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.

Paul Olawoore     Rasheed Jimoh     Ridhwanullah Al-Ilory     Fola Consultant     Ganmo Electricity Sub-Station     Magaji Are     National Democratic Congress     Bamidele Adegoke     Abdulrahman Onikijipa     Oyun     Mohammed Ghali Alaaya     Mashood Dauda     Owu Fall     Abdulwaheed Musa     SGBN     Valsolar Consortium     Saidu Kawu     Aliyu Salihu     Abubakar Lah     Pategi     Oyedepo     Shonga     Sa\'adu Salahu     Inside Kwara     Balogun Ajikobi     Oke-Ogun     Bello Taoheed Abubakar     Saeedat Aliyu     Dan Masanin     Sa\'adatu Modibbo-Kawu     Temi Kolawole     Kwara State Fish Farmers Association     Alaro     Babajide Ajayi     Offorjama     Afonja     Buari Edun     Kumbi Titiloye     Okin Biscuits     Senior Ibrahim Suleiman     Maigida Soludero Transit     Christian Association Of Nigeria     Jeunkunu-Malete-Bani     Folorunsho Erubu     Abiodun Jacob Ajiboye     AbdulHakeem Ajibola Akanbi     NIPOGA     Minister     Oniwa     Nigerian Supreme Council For Islamic Affairs     Bashir Badawi     Mumini Ishola Hanafi     Olam Food Ingredients     Danladi     Turaki Of Ilorin     Mary Arinde     Raliat Islamic Foundation     Ayoade Akinnibosun     Mahmud Ayinla Giwa     Adamu Ibrahim Sabi     Gbajabiamila     Igosun     Shola Odetundun     Amuda Musbau     Issa Oloruntogun     Ladi Hassan     Agbarere     Risikat Lawal     Ola Falade     Olabode George Towoju     Abdulrazaq Adebayo     Ejidongari     Erubu     Lateef Fagbemi     Hydro-electric Power Producing Areas Development Commission     Iyabo Adisa Ibiyeye     Kemi Adeosun    

Cloud Tag: What's trending

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

Bolaji Abdullahi     Ejidongari     Saad Omo\'ya     Olabanji Orilonishe     Oloruntoyosi Thomas     Raheem Adaramaja     LEAH Charity Foundation     Dunmade     Al-Hikmah Radio     Paul Odama     Press Release     Mazars Consulting     Local Government     All Confederation Of Principals Of Secondary Schools     Umar Sanda Yusuf     Unilorin FM     Ayo Adeyemi     Sheikh Alimi     Ibrahim Kayode Adeyemi     Yusuf Aiyedun     Col. Ibrahim Taiwo     Salihu Ajibola Ajia     Eleyele     Unicontinental Construction Company     Riskat Opakunle     Femtech     Ramat Oganija     Park     Playing Host     Ahmad Olayiwola Kamaldeen     Ilorin South Constituency     Sidikat Akaje     Oko-Erin     Mohammed Tunde-Jimoh     Joseph Bamigboye     High Court     Abdulbaqi Jimoh     Tunde Yusuf     Ndakene     Olushola Saraki     Funmilayo Braithwaite     Alumni Association Of The Federal Polytechnic Offa     Suleiman Abubakar     Mahfouz Adedimeji     Rashidi Yekini     Saidu Kawu     Ayinde Oyepitan     Pacify Labs     Abdulwasiu Bolaji Adeyi     State Bureau Of Internal Revenue     AbdulHakeem Ajibola Akanbi     Sadiq Buhari     Abdulmutalib Shittu     Abdullahi Imam Abdullahi     Ishaq Oloyede     Ahmed Bayero     Kehinde Boyede     Olanrewju Okanlawon Musa     COVID-19 Palliatives     Umar Adelodun     Pilgrims Board     New Nigeria People’s Party     Ibrahim Gambari     Junior Secondary School Certificate Examinations     Summit University     Danladi     Suleiman Rotimi Iliasu     Isaac Gbenle     Obayomi Azeez     Tanke     Yusuf Arowosaye     Kwara State Pension Board     Mohammed Yahaya Barki     Smart School     COEASU     Offorjama     Obasanjo