Connect with us

Startups

EFCC’s Leatherback Investigation is Unfounded and Without Merit, Here’s Why

Published

on

The Economic and Financial Crimes Commission (EFCC) is tasked with the investigation of all financial crimes, but declaring Ibrahim Ibitade, the CEO of Leatherback wanted, feels like a rather strange route to take in its quest to ensure it stays true to its course. 

Despite the company’s cooperation in an ongoing fraud investigation, the Agency went ahead to declare Ibitade wanted on Thursday afternoon via Instagram. The post stated that the 31-year-old is wanted in connection with allegations of conspiracy and obtaining money under pretense.

The Leatherback CEO has reacted to the wanted notice by refuting claims that he is in hiding and questioning the agency’s conduct. In his words, “If a commercial bank in Nigeria issues an account to an individual or a business and that business goes to defraud other people, will you declare the CEO of the commercial bank wanted?”

Ibitade’s company is a digital bank that issues accounts in Dollars, Pounds, and about 14 other currencies, helping merchants and individuals facilitate cross-border banking and payment needs in several countries. 

He revealed that Leatherback has consistently cooperated with the EFCC, attending every meeting with the EFCC team. The company had been duly represented by its head of compliance in the Lagos and Abuja offices of the EFCC. According to him, the team has spent 35 of the last 60 days at the EFCC office, addressing all inquiries that have been raised. 

Leatherback has actively supported the EFCC investigation by providing over 2,000 printed documents for extensive clarification. In addition to the cooperation with the Agency, Leatherback launched an internal investigation and took proactive steps by filing a Suspicious Activity Report (SAR) in both the UK and Nigeria.  

In spite of Leatherback’s continuous willingness to cooperate and prove its innocence in the face of these fraud allegations, EFCC has continued to come after the company and CEO.

But how did we get here? 

The EFCC began investigating fraud allegations a few months ago involving SDQ Facilitators, an account holder with Leatherback, with no special relationship beyond regular account services provision.

Leatherback, which currently has over 50,000 users across its 12 countries of operations, issued an NGN and USD account to a user called SDQ Facilitators. The account exchanged Naira deposited in their account for USD, which they could then initiate a payout to the final beneficiary from their USD account. 

In September 2023, Leatherback was notified by the EFCC that the account maintained by SDQ facilitators had been used to possibly perpetuate fraudulent activities. Leatherback immediately started providing the authorities with all the required information to aid their investigation.

The company’s findings show that SDQ Facilitators began processing a significantly high volume of transactions from May to August. SDQ Facilitators’ transactions were found to closely mirror those processed by Hekima International, a previous account holder onboarded onto Leatherback in the latter part of 2022. This suggests that Hekima may have redirected some of its clients to SDQ Facilitators.

The internal investigation turned up a few victims who revealed that they were introduced to SDQ Facilitators by a Hekima associate when they were unable to process their transactions on the platform.

Leatherback delisted Hekima International in June 2023 from its platform and restricted account access due to risk and compliance concerns. This decision was prompted by Hekima International receiving third-party USD funds from a flagged sender in the USA.

SDQ Facilitators took over from Hekima with Fx transactions until early August, when Leatherback received a notification from its bank that it had suspended all USD transactions for about two weeks. This interruption exposed the fraudulent practices of SDQ Facilitators, who had been utilizing client funds for other transactions while awaiting new funds.

Leatherback inundated with requests from clients unknown to them, sought to confirm the status of transactions completed through SDQ Facilitators. In the subsequent weeks, it became evident that SDQ Facilitators had fraudulently collected funds from third parties, unknown to Leatherback, under the guise of assisting with settling USD payments. 

Following the EFCC investigations and clarification efforts by Leatherback, an internal investigation uncovered the following facts: 

  • Almost all of Hekima’s transactions shifted to SDQ facilitators after Hekima’s account was delisted. 
  • Victims confirmed that Hekima’s associate, Olugboyega Agbede, introduced them to SDQ Facilitators after Hekima could no longer assist with processing their transactions. 
  • Ade Mosuro, a non-executive director at Hekima International, introduced victims to SDQ Facilitators after confirming they could no longer process transactions through Hekima International. 
  • Victims, including Al-Pasie and Nolt Finance, were introduced to SDQ facilitators by both Ade Mosuro and Olugboyega Agbede. 
  • These victims were among the most active trading clients with Hekima when it had an active account with Leatherback. 

These findings prove that Leatherback had no direct involvement with SDQ Financials and was unaware of the account holder’s fraudulent transactions. The investigation continues to unravel intricate connections and patterns associated with this complex financial situation.

It is important to note that it feels like a futile effort to declare the head of a company that has so far been very cooperative when in fact the real perpetrators of the crime walk free. Leatherback remains unfazed amidst the ongoing controversy and is committed to clearing its good name. 

Continue Reading
Comments

Startups

African Startup Funding Shrinks to from $1.8bn to $780m in H1 2024

Published

on

Start-up - Investors King

Funding to African startups contracted to $780 million in the first half of 2024 from the $1.8 billion recorded during the same period in 2023.

Despite the overall downturn, Nigeria emerged as a beacon of resilience, managing to sustain its funding inflows amidst the widespread decline.

According to Africa: The Big Deal, a platform that tracks startup funding, Nigeria has maintained a steady flow of investment, setting it apart from its counterparts.

By mid-2024, startup investments across Africa had surpassed the $1 billion mark, buoyed by two major deals: d.light’s new $176 million securitization facility and MNT-Halan’s $157.5 million raise to fuel their expansion.

These significant transactions, along with NALA’s $40 million Series A in July, contributed to making July 2024 the most successful month for African startup fundraising in over a year, exceeding the total raised in the entire second quarter of 2024.

The “big four” economies—Nigeria, Egypt, Kenya, and South Africa—typically attract the highest funding on the continent.

However, this trend shifted in the first half of 2024, with Nigeria being the only country among them to maintain its funding levels.

Max Cuvellier Giacomelli, a presenter during the Africa Startup Funding Round-Up 2024 mid-year edition, highlighted this anomaly.

He noted that while funding to Kenya, Egypt, and South Africa saw significant reductions, Nigeria held steady, showcasing its strong investment appeal amidst global economic challenges.

“There has been significant shrinkage in the amount of funding invested on the continent, affecting mostly three of the big four—Kenya, Egypt, and South Africa. Nigeria, however, is holding steady,” Giacomelli said.

He further pointed out the growing share of funding raised in Western Africa, outside of Nigeria, indicating a broader regional resilience.

In terms of sector performance, logistics and transport led the way, capturing 28% of total funding and surpassing the historically dominant fintech sector, which accounted for 23%.

This shift was driven by notable deals such as Moove’s $100 million investment by Uber, propelling its valuation to $750 million.

Energy and water followed, securing 17% of the funding, with agriculture and food receiving just below 10%.

Maxime Bayen, another expert during the review, provided further insights into the funding landscape.

He projected that total funding for African startups by the end of 2024 would range between $1.5 billion and $2 billion, significantly below the levels seen in 2023 and far from the $3.2 billion raised by mid-2022.

This forecast underscores the ongoing economic adjustments and the cautious approach of investors in the current climate.

Despite the overall decline, there were positive signs. The number of startups raising over $1 million remained comparable to previous years, excluding the exceptional 2022 figures.

Also, there was a notable increase in the share of debt raised by startups, reflecting a shift in financing strategies amidst tighter equity markets.

The African startup ecosystem, while facing significant funding challenges, continues to adapt and evolve. With Nigeria leading the charge, there is cautious optimism that targeted investments and strategic innovations will help navigate these turbulent times and lay the groundwork for future growth and stability.

Continue Reading

Startups

Google Leads $250 Million Funding Round for Glance

Published

on

A logo is pictured at Google's European Engineering Center in Zurich

Google is leading a $250 million funding round for Glance, a mobile content provider.

This infusion of capital aims to expand Glance’s reach and solidify its market position amidst growing competition.

Glance, a subsidiary of InMobi Group, offers a unique service that delivers news, entertainment, and other content directly to users’ mobile screens without unlocking their devices.

With a user base exceeding 300 million across India, the US, Japan, and Indonesia, the startup has gained significant traction since its inception in 2019.

The funding round, expected to close in the coming weeks, marks a continued partnership between Google and Glance.

Google initially invested in the company in 2020, and this latest round will further enhance Glance’s capabilities to innovate and reach new audiences.

This investment reflects Google’s strategic interest in India, the world’s most populous nation, where it competes with tech giants like Microsoft, Meta, and Amazon.

With India’s rapidly growing middle class and increasing smartphone adoption, the market presents vast opportunities for digital expansion.

The support from Google comes on the heels of a previous $200 million investment by Mukesh Ambani, Asia’s wealthiest individual, which valued Glance at over $1 billion.

The startup’s largest stakeholder, InMobi, continues to thrive as a pioneer in mobile advertising, with Glance benefiting from its expertise and resources.

As Glance prepares for this new phase of growth, it stands poised to redefine how content is consumed on mobile devices worldwide.

Continue Reading

Startups

Former Konga CEO Nick Imudia Dies by Suicide in Lagos Home

Published

on

Nick Imudia

The Nigerian business community was rocked by tragedy as Nick Imudia, former CEO of e-commerce giant Konga and current CEO of solar energy solutions innovator D.light, died by suicide in his Lekki apartment.

Imudia’s death, confirmed on the night of Tuesday, June 25, has left friends, family, and colleagues in a state of shock and sorrow.

According to sources, Imudia reportedly took his own life by jumping from the balcony of his home. In the moments leading up to the tragic incident, he made a series of distressing phone calls.

He reached out to his brother in the United States, giving detailed instructions on how to distribute his wealth should anything happen to him.

Imudia also spoke to his young daughter from a previous relationship, offering her comforting words and telling her to look to the sky to see him.

Imudia’s sudden death has raised many questions among those who knew him. Described by colleagues as a visionary leader, Imudia was instrumental in the growth of Konga, one of Nigeria’s largest e-commerce platforms.

After his tenure at Konga, he continued to make significant contributions to the tech industry as the CEO of D.light, a company known for its innovative residential solar energy solutions.

Imudia hailed from Ika South Local Government Area of Delta State and had a young daughter from a previous marriage that ended due to irreconcilable differences.

Despite the end of his marriage, those close to him said he maintained a strong bond with his daughter, often expressing his deep affection for her.

The reasons behind Imudia’s decision to end his life remain unclear. As news of his death spread, messages of condolence and tributes poured in from friends, family, and business associates.

Many have expressed their profound sadness and confusion as Imudia was widely seen as a successful and driven individual.

“Nick was a brilliant mind and a compassionate leader,” said a former colleague. “His death is a huge loss to the tech community in Nigeria and beyond. We are all struggling to understand why this happened.”

Authorities are investigating the circumstances surrounding Imudia’s death. Meanwhile, his family has asked for privacy as they navigate this difficult time.

Nick Imudia’s death is a stark reminder of the unseen struggles many face, even those who appear successful and accomplished.

His passing has sparked conversations about mental health awareness, urging individuals to seek help and support when needed.

Continue Reading

Trending