RIGHT OF REPLY: On Dr. Bukola Saraki's London House: For the Records

Date: 2005-11-05

by Bolaji Abdullahi Saturday, 05 November 2005

I refer to your of October 11, 2005, which dealt with the issue of Dr. Saraki's ownership of a house on Bourne streetin London. You might wonder why after almost a month, we are just reacting now to this story. One reason we have not reacted was because we did not see anything ordinarily wrong with your story. The ownership of the house was never in doubt, and it was never a secret. Secondly, your story has not accused Dr. Saraki of any wrong doing regarding the ownership or acquisition of the house, either as a private citizen or as a public officer.
More importantly, we believe that if we must strengthen our governmental institutions and promote the quality of governance in our country, media of all forms have a great role to play and therefore, should be allowed to operate freely and probe into the activities of public officers as it affect their official duties so long as they do so in fairness and justice.


However, we have noticed with great concern the flurry of comments and reactions that your story has provoked since it was published. Most of these reactions, regrettably, have not done justice to your otherwise well intended story. We observe that there is nothing in your story that warrants the kind of conclusions, assumptions and insinuation that have dominated the debate around the issue. Even those who have, out of their free volition, sought to "defend" Dr. Saraki, had operated from the same wrong assumptions and have imputed into your story, meanings and interpretations that even you, probably did not intend.

It is quite easy however, to understand why this is so. Your story came at a time that the public image of Executive Governors in Nigeria is probably as its lowest. At a time that one of them was being held on accusation of financial impropriety, all other Governors naturally stand suspected in the eyes of the public. In the catch-the-thief hysteria that dominated political discussions in that period, any public officer who has any personal property or anything at all, is automatically assumed to have acquired such through fraudulent means.

We had hoped that more reasoned views would prevail in the end if the debate is allowed to rage freely. However, we have seen that this was not about to happen. It is for this reason that we consider it necessary to state Dr. Bukola Saraki's position and set the records straight.

As you had correctly state in your story, Dr. Saraki bought the house in 2001 with a bank loan. However, as we have noted elsewhere, Dr. Saraki has been investing in properties in the United Kingdom as far back as 1989, when he was just 27 years old. His second property was in 1992, another in 1995, before this one in 2001. This goes to show that buying the kind of property in question has been a very gradual process that had taken many years of buying smaller houses and selling them off and buying bigger ones.

Some commentators have however, sought to force a link between the time the house was purchased and the problem at the SGBN and make a capital of the bank's unfortunate to push the insinuation of corruption against Dr. Saraki and his fellow directors of the bank.

It is important to note however, that as at 2001 the bank has not shown any sign of depression. This, in fact, did not start until 2003. Moreover, companies all over the world experience problems. However, these problems do not have to be the result of someone taking money from the company. In the particular case of the SGBN, it was barred from the clearing floor in 2003 because it overdrew its balance at the CBN. Had it not been barred, its officials still insist, the bank would have surmounted the problem and would remain in operation today. You will agree that some of these issues are more political than procedural.

You would also agree with me that the war on corruption is perhaps the most important policy thrust of the Federal Government. If there had been any indication or evidence that Dr. Saraki and the SGBN directors had been involved in financial malpractices, they certainly would not have been spared.

The credibility of the EFCC locally and internationally is based on the fact that the institution has lived up to its motto that no one is above the law, and there are no sacred cows. If the EFCC could bring to books the third citizen of the country, the former Senate President, who then is a Governor or his family that the anti-corruption agency would not be able to charge them? Yet, uptill today, the EFCC has not brought any charge against Dr. Saraki or any member of his family for removing money from the SGBN into any private account anywhere?

It is indeed, inconceivable that anyone in today's world would successfully hide billions of Naira without leaving any trace. How long did it take to trace money hidden in private accounts by the late General Sani Abacha or former Inspector General of Police, Tafa Balogun? So, if there is any such private account kept by Dr. Saraki or any member of his family where billions of Naira has been stashed, by now the EFCC ought to have discovered such.

It seems to me that the impression that many have erroneously taken away from your story was that Dr. Saraki took 4.5million pounds and went to buy a house. However, as you reported Dr. Saraki took a loan to pay for the house. The initial deposit required for the house was between 20-30% of the total amount it was sold. He was able to mobilize this amount from the sales of the previous properties he had, while the balance is payable though a 25 year mortgage. If you do your calculation, this would approximate to between N3-4million monthly. You would agree with me that Dr. Saraki certainly has the personal wherewithal to meet this level of obligation. The important point to note here is that the issue of him taking 4.5million pounds to buy a house should not arise at all.

Focusing on the bank, information available indicates that of all the banks that had problems at the same time with the SGBN, it has made the most efforts to ensure repayments to its depositors and bring back the bank. In the last one year, shareholders of SGBN have successfully deposited over N2billion with the CBN to cater for all small-time depositors. To be precise, 130, 000 out of a total of 132, 000 customers would be taken care of by this deposit. Out of the remaining 2, 000 customers, who are corporate depositors, 50% have agreed to convert their deposits into equity. And this is an on-going process. In the end, no depositor, individual or corporate, would have lost their money to the problem at the SGBN. All these can be verified from the CBN.

Perhaps, an individual customer that had generated the most interest is the Super Eagles captain, Jay Jay Okocha. I wish to state here that the Super Eagles captain and the SGBN have worked out a repayment programme which is already at 75% completion. The bank has not defaulted on the repayment schedule since it was negotiated and this is why the footballer is not raising any dust. Again, this can be verified from Okocha himself.

The age-old journalism axiom states that facts are sacred, but comments are free. We urge you to kindly make these facts available to your readers so that subsequent comments would be guided by them.

In conclusion, Dr. Saraki wishes to thank you for the great work you are doing, which he believes has broadened the frontiers of anti-corruption battle and strengthened accountability among public officers. Best wishes.

Bolaji Abdullahi a former Thisday Staffer is Special Adviser Policy and Strategy, to the Executive Governor of Kwara State.

 


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