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.

Yusuf Ali     Ilota     Abdul Jimoh Mohammed     Halimat Yusuf     Olanrewju Okanlawon Musa     Yakub Ali-Agan     AbdulGafar Tosho     Alapansapa     Kola Adesina     Saliu Ajibola Ajia     Ilorin Talaka Parapo     Reuben Paraje     Hamidu Olowo     PharmAccess Foundation     Shururat Olatinwo     Medview Airlines     Garuba Alikinla Shittu     Kwara State Internal Revenue Service     Moses Adekanye     Amasa     Egbewole     Ilorin.Info     Abdulraheem Yusuf     Bola Olukoju     Nnazua     SDP     Hassan Abdulazeez Elewu     Ilorin Anchor Men And Women     Lafia Aliyu Korasabi     Alanamu     Idris Garuba     Abdullah Janet Amudat     Offa Descendants Union     Wahab Abayawo     Donatus Ejidike     Ilorin Durbar     Kwara Hotel     Malete     Imodoye Writer’s Enclave     Mujtabah Bature     Christopher Odetunde     Dumagi     Ibrahim Abdulqadir Abikan     Ariyo     Abdulraufu Mustapha     Ademola Kiyesola     Moses Rahman Popoola     KWTV     Olajumoke Monsura Gafar     Abdulrahman Abdulrazaq     AbdulRahman Saad     Shuaibu Yaman     KWASIEC     Valsolar Consortium     Suleiman Yahya Alapansapa     Academic Staff Union Of Universities     Federal Polytechnic Offa     QuickWin     Sulu Babaita Isiaka     Adedeji Onimago     Yemi Osinbajo     Balikis Jawondo     Agor Market     Mumeen Lah     Kwara Restoration Project     Lanwa     Tunji Arosanyin     Amoyo     Forgo Battery     Orire     EndSARS     COVID-19 Palliatives     Erin-ile     Isiaka Gold     Sulyman Buhari     Adesoye College     Mamatu Abdullahi    

Cloud Tag: What's trending

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

Special Adviser On Digital Innovation     Saka Asiat Ayinke     Ayekale     Adedeji Onimago     Aremu Bose Deborah     Kamoru Kadiri     Offa Metropolitan Club     Ebola     Edu     KFA     Ibrahim Kayode Adeyemi     Zulkifli Ibraheem     Mary Arinde     Ahmad Olanrewaju Belgore     Bolakale Saka     Joseph Yemi Ajayi     Minimum Wage     Al-Adaby     Elerinjare-Ibobo     Balogun Fulani     Suleiman Idris     Olatinwo     T And K FOODS     Garba Ayodele Wahab     Code Of Conduct     Mutawali Of Ilorin     KWASAA     Alimi Abdulrazaq     Peculiar Allowance     Senior Staff Union Of Colleges Of Education     Oke-Ode     20 Billion Bond     Afolabi-Oshatimehin Adenike Harriet     Gwanara     Abdulkarim Adisa     Bashir Badawi     Daud Adeshola     Segun Adeniyi     Abdulwahab Olarewaju Issa     Kwara-SAPZ Project     Saka Adeyemo     Hassanat Bello     Taofik Abdulkareem Babaita     M.Y. Abdulrahaman     Coronavirus     Abdulazeez Uthman     Age AbdulKareem     Eleja     Abikan     Abdulmalik Bashir Mopelola Risikatullahi     Anilelerin     Sheikh Ridhwanullah     Binta Abubakar-Mora     Moses Salami     Shururat Olatinwo     Abegunde Goke     Agboola Abdulraheem     Hijaab     Durosinlohun Atiku     Mohammed Halidu     Rasaq Jimoh     Adijat Adebiyi     Fatimat Saliu     Yusuf Aiyedun     Mazars Consulting     Illyasu Abdullahi     Abdulsalam Firdaous Amosa     Olota Of Odo-Owa     Ganmo     Funke Adedoyin     Hausa     Aliyu U. Tilde     Muyiwa Oladipo Kanu     Awodun     ANCOPPS     Belgore     Wahab Agbaje