Lagos, Nigeria – In October 2024, employees of Marasoft Pay, a Nigerian fintech operating in Kenya and Nigeria, briefly celebrated the resolution of two months of unpaid salaries. However, their relief quickly turned to dismay when their bank accounts—and those of individuals they had transferred money to—were frozen due to funds traced to a suspected fraudulent source.
According to six former employees who spoke to TechCabal under anonymity, the payment fiasco began on October 16, 2024. A glitch in Marasoft’s payment system allowed the company access to more funds than were available in its Flutterwave wallet. CEO Emmanuel Marakwe-Ogu allegedly exploited the glitch to withdraw over ₦84 million ($54,000) in a span of 12 hours through 102 transactions linked to his phone number and bank verification number (BVN). Of this amount, ₦35 million was used to pay employee salaries.
Suspicious Payments and Frozen Accounts
The payments, made directly from Marasoft’s Flutterwave wallet instead of the company’s HR account, raised immediate concerns among employees. Their fears were confirmed days later when their accounts were frozen. An email from Flutterwave to one employee stated:
“Unfortunately, we are unable to lift the PND (post no debit) on the account at this time. The funds deposited into your account have been traced to a fraudulent merchant, and investigations are currently ongoing.”
The incident also affected employees’ ability to access their funds or conduct transactions. At least 40 workers were forced to begin legal efforts to unfreeze their accounts, while the company’s financial troubles deepened.
Marasoft’s Complicated Financial Maneuvers
After paying the salaries, Marakwe-Ogu allegedly transferred ₦49 million to several accounts through third-party payment processors like Transact Pay, a European fintech, before moving funds to a VFD Bank account under his control. By October 24, Transact Pay initiated a recall request for ten transactions worth ₦19.3 million, but the damage was already done.
Employees described feeling misled as Marakwe-Ogu initially assured them that the account restrictions were temporary. Behind the scenes, the CEO reportedly negotiated a five-month repayment plan with Flutterwave, which expires in February 2025. Flutterwave declined to comment on the repayment agreement, citing confidentiality.
Escalating Tensions and Employee Fallout
As the situation worsened, Marakwe-Ogu requested a recall of the salaries via the Nigerian Inter-Bank Settlement System (NIBSS), but the issues persisted. By November 2024, employees began resigning en masse as frustration over frozen funds mounted. Many accused Marakwe-Ogu of deliberately mishandling the company’s finances.
“He removed us from the company’s WhatsApp group and stopped taking our calls. It became clear that this was deliberate,” said a former senior employee.
One employee recounted how the incident left her in financial distress. With her account frozen, she had to borrow money from her father to repay her contributions in a group savings scheme.
Marasoft’s Resumption Amid Lingering Issues
Despite the controversy, Marasoft resumed operations in January 2025, and at least eight employees have returned to the company. However, numerous accounts remain frozen, and former staff members say they are still owed salaries.
Join our Channel...