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.

Jimoh Saadudeen Muhammed     Suleiman Ajadi     Transition Implementation Committee     Bukola Ajikobi     Razaq Ayobami Akanbi     Hamidu Olowo     Tayo Awodiji     Innocent Okoye     Aminu Ado Bayero     JSSCE     Abdulraheem Olesin     Ahmed Idris Mohammed     Admiralty Villa     Omar Bolaji Gambari     Muslim Stakeholders Of Kwara State     Kayode Zubair     EndSARS     N-Power     Fola Consultant     Tunji Ajanaku     Kwara 2019     Niyi Ogundiran     C2c@kwarastate.gov.ng     IDPU     Folashade Omoniyi     IQRA College     Samuel Adaramola     Yahya Mohammed     New Nigeria People’s Party     Federal Allocation     Isiaka AbdulRazaq     Oloriegbe     Olusegun Adeniyi     Funmilayo Isiaka Oniwa     Abdulrahman Abdullahi Kayode     Harafat E. Mukadam     Jare Olatundun     Moro     National Pilot     Binta Abubakar-Mora     Saka Abimbola Isau     Tunde Kazeem     Gobir Organization Foundation     Tafida Of Kaiama     Olaoye B. Felix     Fatai Garuba Labaka     Atiku     Elekoyangan     Bello Oyedepo     Ibrahim Taiwo     Olohungbebe     Bola Tinubu     Alapado     Okasanmi Ajayi     Mustapha Olanipekun     Katibi Ibraheem Adeola     Paul Olawoore     Kwara State Television (KWTV)     3MTT     Ileloke     Saliu Tunde Bello     Smart School     Ghali Alaaya     Rasaq Jimoh     Aishat Sulu-Gambari     Ajidagba     Ayodele Kuburat Olaosebikan     Kemi Adeosun     AbdulHakeem Ajibola Akanbi     TIIDELab     Haruna Tambiri Mohammed     Shehu Adaramaja     Kayode Bankole     Afolabi-Oshatimehin Adenike Harriet     Third Estate     CT Ayeni     Muhammad Yahya    

Cloud Tag: What's trending

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

Lithium     Iyabo Adewuyi     Babaloja-General     Issa Manzuma     Olawuyi     Yakubu Gobir     Pakata Patriots     Press Release     Shade Omoniyi     Shaykh Luqman Jimoh     Abdulsalam A. Yusuf     Ibrahim Orire     Senior Special Assistant On Student Affairs     Eleja     Saidu Kawu     Ahmad Olanrewaju Belgore     Bolakale Ayo     Omotosho     Sarah Alade     Ita-Nmo Market     Oluronke Adeyemi     Ahmed Saidu Rufai     Ahmad Ali     Seed Technologies     MalHub     Shehu Jimoh     TVC Female National Debate     Bashir Omolaja Bolarinwa     Olatunji Ibrahim     Abdulmajeed Wahab     National Information Technology Development Agency     Alfa Modibo Belgore     Kulende     Musa Abdullahi     Ayegbeni     Mamman Saba Jibril     Abdulrahman Iliasu     Shola Odetundun     Baba Issa Awoye     Abdulmumini Jawondo     Ilesha-Baruba     Abdulrasheed Lafia     Millennium Development Goals     Christopher Ayeni     Gbajabiamila     Akanbi-Oke     Dan Masanin     Haleeman Salman     Aliyu Olatunji Ajanaku     Egbejila     Muhammed Akanbi     Ike Ekweremadu     Busari Alabi Alausa     Hassan Abdulazeez Elewu     Ibrahim Mashood     Ilesha-Baruba-Gwanara     Valsolar Consultoria     Olam Food Ingredients     Mohammed Saidu     Kola Bukoye     Ilorin South Constituency     Adebara     New Naira Notes     Ndakene     Ejidongari     Oba Abdulrahim     IHS Towers     Haruna Tambiri Mohammed     Simeon Sayomi     Matthew Babaoye     Dan Iya Of Ilorin     Ojo Fadumila     Aso Ofi     Olofa Of Offa     Kwara Consultative Forum     Geri-Alimi Split Diamond Interchange     Bature Bello