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Scandal Ridden Flutterwave Banking On Ruto’s Presidency To Recover Frozen Millions In Kenya, Whistleblower Claims

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David Hundeyin a Nigerian based investigative journalist who blew the whistle on the fintech firm Flutterwave exposing the rot in its management that eventually saw the CEO Olugbenga “GB “Agboola resign, has now sensationally claimed that the embattled firm which is currently in bad books with the Kenyan investigative authorities, is waiting with baited breath for ascension of William Ruto to power.

One of the allegations against the CEO was his involvement with his previous employer, Access Bank, while working on Flutterwave in its early days. According to the report, Agboola didn’t let his previous employers know he was working on the startup and accused the CEO of taking advantage of his position and resources to build Flutterwave.

On insider trading accusations, the report said Agboola created an investment vehicle that cashed in on share prices sold below the company’s valuation to employees who had stock options, especially before a fundraising round.

The newsletter also disclosed several emails accusing Agboola and CCO Ifeoluwa Orioke of having sexual relations with several female employees and harassing some.

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Accounts frozen in Kenya

In the heights of the circus, the Kenyan authorities discovered illegal activities in the firm’s business in Kenya and has since frozen their bank accounts twice and withholding hundreds of millions.

In August, High Court had frozen another Sh400.6 million in three bank accounts and 19 Safaricom M-Pesa paybill numbers  belonging to Nigerian start-up Flutterwave linked to card fraud and money laundering.

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The millions held in two accounts at UBA Bank, one account at Access Bank and 19 M-Pesa paybills were frozen after the Assets Recovery Agency (ARA) applied to block the transfer or withdrawal, pending the filing of a petition to have the money forfeited to the government.

The amounts frozen include Sh110 million in UBA account, another US $ 556,622 (Sh66.7 million), Sh29.1 million in Access Bank and Sh68 million, Sh112 million and Sh14.5 million in a total of 19 Safaricom Paybill numbers.

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Justice Grace Nzioka barred the companies from withdrawing, transferring or dealing with the money, pending ARA’s probe.

“A preservation order be and is hereby issued prohibiting 1st respondent or his agents or representative from transacting, withdrawing, transferring, using any other dealings in respect to the money held in the account,” ruled  Justice Nzioka.

The agency said in court filings that the bank accounts received millions of shillings whose source is suspected to be money laundering and card fraud.

The freezing order comes barely two months after more than Sh6.2 billion spread in 62 bank accounts belonging to the Flutterwave and four Kenyans were also seized on similar grounds.

The transactions in the earlier case were done using cards issued by the same bank, at the same point, on the same day, raising suspicion of card fraud.

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In the latest case, ARA said debits amounting to Sh136 million, which included chargebacks, reversals and refunds are an indication of card fraud.

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Another account was used to convert dollars into shillings, in a scheme of layering and intermingling.

Hundeyin had predicted that the cases would disappear as soon as Ruto clinches power and claimed that his son-in-law had links to Flutterwave.

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In a quick turn of events, the cases appears to have been withdrawn according to a 7/9/2022 court order by high court and much to the predictions of the whistleblower.

Flutterwave Payments Technology ltd is owned by Nigerians Olugbenga Agboola, Adeleke Christopher, Iynoluwa Samuel and Flutterwave Inc which is registered in the United States with an office on 1323 Columbus Avenue, San Francisco.

A Kenyan– David Mouko Elizaphan Omaanya– is also a director but has zero shares. The Nigerian firm was founded in 2018 by Olugbenga Agboola and Iyinoluwa Aboyeji.

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