One of Africa’s largest unicorns, Flutterwave, has been under fire on social media since allegations of insider trading, sexual harassment and perjury hit the Nigerian payment infrastructure provider.
The reactions follow the allegations contained in an investigative report published on Tuesday by David Hundeyin, the Editor of West Africa Weekly.
The report accused Flutterwave’s Co-Founder and Chief Executive Officer, Olugbena Ayoola, of holding onto the stock options offered to a former employee, adding that others were made to sell their stock options below their values to an investment vehicle controlled by him.
Additionally, the report said Agboola and Flutterwave’s Chief Commercial Officer, Mr Ife Orioke, abused their position of power to have inappropriate sexual relationships with the company’s female employees.
In addition, the report alleged that Agboola created a phantom Flutterwave Chief Technology Officer, Greg Agboola, who needed to be given 10% of Flutterwave’s shareholdings from Co-Founders, Iyinoluwa Aboyeji and Adeleke Adekoya’s shareholdings.
Moreover, the CEO was said to have built Flutterwave while he was still the Head of Digital Factory & Innovation at Access Bank PLC, a Nigerian local lender.
In the report, Hundeyin alleged that the United States Securities and Exchange Commission (SEC) in 2018 got wind of the said insider trading practice and summoned Agboola, Aboyeji and the CEO of Access Bank, Herbert Wigwe, to a hearing.
According to the media report, the SEC did not confirm or deny the alleged insider trading but rejected a US Freedom Of Information Act (FOIA) request submitted by the journalist, citing privacy concerns.
Hundeyin wrote in the report: “In early 2018, news about this unholy arrangement got to the United States Securities and Exchange Commission (SEC), which has jurisdiction over the Delaware-registered corporation. Under US law, a conviction for insider trading carries a criminal sentence of up to 20 years in prison.
“According to several sources, GB [Agboola], Iyin [Aboyeji] and—for some reason—Herbert Wigwe flew to the Washington DC for an SEC hearing where they allegedly testified under oath that GB never worked simultaneously at Flutterwave and Access Bank.”
The report said Agboola for “at least two years had free reign” to use the lender’s assets to “benefit Flutterwave without the knowledge of Access Bank or most external Flutterwave stakeholders.”
Finance Magnates reached out to Flutterwave for a comment on these allegations but is yet to get a response as of press time.
However, Aboyeji, who resigned from the start-up in 2018, has made several tweets to clear his name.
The Co-Founder of Andela, who attacked the journalist for not reaching out to him for a comment, said Access Bank’s leadership were informed about Flutterwave.
The ex-CEO of Flutterwave also said the company maintained the “highest ethical standards” while he led the fintech company.
The ethical questions are did the leadership of Access Bank know GB and Leke were working on Flutterwave and I can confirm yes. Was their phased exit from access bank disclosed to investors and the answer is yes. Even I incorporated Flutterwave while being at Andela. https://t.co/1y01a7PNW7
— iyin.eth (@iaboyeji) April 13, 2022
By my hand I incorporated Flutterwave May 2, 2016 (while I was still at Andela by the way) and by my hand I resigned with a letter dated Oct 12, 2018. Every single necessary evidence has been preserved because I conducted myself with the highest integrity.
By my hand I incorporated Flutterwave May 2, 2016 (while I was still at Andela by the way) and by my hand I resigned with a letter dated Oct 12, 2018. Every single necessary evidence has been preserved because I conducted myself with the highest integrity.
— iyin.eth (@iaboyeji) April 13, 2022
Again I am painstakingly separating the actions of any individual from the corporate actions of a company I co-founded and built. While I was at the helm of Flutterwave we had the highest ethical standards. This is important for my stakeholders to know. Period.
Again I am painstakingly separating the actions of any individual from the corporate actions of a company I co-founded and built. While I was at the helm of Flutterwave we had the highest ethical standards. This is important for my stakeholders to know. Period.
— iyin.eth (@iaboyeji) April 13, 2022
Leaders in the emerging Nigerian tech ecosystem have started reacting to the report.
In a Twitter thread, Jason Njoku, the Founder of Iroko TV, an on-demand web TV platform, wrote that “mad money rush” was coming into the industry. Njoku restated the importance of the media in helping to sustain the Nigerian tech ecosystem.
Telling these stories are actually important in how we grow our ecosystem into self sustainability. In the long term thats all that matters. What we have now is hypebole to an extreme. Been saying it for years. Hot emerging market money poured into 🇳🇬 with zero checks & balances.
Telling these stories are actually important in how we grow our ecosystem into self sustainability. In the long term thats all that matters. What we have now is hypebole to an extreme. Been saying it for years. Hot emerging market money poured into 🇳🇬 with zero checks & balances.
— JasonNjoku (@JasonNjoku) April 13, 2022
On his part, Ikpeme Neto, the Founder of health-tech start-up, Well Health, described journalists as “a good check and balance mechanism” for the industry.
Startups are hard and have outsized rewards, founders are human so will ere. Journalists and whistleblowers are a good check and balance mechanism. Strive to be fair and do your best. Use the courts where needed and let the law do its job. Drink water. We will all be alright.
Startups are hard and have outsized rewards, founders are human so will ere. Journalists and whistleblowers are a good check and balance mechanism. Strive to be fair and do your best. Use the courts where needed and let the law do its job. Drink water. We will all be alright.
— Neto (@docneto) April 13, 2022
Matt Flannery, the Co-Founder and CEO of Branch.co, said there is more to come.
The #flutterwave scandal is just beginning. There’s more to come. This could cast a large shadow over Nigerian tech and valuations.
The #flutterwave scandal is just beginning. There’s more to come. This could cast a large shadow over Nigerian tech and valuations. https://t.co/cKMv2RzZkP
— Matt Flannery (@mattflannery) April 12, 2022
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