Flutterwave CEO Olugbenga Agboola has, for the primary time, addressed monetary and private misconduct claims leveled against him and the company this month, in keeping with an e mail to staff obtained by Avisionews.
“I’m writing right this moment as a result of I need you to understand how involved I’m concerning the influence that studying the false allegations in opposition to our firm has had on you all,” he wrote.
The truth that the allegations of monetary impropriety, battle of curiosity and sexual harassment have been proved false or have already been reported, investigated and addressed by administration issues much less to me than the fact that these claims could have shaken your confidence within the firm. As founder and CEO, it’s my accountability to handle the issues you could have, and this can be a precedence for me shifting ahead.”
These are the primary feedback by the chief govt since a report by West African Weekly, a Substack publication written by journalist David Hundeyin, revealed a number of allegations in opposition to the startup and Agboola starting from fraud and perjury to insider buying and selling and sexual harassment.
The report got here days after Clara Wanjiku Odero — an ex-employee and present CEO of Credrails — revealed a Medium post and a series of tweets on April 4 accusing the corporate and its CEO, Olugbenga Agboola, of bullying her previously.
It’s been per week since these allegations from the West African Weekly got here to mild. At some level, it was believed that Flutterwave wouldn’t handle them publicly. For most, the delayed response was a horrible look and spoke to a weak firm tradition which may result in extra tea spilled.
However three days in the past, TechCabal, a publication targeted on African tech, in an interview with ex-CEO Iyinoluwa Aboyeji mentioned it acquired a press release from Flutterwave’s administration that learn: “the weblog publish in query is predicated on recycled and beforehand addressed claims and a number of other others which might be false.” Agboola’s e mail to his staff carries the same characterization.
Allegations and Agboola’s response
One of many allegations in opposition to the CEO was his involvement together with his earlier employer, Entry Financial institution, whereas engaged on Flutterwave in its early days. Based on the report, Agboola didn’t let his earlier employers know he was engaged on the startup and was accused of benefiting from his place and sources to construct Flutterwave.
Agboola, within the e mail, responded to this by saying: “The allegations about how I began the corporate are unfaithful. I shared with you throughout the retreat {that a} former boss helped us shut one in all our enterprise purchasers. I’m grateful for the educational and mentorship I acquired on the quite a few employers I labored at earlier than beginning Flutterwave.”
On insider buying and selling accusations, Agboola is claimed to have created an funding automobile that cashed in on share costs bought under the corporate’s valuation to staff who had inventory choices, particularly earlier than a fundraising spherical.
However in keeping with Agboola, neither he nor Flutterwave has engaged in insider buying and selling and talked about that ex-employees bought shares they owned to outdoors events at some factors.
“We adopted all authorized processes and procedures, together with acquiring board approval when wanted, when approving the sale of shares,” he wrote. “As well as, we work carefully with our outdoors legislation companies to remain in compliance with all relevant laws.”
Addressing SEC-related points, Agboola additional backed the account supplied by ex-CEO Iyinoluwa Aboyeji to TechCabal on the matter, stating that in 2017, the SEC had an inquiry with which Flutterwave totally complied, and he’s unaware of any ongoing SEC investigation into the corporate’s actions.
Aboyeji, in his interview, mentioned that the SEC case was associated to issues about Flutterwave having some unaccredited buyers beneath U.S. legislation and was not an indictment on the CEO’s insider buying and selling accusations said in West African Weekly’s article.
The SEC didn’t verify or deny any investigation when Hundeyin, the publication’s writer, reached out, citing privateness circumstances.
The publication additionally disclosed a number of emails accusing Agboola and his co-founder Ifeoluwa Orioke of getting sexual relations with a number of feminine staff and harassing some. On this problem, Agboola wrote;
Now we have beforehand investigated worker sexual harassment allegations (together with these made in opposition to me, and of which I was cleared) and terminated staff who’ve been inappropriate in direction of crew members. Now we have had unbiased third occasion evaluations which gave start to the We Hear You and whistleblowing insurance policies that you simply all know of right this moment. Now we have at all times had a zero-tolerance coverage [to] sexual harassment and we’ll proceed to take motion when obligatory. No exceptions.
What Flutterwave and Agboola didn’t handle
The West African Weekly’s report accused Agboola of making a fictitious co-founder and CTO identification referred to as ‘Greg’ to allocate extra shares to himself (though he was the key shareholder) within the firm’s early days. And although Aboyeji, who was Flutterwave’s first CEO, verified this allegation in his interview, Agboola didn’t particularly handle this in his e mail to Flutterwave’s employees.
The chief govt didn’t additionally reply to the accusations that Flutterwave carried out fraudulent actions — with buyers’ information — in opposition to its purchasers.
Lastly, there was no phrase on the continued court docket circumstances it’s dealing with from ex-employees Clara Wanjiku Odero and one other girl, who, in keeping with the West African Weekly, is suing Flutterwave for not providing her inventory choices after virtually three years working on the firm in a senior function.
Right here is the fintech’s response to Odero’s. On the latter, Avisionews reached out for a remark concerning the allegations, together with its relationship with Banwo & Ighodalo, the mentioned ex-employee’s former authorized counsel that dropped her case regardless of displaying preliminary curiosity in going up in opposition to the unicorn.
“As a common coverage, we don’t touch upon particular worker issues of this nature or pending litigation even when they could contain false, recycled, or beforehand addressed claims,” Flutterwave mentioned in an e mail to Avisionews. B&I, alternatively, didn’t reply to Avisionews’s request for remark.
In the meantime, a supply informed Avisionews that Agboola has since made an out-of-court supply to this ex-employee by means of an middleman. The supply additionally mentioned the ex-employee rejected the proposal, which was considerably decrease than the present worth of her 40,000 shares signed off by ex-CEO Aboyeji throughout his time as CEO.
Aboyeji didn’t touch upon the variety of shares or its present worth, however right here’s what he informed Avisionews:
“Once I was on the helm of Flutterwave, it was essential to me that every one our employees had been rewarded for his or her unbelievable sacrifice in serving to us construct an incredible firm,” he mentioned. “I helped design the inventory choices program of the corporate and had drawn up with my co-founders, early staff and advisors who will be rewarded with inventory choices [including *the ex-employee] however couldn’t totally implement earlier than I resigned.”
Why Flutterwave didn’t proceed to implement the settlement, notably hers, is unclear, even to the then-CEO.
“I was made conscious afterward that the founders determined to do issues in another way and a number of the folks on that record weren’t issued inventory choices after I left, however I don’t know why,” he added.
Flutterwave needs to repair up with its CEO nonetheless on the helm
Within the e mail to his staff, CEO Agboola outlined actions the corporate would perform to enhance its tradition, which appears to be like tainted in the meanwhile within the eyes of the general public.
These measures embody enhancing its HR insurance policies whereas working carefully with audit and advisory companies, taking a survey of staff — notably feminine staff — to get suggestions on their experiences within the firm, an “inclusive office coaching,” growing psychological well being sources, and offering extra transparency.
“Now we have made some vital adjustments to how we talk transparently within the group on compensation, promotions, and many others.,” the CEO wrote. “As well as, all members of the chief management crew will maintain month-to-month open hours for workers in any respect ranges. This can be a time for us to listen to immediately from all of you and what we might be doing to be repeatedly enhancing.”
On the one hand, it’s comprehensible that Flutterwave needs to revive the picture it had simply months in the past because the darling of Africa’s tech ecosystem. Nonetheless, the questions on some minds can be why the corporate is making these adjustments if these complete claims are false.
Talking about adjustments and opposite to what tech stakeholders may need thought would occur, it seems Agboola is not going to be stepping down as CEO simply but. There was no point out of that within the e mail.
Alongside the management crew, Agboola mentioned he plans to go to each Flutterwave workplace on the continent by the tip of the yr to have “one-on-one” chats with staff.
The top of the e-mail reiterates this:
I do know it is a lot to soak up! We can have extra conversations to debate all this in higher element. I need to hear from you all and reply any questions you may have.
I’ll finish by saying that after we began the corporate in 2016, our mission was to simplify funds for countless potentialities for companies, customers, and particularly our prospects. That continues to be our mission, of which all of you’re a essential half in making a actuality.
I’ll at all times put Flutterwave first. And Flutterwave is all of you. Like I at all times say our individuals are the key sauce of Flutterwave and I imply that.
…Thanks for reminding me that to whom a lot is give, a lot is required. I’ll reside as much as your expectations of me.
