Flutterwave CEO finally addresses alleged misconduct claims in email to employees

Flutterwave CEO Olugbenga Agboola has, for the primary time, addressed monetary and private misconduct claims leveled towards him and the corporate this month, in line with an e-mail to staff obtained by TechCrunch..

“I’m writing immediately as a result of I would like you to understand how involved I’m in regards to the influence that studying the false allegations towards 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 deal with the considerations you might have, and this might 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 towards 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 publish and a collection of tweets on April 4 accusing the corporate and its CEO, Olugbenga Agboola, of bullying her up to now.

It’s been per week since these allegations from the West African Weekly got here to gentle. 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 that 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 obtained an announcement 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 can be false.” Agboola’s e-mail to his staff carries the same characterization.



Allegations and Agboola’s response
One of many allegations towards the CEO was his involvement along with his earlier employer, Entry Financial institution, whereas engaged on Flutterwave in its early days. In line with the report, Agboola didn’t let his earlier employers know he was engaged on the startup and was accused of making the most of 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 through the retreat {that a} former boss helped us shut one in all our enterprise purchasers. I’m grateful for the educational and mentorship I obtained on the quite a few employers I labored at earlier than beginning Flutterwave.”

On insider buying and selling accusations, Agboola is alleged to have created an funding car that cashed in on share costs bought beneath the corporate’s valuation to staff who had inventory choices, particularly earlier than a fundraising spherical.

However in line with Agboola, neither he nor Flutterwave has engaged in insider buying and selling and talked about that ex-employees bought shares they owned to exterior 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 exterior regulation corporations to remain in compliance with all relevant laws.”

Addressing SEC-related points, Agboola additional backed the account offered 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 considerations about Flutterwave having some unaccredited buyers underneath U.S. regulation and was not an indictment on the CEO’s insider buying and selling accusations acknowledged in West African Weekly’s article.

The SEC didn’t affirm or deny any investigation when Hundeyin, the publication’s writer, reached out, citing privateness situations.

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 situation, Agboola wrote;



We’ve got beforehand investigated worker sexual harassment allegations (together with these made towards me, and of which I was cleared) and terminated staff who’ve been inappropriate in direction of crew members. We’ve got had impartial third get together opinions which gave beginning to the We Hear You and whistleblowing insurance policies that you just all know of immediately. We’ve got at all times had a zero-tolerance coverage [to] sexual harassment and we’ll proceed to take motion when crucial. 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 id referred to as ‘Greg’ to allocate extra shares to himself (despite the fact that he was the foremost 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 workers.

The chief govt didn’t additionally reply to the accusations that Flutterwave carried out fraudulent actions — with buyers’ information — towards its purchasers.

Lastly, there was no phrase on the continuing courtroom circumstances it’s dealing with from ex-employees Clara Wanjiku Odero and one other girl, who, in line 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, TechCrunch reached out for a remark relating to 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 towards the unicorn.
“As a basic 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 TechCrunch. B&I, then again, didn’t reply to TechCrunch’s request for remark.

In the meantime, a supply instructed TechCrunch that Agboola has since made an out-of-court provide 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 instructed TechCrunch:

“After I was on the helm of Flutterwave, it was crucial to me that each one our workers had been rewarded for his or her unimaginable 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 among the folks on that checklist 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 seems to be tainted in the mean time within the eyes of the general public.

These measures embrace bettering its HR insurance policies whereas working carefully with audit and advisory corporations, taking a survey of staff — notably feminine staff — to get suggestions on their experiences within the firm, an “inclusive office coaching,” rising psychological well being sources, and offering extra transparency.

“We’ve got 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 manager management crew will maintain month-to-month open hours for employees in any respect ranges. This might be a time for us to listen to straight from all of you and what we may be doing to be constantly bettering.”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 might be why the corporate is making these adjustments if these total claims are false.

Talking about adjustments and opposite to what tech stakeholders may need thought would occur, it seems Agboola won’t 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 top of the yr to have “one-on-one” chats with staff.

The tip of the e-mail reiterates this:

I do know it is a lot to absorb! We can have extra conversations to debate all this in better element. I wish to hear from you all and reply any questions you have got.

I’ll finish by saying that after we began the corporate in 2016, our mission was to simplify funds for limitless 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 persons 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 stay as much as your expectations of me.

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