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.

Bilikisu Oniyangi     Shuaib Olarongbe     Abdulwaheed Musa     Federal Polytechnic Offa     Oyedepo     Aishat Mohammed Lawal     Chemiroy Nigeria Limited     Ibrahim Mashood     Oyedun Juliana Funke     Biliaminu Aliu     Otoge     Ilorin Talaka Parapo     Femi Ogunsola     Millennium Development Goals     Ilorin East/South Federal Constituency     Revenue Court     African Democratic Congress     Nnazua     Zulkifli Ibraheem     Abdulhakeem Amao     Bello Taoheed Abubakar     Academic Staff Union Of Universities     Unilorin     Kayode Bankole     Taofik Abiodun Ahmed     Simeon Ajibola     20 Billion Bond     Hassan Taiye Salam     Innocent Okoye     Valsolar     Alore     Mohammed Danjuma     April 11     Abdulganiyu Oladosu     Kayode Laro     Elerin Of Erin-Ile     Oba-Solagberu     Ilorin Emirate Staff Association     Sheikh Ridhwanullah El-ilory     Ejidongari     Sherif Sagaya     Charcoal     Abdulrazaq Solihudeen     Ghali Muhammed     Hamidu Olowo     Musa Ayinla Yeketi     Tafida Of Ilorin     Yusuf Lanre Badmus     Olusola Saraki     Siddiq Adebayo Idowu Salawu     Kanu Agabi     Omu-aran     Adeola Abraham     Kupchi Hosea Maxwell     Moses Rahman Popoola     Olokoba     Tunde Akanbi     Isaac Gbenle     Ilorin.Info     MATTA Girls Foundation     IEDPU     Lawal Jimoh     Iyabo Adisa Ibiyeye     Islamic Development Bank     Bola Ahmed Tinubu     Roheemat Hammed     Lafia Aliyu Korasabi     Muazam Nayaya     Ajia-Bako     Salihu Jibril Garbi     Adeleke Ogungbe     Ajasse-Ipo     Seun Bolaji     Abdulganiy Abimbola Abdussalam     Haruna Tambiri Mohammed     Oloyede     QuickWin    

Cloud Tag: What's trending

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

Rueben Parejo     Illyasu Abdullahi     Kale Kawu     Folajimi Aleshinloye     Abdulrazaq Adebayo     Kwara Teaching Service Commission     Sango-UITH Road     Shoprite     Majlis For Sadaqah, Zakat And Waqf     Muftau Akanbi Oke     Shehu Alimi Foundation     Akeem Olatunji     Olatunde Olukoya     Sabitiyu Grillo     Shao     Olumide Daniel Ibitoye     Opolo Global Innovation Limited     Aisha Ahman-Pategi     Tunji Ajanaku     Idris Amosa Saidu     Yemi Sanni     Lafia Aliyu Korasabi     Alfa Belgore     ER-KANG Mining Nigeria Company Limited     Iyiola Oyedepo     Abdulsalam A. Yusuf     Abegunde Goke     Yaman     Yusuf Olaolu Ali     Olateju Lukman     Baba Idris     Mutawali Of Ilorin     Onilorin Of Ilorin     Jimoh Saadudeen Muhammed     Saka Isau     Akanbi-Oke     Just Event Online     Yusuf Lanre Badmas     Folashade Omoniyi     Abdullahi Adisa Akodudu     Toyin Olayinka Tejidini     Odogun Olushola Gabriel     Aishat Sulu-Gambari     Yahaya Jibril Usman     Ibrahim Orire     Mohammed Tunde-Jimoh     MMWG     Tosho Yaqub     Bursary     Baba Adini Of Kwara State     Raji Ayodele Kamaldeen     Salmon Babatunde Salmon     Chief Imam Of Omu-Aran     Nigeria Governors\' Forum     Atiku     Asa LGEA School     Tayo Alao     Joseph Yemi Ajayi     Segun Adeniyi     SARS     NIRSAL     Ilorin Like-Minds     Saduki Lafiagi     Wale Oladepo     Bolaji Aladie     Simeon Ajibola     Hausa     Isaac Aderemi Kolawole     Oniwa     Sun Qing Rong     Idi-Ape     Saka Adeyemo     Adewuyi Funmilayo     Victor Gbenga Yusuf     Jaiz Bank     Abatemi-Usman     Emmanuel Bello