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.

Borgu     Transition Implementation Committee     Saadu Gbogbo Iwe     Bola Sagaya     Muftau Akanbi Oke     Just Event Online     Farouk Salim     Facebook     Yunus Lawal     Kale Belgore     Yahaya Abdulkareem Babaita     Bello Abubakar     Idi-Ape     HYPPADEC     Dairo Kunle Paul     Abdulazeez Uthman     Ebola     General Hospital, Ilorin     BECE     Rueben Parejo     Mufti Of Ilorin     Oba Sulaiman Asude     Abdulazeez Arowona     Bola Tinubu     Christopher Tunji Ayeni     20 Billion Bond     Abdulmumin Yinka Ajia     Shero     Olushola Saraki     Salau Kabiru Abdullahi     Tunji Moronfoye     Aliyu Muhammed     Ibrahim Abdulqadir Abikan     Ilesha-Gwanara     Buhari     KW-GIS     Dan Iya Of Ilorin     Kwara Restoration Project     Eghe Igbinehin     Abiodun Musa Aibinu     Emir Of Kano     Olubukola Kifayat Adedeji     Amoyo     Toyin Olayinka Tejidini     Abdulrasaq Alaro     Segun Abifarin     Agor     Abdulganiyu Oladosu     Zaratu Umar     Baba Issa Awoye     UNIFEMGA     Moses Rahman Popoola     Sanitation Exercise     Ishola Balogun Fulani     EndSARS     Oke-Oyi     Musbau A. Akanji     Mogaji Aare     Oja-Oba     Lanre Aremu     Sheikh Ariyibi     CUTI     Musa Aibinu     ITP     Muhammad Mustapha Suleiman     Iqra Books     Wahab Issa     Oba Abdulraheem     Yemi Sanni     Bolakale Ayo     Woro     Law School Scholarship     Simeon Sule Ajibola     AbdulRazaq AbduMajeed Alaro     Abdul-Rahoof Bello     Na\'Allah     Yaman    

Cloud Tag: What's trending

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

Fatimah Abdulkadir     Isiaka AbdulRazaq     Okin Biscuits     Split Diamond Interchange     Kale Ayo     Aliyu Alhassan     Oyin-Zubair     Temi Kolawole     Kola Olota     Olatunji Moronfoye     Ekiti     Medinat Folorunsho Salman     Bola Tinubu     Olaitan Buraimoh     Adebara     NAWOJ     Facemasks     Hassan Oyeleke     Yakubu Mohammed Abdullahi     Isaac Aderemi Kolawole     Mahmud Ajeigbe     Yusuf Aiyedun     Issa Manzuma     COVID     Halimat Yusuf     Apaokagi     Biliaminu Aliu     Special Agro-industrial Processing Zone     Ibrahim Labaika     Toyin Falola     Olatunde Oyeyiola     COEASU     ASUU     Shade Omoniyi     Al-Hikmah University     Osuwa     Yusuf A. Usman     Bashir Adigun     Olayinka Olaogun     Deji Ajani     Baruba     Aishatu Ahmed Gobir     Ilorin Airport     Yoruba     CT Ayeni     Kpotum Mohammed Baba     Olatunde Michaels     Islamiya Abdulraheem     Dunmade     ITP     Abdulfatai Baakini     AbdulRahman Saad     Popo-Igbonna     ASKOMP     Oke-Ogun     Ibrahim Abdullahi     Iyabo Adewuyi     Abdulsalam Firdaous Amosa     Nurudeen Muhammed     Yusuf Ali     AGF Abdulrazaq     Chemiroy Nigeria Limited     Labaeka     Ghali Muhammed     Voices Of Tomorrow     Baaziki Sulaiman     Balogin Alanamu     KWASSIP     Henry Olaosebikan     Mary Kemi Adeosun     Hamidu Olowo     Tunji Arosanyin     John Mayokun Dada     Barakat Community Secondary School     Owu Fall     Oniye     Arca Santa