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.

Kwha.gov.ng     Matthew Okedare     Kwara Pdp     Olusegun Adeniyi     Olubukola Kifayat Adedeji     Naira Redesign     Coronavirus     Abdulmumini AbdulRazaq     Odo-Owa     Micheal Imoudu     Muhammad-Mustapha Suleiman     HYPPADEC     Akeem Olatunji     Abubakar Kawu Baraje     Oke-Ero     Iyabo Dupe Adekeye     KWSIEC     NIRSAL     Tafidan Kaiama     Ibikunle Ogunleye     Senior Staff Union Of Colleges Of Education     Ita-Ore     Shuaibu Yaman Abdullahi     Lithium     National Democratic Congress     Ophthalmological Society Of Nigeria     Road Transport Employers Association Of Nigeria     Abdulrahman Abdulrazaq     Gbemisola Oguntimehin     Sheu Ndanusa Usman     Isapa     Ganmo Power Sub-Station     Odogun Olushola Gabriel     Kwara State Internal Revenue Service     Henry Makinwa     IF-K     Lotus Bank     Abdulwahab Ololele     Mohammed Jimoh Faworaja     Tescom.kwarastate.gov.ng     Omoniyi M. Ayinla     PAACO-PCL Consortium     Code Of Conduct Bureau     Benin Republic     Third Estate     Amina Susa\'a De Ahmed     Durbar     Asa     Mary Kemi Adeosun     Elerin Of Erin-Ile     Eleyele     AbdulFatai Adeniyi Dan-Kazeem     Abdulazeez Arowona     International Vocational Centre     Ilorin Muslim Community     Isiaka Danmeromu     Fatai Garuba Labaka     Oluronke Adeyemi     Haliru Dantoro     Oba Sulaiman Asude     Usman Rifun     Farouk Salim     Mutawali Of Ilorin     Kwara North     National Union Of Road Transport Workers     Musa Aibinu     Lanre Badmus     Lanre Badmas     Jaigbade Alao     AIT Ilorin     Twitter     Ilorin Airport     Vasolar     Seni Saraki     Isiaka Yusuf     All Confederation Of Principals Of Secondary Schools     Bola Ahmed Tinubu    

Cloud Tag: What's trending

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

Shuaib Abdulkadir     Olusegun Adeniyi     Yakubu Mohammed Abdullahi     Bamidele Aluko     Jumoke Monsura Gafar     Jumoke Gafar     Kazeem Adekanye     Stephen Fasakin     Oniyangi Kunle Sulaiman     Salihu Yahaya     James Ayeni     Olugbense     Aisha Abodunrin Ibrahim     Yusuf Aiyedun     Muhammed Aliyu     Paul Odama     John Kehinde Salako     Titus Suberu-Ajibola     Grillo     Borgu     Donatus Ejidike     Mohammed Khadijat Kubura     Sa\'adu Gambari     Ilorin Emirate Stakeholders Forum     Wahab Egbewole     Abdulmumini Sanni Jawondo     Segun Ogunsola     Aliyu Kora-Sabi     Bursary     Mamatu Abdullahi     Ibrahim Abdulqadir Abikan     Theophilus Oyebiyi     Ashiru     Saka Isau     Joseph Daudu     Mutawali Of Ilorin     Umar Saro     Alfa Modibbo Belgore     Wahab Agbaje     Ishaq Oloyede     Sheikh Alimi     AGF Abdulrazaq     Arik     Chemiroy Nigeria Limited     Sobi FM     Bukola Ajikobi     Sulu Babaita Isiaka     PAACO-PCL Consortium     Kwara State Television (KWTV)     Iponrin     Muhammad Mustapha Suleiman     Abdulwahab Ololele     Students Union Government     Atunwa     Ilorin Likeminds Foundation     Mary Kemi Adeosun     Aiyedun     Adeniyi Ojo     Kwara Pdp     07039448763     Ibrahim Bio     Ghali Muhammed     Kola Adesina     Olaoye B. Felix     Mohammed Katsina Ahmed     Ayobami Seriki     Bareke     Taofeek Sanusi     Isaac Gbenle     Oba Abu     Oke-Oyi     Sidikat Alaya     Ohoro Of Shao     Tunde Kazeem     Christopher Odetunde     Simeon Ajibola     Emir Of Kano