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.

Olusola Saraki     Funmilayo Braithwaite     Jimoh Akani     Kayode Yusuf     M.Y. Abdulrahaman     Vasolar-Kwara Company Ltd     Omoniyi M. Ayinla     Arinola Fatimoh Lawal     Federal Polytechnic Offa     Aasiyat Bello Oyedepo     Senate President     Kwara Coalition Of Business And Professional Associations     Oba Sulaiman Asude     Labour Party     Wole Oke     Onilu     Women For Change And Development Initiative     Emmanuel Bello     Amusa Bello     Oni Adebayo     Ridwan Agboola     Kale Kawu     Omar Gambari     Al-Hikmah University     Ajia-Bako     Ahmad Uthman     Owo Isowo     Yakubu Gobir     Alloy Chukwuemeka     Gambari     Segun Adeniyi     Kupchi Hosea Maxwell     Salary     Yinka Aluko     ER-KANG     Ahmed \'Lateef     Issa Oloruntogun     Senate     Kayode Oyin Zubair     Ilorin     Ayeyemi Sulaiman     Abdullahi AbdulMajeed     Ganiyu Abolarin     TESCOM 2025     Ekweremadu     Fola Consultant     Sabi     Ile Arugbo     Muritala Olarewaju     Kishira     Abubakar Abdullahi Bata     TIIDELab     Ibrahim Agboola Gambari     Abiodun Abdulkareem     Road Transport Employers Association Of Nigeria     Kamoru Kadiri     GRA     Ebola     Umar Danladi Shero     Afonja Descendants Union     Mukhtar Shagaya     Wahab Issa     Vasolar     Adebayo Salami     Solomon Edojah     A.O. Belgore     Aminat Ahmed     Binta Abubakar-Mora     AbdulHamid Adi     Alao Ayotunde     Ita-Nmo Market     Budo-Egba     Oba Abu     Yusuf Lanre Badmas     State Bureau Of Internal Revenue     Asa LGEA School     Kawu    

Cloud Tag: What's trending

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

Oasis Muslim Care Foundation     Bankole Omishore     Razaq Ayobami Akanbi     Kwara State Government     Valsolar Consultoria     Olokoba     Yunus Lawal     Ibrahim Agboola Gambari     Olota Of Odo-Owa     Durbar     Raimi Iyanda     Muhammed Abdullahi     Mohammed Haruna     Kwara Hotel     Omoniyi Ayinla     Fatai Olodo     Alfa Modibo Belgore     Kehinde Boyede     Share     Umar Adelodun     Bond     LAK Jimoh     Ministry Of Women Affairs And Social Development     Ijagbo     Babata     Mansur Alfanla     John Obuh     Isiaka Abdulrazak     Oluwole Dupe     Kayode Issa     20 Billion Bond     Okala Baba     SDP     Orire     Ishola Abdullahi     Muyiwa Oladipo Kanu     Abdulkarim Adisa     Halimat Yusuf     Kwara State University Of Education     Wahab Abayawo     Chief Imam Of Ilorin     Isaac Aderemi Kolawole     Democracy Day     Eghe Igbinehi     Mohammed Alabi Lawal     Ibrahim Akaje     Road Transport Employers Association Of Nigeria     Iqra Books     JSSCE     Razak Atunwa     Ahmed Shuaib Buranga     FOMWAN     Admiralty Villa     Clara Nwachukwu     Monthly Sanitation     TETFUND     Jumoke F. Ajao     Gbenga Olawepo     Minimum Wage     Student Learning Support Helpline     Ibrahim Jawondo     Kwara Primary Health Care Development Agency     Obuh     Face Masks     Ilorin West/Asa Federal Constituency     Olayinka Oladapo Jogunola     Yusuf Amuda Gobir     ITEM 7     Abdulahi Abubakar Bata     Kwara Consultative Forum     Association Of Kwara State Online Media Practitioners     Al-Adaby     Raji AbdulRasaq     JAAC     Oke-Kura     Kwara State Infrastructure Development Fund     Kuliyan Geri