Friday
August, 19

Kenya Seizes $56.7 Million From Flutterwave Over Corruption, Money Laundering

Flutterwave’s financial assets have been frozen by Kenyan authorities following the filing of criminal accusations against the pan-African payment solutions company.

The Star in Nairobi said that the company was charged with carrying out suspicious transactions and failing to adhere to financial laws in Kenya. They added that Flutterwave was one of around seven companies included in the Wednesday indictment.

The largest of the companies under investigation, Flutterwave, had its accounts blocked by the nation’s Asset Recovery Agency for $56.7 million (6.7 billion Kenyan shillings), according to The Star.

“Investigations established that the bank accounts operations had suspicious activities where funds could be received from specific foreign entities which raised suspicion. The funds were then transferred to related accounts as opposed to settlement to merchants,” prosecutors alleged in filings.

Authorities issued warrants to confiscate Flutterwave’s accounts in April after launching investigations into the company some months earlier. According to The Star, a 90-day provisional seizure authorization has been issued, and the case will be heard on November 7.

The seizure order appears to be related to a report written by writer David Hundeyin and released in April 2022 that detailed numerous financial, criminal, and ethical transgressions against Flutterwave and its CEO Gbenga Agboola.

Mr. Agboola refuted the claims made by Mr. Hundeyin at Subtack, but he promised to improve the way he runs the company moving ahead.

According to the indictment published by The Star on Wednesday, Mr. Agboola carried out shady transactions totaling $101 million ($12 billion in Kenyan shillings) before authorities became aware of his antics.

READ MORE: NYSC Debunk Corps Members Rape In Akwa Ibom Attack

The Kenyan daily further claimed that Mr. Agboola and his associates in Nairobi operated covertly to take advantage of the nation’s banking system, making roughly 185 online card purchases using the same identifying number.

Anti-money laundering detectives also noticed a number of further suspicious transactions, including one such case in which Mr. Agboola is believed to have colluded with another Nigerian citizen to launder money through the Kenyan banking system.

“If indeed the Flutterwave was providing merchant services, there was no evidence of retail transactions from customers paying for goods and services. Further, there is no evidence of settlements to the alleged merchants,” Kenyan prosecutors added.

Other financial institutions in Kenya, such as GTBank and Ecobank, were also reported to have given Flutterwave access to their platforms.

Mr. Agboola made the political accusation in a text message to Peoples Gazette.

“Why are Nigerian companies in Kenya being targeted by Kenya ARA?” Mr Agboola said. “This is happening near their election time.”

Additionally, he noted that Flutterwave was not the first Nigerian company to be attacked in Kenya.

GTBank and Ecobank spokespeople did not immediately respond to calls for comment.

In recent years, Flutterwave has flourished as an example of an African success story that offers cutting-edge solutions to the continent’s undeveloped financial services industry.

Tiger Global and other major players in the international financial markets have contributed to the firm’s funding efforts. However, a number of allegations of fraud and unethical behavior have left the corporation facing its most trying year to date.

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Adoga Stephen
Adoga Stephen is a trained journalist, researcher, creative writer and freelancer. He studied Mass Communication at the Lagos State University of Science and Technology (then Laspotech) and acquired requisite skills for the practice of journalism, a profession he has been practicing since 2016.

Flutterwave’s financial assets have been frozen by Kenyan authorities following the filing of criminal accusations against the pan-African payment solutions company.

The Star in Nairobi said that the company was charged with carrying out suspicious transactions and failing to adhere to financial laws in Kenya. They added that Flutterwave was one of around seven companies included in the Wednesday indictment.

The largest of the companies under investigation, Flutterwave, had its accounts blocked by the nation’s Asset Recovery Agency for $56.7 million (6.7 billion Kenyan shillings), according to The Star.

“Investigations established that the bank accounts operations had suspicious activities where funds could be received from specific foreign entities which raised suspicion. The funds were then transferred to related accounts as opposed to settlement to merchants,” prosecutors alleged in filings.

Authorities issued warrants to confiscate Flutterwave’s accounts in April after launching investigations into the company some months earlier. According to The Star, a 90-day provisional seizure authorization has been issued, and the case will be heard on November 7.

The seizure order appears to be related to a report written by writer David Hundeyin and released in April 2022 that detailed numerous financial, criminal, and ethical transgressions against Flutterwave and its CEO Gbenga Agboola.

Mr. Agboola refuted the claims made by Mr. Hundeyin at Subtack, but he promised to improve the way he runs the company moving ahead.

According to the indictment published by The Star on Wednesday, Mr. Agboola carried out shady transactions totaling $101 million ($12 billion in Kenyan shillings) before authorities became aware of his antics.

READ MORE: NYSC Debunk Corps Members Rape In Akwa Ibom Attack

The Kenyan daily further claimed that Mr. Agboola and his associates in Nairobi operated covertly to take advantage of the nation’s banking system, making roughly 185 online card purchases using the same identifying number.

Anti-money laundering detectives also noticed a number of further suspicious transactions, including one such case in which Mr. Agboola is believed to have colluded with another Nigerian citizen to launder money through the Kenyan banking system.

“If indeed the Flutterwave was providing merchant services, there was no evidence of retail transactions from customers paying for goods and services. Further, there is no evidence of settlements to the alleged merchants,” Kenyan prosecutors added.

Other financial institutions in Kenya, such as GTBank and Ecobank, were also reported to have given Flutterwave access to their platforms.

Mr. Agboola made the political accusation in a text message to Peoples Gazette.

“Why are Nigerian companies in Kenya being targeted by Kenya ARA?” Mr Agboola said. “This is happening near their election time.”

Additionally, he noted that Flutterwave was not the first Nigerian company to be attacked in Kenya.

GTBank and Ecobank spokespeople did not immediately respond to calls for comment.

In recent years, Flutterwave has flourished as an example of an African success story that offers cutting-edge solutions to the continent’s undeveloped financial services industry.

Tiger Global and other major players in the international financial markets have contributed to the firm’s funding efforts. However, a number of allegations of fraud and unethical behavior have left the corporation facing its most trying year to date.

JOIN OUR NEWSLETTER

Our newsletter gives you access to a curated selection of the most important stories daily.

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