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.

Abikan     Gwanara     John Olobayo     Abiodun Musa Aibinu     Students Union Government     Salary     Timothy Akangbe     Kwara-SAPZ Project     Mohammed Abdulahi     Taofik Abiodun Ahmed     Abdulsalam Firdaous Amosa     Otoge     Ilorin West     Kayode Bankole     Saka Aleshinloye     Kazeem Adekanye     Olam Food Ingredients     Mohammed Abduraheem     Oniwasi Agbaye     Convocation Ceremonies     Salihu Ajibola Ajia     Ghali Muhammed     Labaeka     Tanke Flyover Bridge     Oyedepo     Jumoke F. Ajao     Kwara State Coalition Of Business And Professional Associations     Kwara North     Gbenga Awoyale     Shehu Salau     Aro Yahaya     Amina El-Imam     Taofeeq Olateju     Umar Ayinla Saro     Damilola Yusuf Adelodun     Eleja     Ahmed Bayero     AbdulHamid Adi     Alikinla     Gbadeyan Gbadura Yomi     Agbarigidoma     Lukman Adeloyin     Post-utme     Alfa Modibo Belgore     Oke-Kura     AIT Ilorin     Volunteers Of Ilorin Community And The Emirate     Simon Sayomi     Abdulmumini Sanni Jawondo     Public Holiday     Kale Kawu     Lukman Oyebanji Fagbemi     SWAN     MINILS     Ubandoma     Wahab Egbewole     Saliu Alamoyo     Dan Iya     Michael Nzekwe     Kwara Poly     Metro Park     All Confederation Of Principals Of Secondary Schools     Olawuyi     Junior Secondary School Certificate Examinations     Aliyu Sabi     Alabe     Odo-Owa     Sulaiman Gado     Niguel Gallando Marcias     SAPZ Project     Patigi Regatta     Atunwa     Adeleke Ogungbe     College Of Health     Kwasu     National Association Of Nigerian Students     Yusuf Babatunde Abdulwahab    

Cloud Tag: What's trending

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

Abdulazeez Uthman     Hassan A. Saliu     Olatunji Bamgbola     COVID-19 Palliatives     Overland     Ibrahim Abdullahi     KWASSIP     Erubu Oba Zubair     Abdullahi Saadudeen Alikinla     Akeem Olatunji     Savannah Centre For Diplomacy, Democracy And Development     Muhammed Aliyu     Odo-Owa     Sheu Ndanusa Usman     Idi-Ape     Tunji Folami     Oladimeji Thompson     Joseph Daudu     Special Agro-industrial Processing Zone     Bello Oyebanji     Junior Secondary School Certificate Examinations     Lawan     Abdulkadri Ahmad Alaiye     Ronke Adeyemi     Kwasu     Wahab Abayawo     Kale Bayero     Shade Omoniyi     School Of Nursing     Post Utme     Wahab Isa     Irepodun     Ilesha-Baruba     Gambari     Saliu Mustapha     Abdulrazaq Aiyelabegan     Kwara State Television (KWTV)     Esinrogunjo     Bola Ahmed Tinubu     Omar Bolaji Gambari     Lanre Badmas     HICA     Saliu Shola Taofeek     Afonja Descendants Union     Tunji Moronfoye     Kola Bukoye     Baaziki Sulaiman     Yahaya Jibril Usman     Kola Adesina     Timothy Akangbe     Ayinde Oki     Abubakar Kawu Baraje     IFK     Kwabes     Saad Belgore     International Aviation College     Afolasade Opeyemi Kemi     Folaranmi Aro     ENetSuD     Tunji Olawuyi     Babaita     CCEPE     Abdulrazak Shehu Akorede     Ibrahim Sulu Gambari     Saheed Alakoso     SUBEB     Toyin Abdullahi     Sebastine Obasi     Vasolar Consortium     Kwara State Printing And Publishing Corporation     Kwara Liberation Group     Amule     Sheikh Ridhwanullah El-ilory     Fola Consultant     Bashiru Makama     Agbarere     GANZY