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.

AbdulHamid Adi     Shuaib Jawondo     CCT     Abdulmajeed Wahab     Oluwole Dupe     Azeez Salawu     Muazam Nayaya     QuickWin     FOMWAN     Lanre Badmus     Abdulazeez Arowona     Idris Amosa Oladipo Saidu     Suleiman Abubakar     Abraysports FC     Kwara TV     Ballah     Saad Belgore     Aliyu Sabi     Nigerian Supreme Council For Islamic Affairs     Emir Of Kano     Sherif Sagaya     Kayode Ogunlowo     Abdulfatai Ahmed     Amos Justus Sayo     Solomon Edoja     Akande Idowu Ayoola Muhammed     Musa Yeketi     Omu Aran     Mahmud Ajeigbe     Senior Special Assistant On Student Affairs     Gobir Organization Foundation     Yoonus Lawal     Nigeria Computer Society     Lanre Issa Onilu     Ope Saraki     John Olajide Adedipe     Danhawa     Abdulganiyu Oladosu     Garba Ayodele Wahab     Oniyangi     Oloruntoyosi Thomas     Abdulrasheed Akogun     Oniwa     Ramat Oganija     Kisra     Saheed Alakoso     Bolakale Saka     Aliyu Kora Sabi     ITP     Suleiman Idris     Shuaibu Yaman Abdullahi     Kwasu     Abikan     Innocent Okoye     Ganmo Power Sub-Station     Kwara Teaching Service Commission     Musa Abdullahi     Elections     Toyin Falola     Ubandoma Of Ilorin     Alaiye     Abdullahi Atanda     Labour Party     Ahmad Lawan     Mashood Dauda     Elerin Of Adanla Irese     Ayinke Saka     Principal Private Secretary     Iliasu     Jawondo     Musbau A. Akanji     Lotus Bank     Lukman Adeloyin     Olam Food Ingredients     Bello Bature     Kamaldeen Kehinde     AGF Abdulrazaq    

Cloud Tag: What's trending

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

Afusat Nike Ibrahim     Tuesday Assayomo     Zubair Folorunsho Erubu     Old Oyo     Adedeji Onimago     Bamidele Adegoke     Code Of Conduct Tribunal     Yakubu Gobir     Kwara Politics     Lanwa     Quareeb     Omu Aran     Oyelere Oyinloye     MalHub     Suleiman Abubakar     High Court     Amule     Wahab Agbaje     Alfa Modibbo Belgore     Zaratu Umar     KWATMA     Balogun Gambari     Rotimi Atere     Bolaji Abdullahi     Risikat Lawal     Abdulkareem Alabi     Hauwa Nuru     Modibbo Kawu     Kwabes     Sardauna Of Ilorin     Olawuyi     Ajibola Saliu Ajia     Tsado Manman     Yomi Ogunsola     Oladimeji Thompson     Bamidele Aluko     Ajayi Okasanmi     Oyedun Juliana Funke     Solomon Edojah     Gaa Olobi     Olayinka Oladapo Jogunola     Dagbalodo     Centre For Digital Economy     TIC     Idris Amosa Oladipo Saidu     Nurudeen Muhammed     Aisha Ahman-Pategi     Abdulrauf Aliyu     Abdulkadri Ahmad Alaiye     Ilesha-Baruba     Olaoye B. Felix     Harrison Osauwagboe     George Funsho Adebayo     Ilorin Water Reticulation     BIR     Mansur Alfanla     Edret Sabi Abel     Wahab Egbewole     Funmilayo Oniwa     Dan-Kazeem     Jaiz Bank     Monthly Sanitation Exercise     Oloruntoyosi Thomas     Mamman Saba Jibril     Gbemisola Oguntimehin     Magaji Nda     Temitope Ogunbanke     Fatimoh Lawal     School Of Nursing     Ibrahim Abiodun     Yusuf Mubarak     Muslim Stakeholders Of Kwara State     Taofik Abdulkareem Babaita     Segun Abifarin     Firdaos Amasa     Yusuf Abubakar     Aishat Mohammed Lawal