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.

Muideen Olaniyi Alalade     Ilorin East     Nigerian Correctional Service     HICA     Abraysports FC     Sodiya     Babaita     Isiaka AbdulRazaq     Balogun-Ojomu     Babs Iwarere     Dorcas Afeniforo     Segun Olawoyin     Idofin     Eleja Taiwo Banu     Photo News     Kanu Agabi     Bolakale Kawu     Adewuyi Funmilayo     Umar Ayinla Saro     Owu Fall     TVC Female National Debate     MAI Akande     Ilorin.Info     Afonja     Admiralty Villa     Suleiman Abubakar     Shoprite     Islamic Development Bank     Cassava Growers\' Association     Code Of Conduct Tribunal     Dumagi     Kola Adesina     IEDPU     Gbemisola Oguntimehin     Saliu Alamoyo     Dagbalodo     Shero     Ajibike Katibi     Trade Lenda SME Fair     Mary Arinde     Matthew Babaoye     Sunday Fagbemi     Olayinka Are     Ibrahim Mohammed     Ibrahim Abdulqadir Abikan     James Kolo     Nigeria Foundation For Artificial Intelligence     Saheed Popoola     Yoruba     NIRSAL     Playing Host     Elesie Of Esie     Olofa Of Offa     Mohammed Halidu     Alimi     African Democratic Congress     Ayo Opadokun     Saka Onimago     Abdulrauf Yusuf     Bola Olukoju     Yusuf Lanre Badmas     Tanke Flyover Bridge     Jimoh Saadudeen Muhammed     Kehinde Baale     Fatai Olodo     Prince Mahe Abdulkadir     Nagode     Busari Alabi Alausa     Mahee Abdulkadir     Dauda Adesola     Adebayo Mohammed Kamaldeen     Yoonus Lawal     Salihu Jibril Garbi     Akorede     ASUU     Oloruntoyosi Thomas     Col. Taiwo    

Cloud Tag: What's trending

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

Abdulraheem Yusuf     Lafiagi     KWATMA     Idofin     GGDSS Pakata     Ajase-Ipo     Muslim Cementary     Dar-Al-Handasah Consultants Ltd     Wole Oke     Femi Agbaje     College Of Health     Lateef Ademola Olatunji     Yusuf A. Usman     Maigida Soludero Transit     Government House     Ezekiel Yissa Benjamin     Dairo Kunle Paul     Oyeyemi Olasumbo Florence     Timothy Olatunde Fadipe     Isau     CACOVID     Yeketi     VADA     Sam Onile     Baruba     United Nigeria Congress Party     Kwara South     Baaziki Sulaiman     Sulyman Buhari     Alabi Olayemi Abdulrazak     Kanu Agabi     Ayinde Oyepitan     Abdulkadir Orire     Iqra Books     Adesoye     Waziri Yakubu Gobir     Maigida     Simeon Sule Ajibola     Toyin Falola     Clara Nwachukwu     Onilorin Of Ilorin     Oloje     Aminat Ahmed     Florence Saraki     Otunba Taiwo Joseph     Kamaldeen Gambari     Esinrogunjo     Dasuki Belgore     Tunde Mukaila Mustapha     Unilorin     George Funsho Adebayo     Olokoba Abdullahi Ayinla     Crystal Corner Shops     Shehu Alimi Foundation     Aliyu Sabi     Adebayo Salami     Tunji Moronfoye     Offa Metropolitan Club     Third Estate     Raymond Olaitan     Sunset Workers     Modibo Kawu     Abubakar Lah     Bola Shagaya     Abdulmajeed Abdullahi     Yusuf Amuda Gobir     Monthly Sanitation Exercise     Kwara State Fire Service     AGF Abdulrazaq     Azeez Bello     Ahmed Bolaji Nagode     Abdulwahab Ololele     NAWOJ     Kwara United     Vasolar     Overland     Kale Belgore