ridhwanullah El-ilory     Mohammed Alabi Lawal     Abubakar Baba     Sabi     Magaji Are     Ministry Of Women Affairs And Social Development     Standard Organization Of Nigeria     Ahmad Olanrewaju Belgore     Arinola Fatimoh Lawal     Haleeman Salman     Bareke     Bahago     Tunde Yusuf     Ijagbo     Yahaya Abdulkareem Babaita     Adekunle David Dunmade     IQRA College     Coalition Of Kwara North Groups     Yusuf Abubakar     Yakub Ali-Agan    

Cloud Tag: What's trending

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

Tunde Yusuf     GGDSS Pakata     Abdullahi Samari     Abdulhakeem Adelaja Amao     Abdulwaheed Musa     Mary Arinde     Tsado Manman     Siddiq Adebayo Idowu Salawu     Sarakite     Adedayo Yusuf Abdulkareem     Hajj     Curfew     Adama Isa     Roheemat Hammed     Mahmud Ajeigbe     Isiaka Saka Opobiyi     Lateef Alagbonsi     Amosa     Gbemisola Oguntimehin     Femi Gbajabiamila     Muhammad-Mustapha Suleiman     United Nigeria Congress Party     KWSUED     Monthly Sanitation Exercise     Tayo Awodiji     Okala Baba     Baba Issa Awoye     Kwara State Governor     Abubakar Ndakene     Kazeem Oladepo     Lafiagi     Mohammed Yahaya Barki     Islamic Development Bank     Mashood Dauda     Yahaya Seriki Gambari     Tricycle Owners Association Of Nigeria     Mustapha Akanbi     Afusat Nike Ibrahim     Muhammed Akanbi     Ridhwanullah Al-Ilory     Col. Adedipe     Chief Imam Of Ilorin     Elesie Of Esie     National Union Of Road Transport Workers     Aliyu Adebayo     ARMTI     Oyin-Zubair     Danladi     Yakubu Mohammed Abdullahi     Asa     Saliu Ajia     Convocation Ceremonies     Muyideen Ajani Bello     Ilorin Muslim Community     Osuwa     Elerin Of Adanla Irese     Lanre Aremu     Rasheed Jimoh     Lawal Jimoh     Presidential Election     Abraham Ojo     General Tunde Idiagbon International Airport     Guber Aspirant     Wasiu Odewale     Eleja Taiwo Banu     KFA     Abdulkadri Ahmad Alaiye     Charles Ibitoye     KWASIEC     David Oyepinola Adedumoye     Salary     Abdulsalam A. Yusuf     Sheikh Alimi     Ella Supreme Tissue Paper     Ilorin Talaka Parapo (ITP)     Muhammad Yahya     Ayeyemi Sulaiman