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.

Abdulkadir Bolakale Sakariyah     Yahya Mohammed     Umaru Saro     Abikan     CKNG     Chief Imam Of Lafiagi     Kayode Oyin Zubair     Abdulrazaq Sanni     Lai Mohammed     Innocent Okoye     Forgo Battery Company Limited     Joseph Yemi Ajayi     Shettima     Onilorin     Bashir Omolaja Bolarinwa     Lawal Olohungbebe     Cassava Growers\' Association     Michael Ologundea     Moshood Mustapha     Abubakar Abdulraheem     Ahmed Saidu Rufai     Saliu Mustapha     Firdaos Amasa     Isaac Aderemi Kolawole     Laduba     Government House     Mope Dasuki Belgore     Kwara 2019     Junior Secondary School Certificate Examinations     Abdulrazaq Aiyelabegan     Olosi Of Osi     Taofik Abdulkareem Babaita     Kayode Issa     International Aviation College     Kolawole Akande     Bio Ibrahim     Sarkin Malamai     AbdulGaniyu Kareem     AGF Abdulrazaq     Colleges Of Education Academic Staff Union     Yusuf A. Usman     KWACOBPA     Tanke Flyover Bridge     Tosho Yaqub     Maja     Musbau A. Akanji     Ilorin.Info     Oko-Erin     Elekoyangan     Bibire Ajape     Musa Abdullahi     Ibrahim Bio     Mahfouz Adedimeji     Alapado     NITDA     Onilu     Samuel Adaramola     Kwara Pdp     National Association Of Nigerian Students     Ishaq Oloyede     Olatunde Olukoya     Village Alive Development Association     Abdullahi Adisa Akodudu     Olushola Saraki     Lola Ashiru     Aliyu Olatunji Ajanaku     IQRA College     Sidikat Uthman Ajibola     Ubandoma Of Ilorin     Ibrahim Taiwo     Muhammad Sirajo Aliyu     Tunde Idiagbon Road     Theophilus Oyebiyi     Eleyele     Saka Keji     Police Commissioner     Chief Of Staff    

Cloud Tag: What's trending

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

Abdulrasheed Na\'Allah     Osinbajo     Sarakite     Salihu S. Yaru     Read With Me     Yahaya Seriki     Taofeek Ibraheem     Abdulfatai Baakini     Javed Khan     Abiodun Oyedepo     Pakata Development Association     Oniwa     Ajuloopin     Bashir Adigun     Olabode George Towoju     Rice Farmers Association Of Nigeria     Emmanuel Olatunji Adesoye     Jamiu Oyawoye     Igbaja     Kwara State Fire Service     Oba Abdulraheem     Isiaka Saka Opobiyi     Sa\'adu Salau     Okin Biscuit     Mope Dasuki Belgore     Abubakar Abdulraheem     Olaitan Adefila     Hajj     SAPZ Project     Doyin Awoyale     Muhammad Mustapha Suleiman     Towoju     Abdulkareem Alabi     Jumoke Gafar     Ibrahim Oniye     Isapa     Agor     Sabitiyu Grillo     George Funsho Adebayo     Salaudeen Oyewale     Ishola Abdullahi     Ibrahim Abdulqadir Abikan     Moronfoye     Danladi     Omar Bolaji Gambari     Curfew     Saba Jibril     Wasiu Onidugbe     Abdulmajeed Wahab     Nupe     Abdulwasiu Bolaji Adeyi     Ejidongari     Siddiq Adebayo Idowu Salawu     Shaaba Lafiagi     Afin Descendants Union Of Odo-Owa     Babatunde Ishola Babaita     Aminu Adisa Logun     Saidu Kawu     Oluronke Adeyemi     Amos Justus Sayo     ITEM 7     Mazars Consulting     Quranic Recitation Competition     Adisa Logun     Tsaragi/Share     Aliyu Salihu     Mukhtar Shagaya     Adaramaja     Olatunji Abdulmumeen     Egbejila     Samuel Adaramola     Jaigbade Alao     Saad Belgore     Shuaib Abdulkadir     Yusuf Amuda Abubakar     Muritala Awodun     New Naira Notes