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.

Yunus Lawal     Eghe Igbinehi     Olumide Daniel Ibitoye     Adebayo Salami     Ilota     Tafidan Kaiama     Saduki Lafiagi     Geri-Alimi Split Diamond Interchange     Jaigbade Alao     Aishatu Ahmed Gobir     Oja-Oba     Joseph Bamigboye     Flights To Ilorin     Olukotun Of Ikotun     Galadiman Ngeri     Communication Network Support Services     Christopher Odetunde     Edu     Raliat Elelu-Habeeb     Kwara State Television     Haliru Yahaya     Rex Olawoye     Kale Belgore     Okedare     Sulaiman Gado     MAI Akande     Afeyin-Olukuta     Medinat Folorunsho Salman     SGBN     Aisha Abodunrin Ibrahim     Eleyele     Special Adviser On Digital Innovation     Afolabi-Oshatimehin Adenike Harriet     Mujtabah Bature     Ekiti     Federal College Of Education (Special), Afon     Usman Rifun     Alabi Lawal     Women Radio     Muritala Awodun     International Aviation College     Saka Isau     Kola Ologbondiyan     SAPZ Project     Kwara Consultative Forum     Yusuf Amuda Abubakar     General Hospital, Ilorin     Ibrahim Issa Jetti     Olokoba     Kayode Ibrahim     Ope Saraki     Tsado Manman     Taofik Abdulkareem Babaita     Kwara Primary Health Care Development Agency     Ajayi Okasanmi     ITEM 7     Lanre Issa Onilu     Umar Gunu     Adeleke Ogungbe     Kwara State Governor     Abubakar Baba     Abdullah Janet Amudat     Oba Abdulkadir La\'aro     Kwara Basketball Association     James Kolo     Sobi FM     Bolakale Kawu     KWSIEC     Ayobami Akanbi     Laboratory-to-Product     Amos Sayo     Isapa     Isiaka Abdulrazak     Belgore     Oba Sulaiman Asude     Dar-Al-Handasah Consultants     Kisra    

Cloud Tag: What's trending

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

Abubakar Bature Sulu-Gambari     Ojo Isekuse     Kunbi Titiloye     Sunday Otokiti     Olushola Saraki     John Dara     Titus Ashaolu     Split Diamond Interchange     Ademola Kiyesola     Al-Adaby     Chief Imam Of Ilorin     Moji Makanjuola     Ibrahim Jawondo     Unilorin FM     Rice Farmers Association Of Nigeria     Saidu Kawu     Ishola Moses Abiodun     Sheriff Shagaya     Economic And Financial Crimes Commission     Saheed Akinwumi     Shururat Olatinwo     Benin Republic     Yusuf Ali     Agbarere     Iqra Books     Suleiman Mora Omar     Balikis Jawondo     Bilikisu Gambari     V.O. Abioye     Pategi     Ilorin Emirate     Ibrahim Akaje     John Obuh     AGILE Programme     FERMA     Kayode Bankole     UTME     Ibrahim Agboola Gambari     Kwara 2019     Yomi Ogunsola     Folorunsho Alao     Raji Ayodele Kamaldeen     Saadu Yusuf     Raliat AbdulRazaq     Muhammad Yahya     Abdulrasaq Alaro     Olohungbebe     Oba Mogaji Abdulkadir     Kola Ologbondiyan     Oba David Oyerinola Adedunmoye     Ajeigbe     Shehu Alimi Foundation     Lithium     Sidikat Akaje     Kwha.gov.ng     Muhammed Akanbi     Lanwa     Yusuf Amuda Gobir     Theophilus Oyebiyi     Ilorin East/South Federal Constituency     Neuropsychiatric Hospital     Aisha Buhari     Amina Susa\'a De Ahmed     Mopelola Abdulmaliq-Bashir     Muhammad Ghali Alaaya     Mutawalle     Saba Jibril     Salman Suleiman     Kwara Consultative Forum     Oyedepo     NIPR     Abdulkadir Orire     Leke Ogungbe     Adamu B. Yaqubu     Yekini Adio     Amos Bajeh     Amuda Musbau