In October 2024, employees at Marasoft Pay, a Nigerian fintech founded by Emmanuel Marakwe-Ogu, experienced what seemed like a long-awaited resolution: payment of two months of overdue salaries. But their relief was short-lived.
Within days of receiving their payments, employees were stunned to discover that their accounts—along with the accounts of those they had sent money to—were frozen. The funds, they learned, had been traced to a suspected fraudulent source, according to six former employees who spoke with TechCabal on condition of anonymity for fear of retaliation.
Marasoft Pay, which operates in Kenya and Nigeria, allows businesses and individuals to collect payments via its platform. However, because it does not hold local licenses in Kenya, it processes transactions through a Flutterwave wallet which it has used since 2022. Kenyan court documents showed that Marasoft was one of the fintechs that deposited over $55 million into Flutterwave in 2022.
“Marasoft Pay is not a partner of Flutterwave but a customer. It was a business that processed payments through Flutterwave,” Flutterwave told TechCabal. Smaller fintechs typically process payments through licensed fintechs, as banks do not onboard unlicensed fintechs.
The series of unfortunate events began on October 16, 2024, when a glitch allowed Marasoft access to more funds than it had in the wallet, enabling the company to withdraw over ₦84 million ($54,000). According to transaction records seen by TechCabal, CEO Marakwe-Ogu initiated 102 withdrawals from his Marasoft account within 12 hours, each linked to his phone number and bank verification number (BVN).
The timing of the glitch could not have been more fortuitous: it came a week after employees stopped working due to growing frustration over unpaid salaries. While the company paused operations on October 10, it continued to process transactions.
Between October 16 and 17, Marakwe-Ogu paid ₦35 million in overdue salaries directly from the Flutterwave wallet. In a WhatsApp chat with employees seen by TechCabal, Marakwe-Ogu admitted to using his company account to pay salaries after employees noticed that the payments did not come from the human resources account.
Employees were right to be worried. Days after receiving salary payments, their accounts were frozen, and over 40 workers began a legal battle to unfreeze their funds.
“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,” read an email from a senior customer experience associate at Flutterwave to a former Marasoft employee.
After paying employees from the Flutterwave wallet, Marakwe-Ogu transferred ₦49 million to various accounts through payment processors like Transact Pay, a European fintech that generates virtual accounts, to a VFD Bank account he controlled, complicating retrieval efforts, according to account statements seen by TechCabal.
A week later, on October 24, TransactPay sent a recall request for ten transactions worth ₦19.3 million, copying former Marasoft employees. By then, several Marasoft employees’ accounts were frozen, and many were left scrambling for answers.
While Marakwe-Ogu continued to tell employees that the restrictions were a mistake and would be lifted, he agreed to a five-month repayment plan with Flutterwave expiring in February 2025, a former employee with direct knowledge of the matter said. Flutterwave declined to comment on the repayment plan, citing confidentiality.
“It went from a situation where we thought the salary payment was a temporary issue to one where it was clear this was deliberate,” said one former senior employee who asked not to be named discussing an ongoing issue.
Marakwe-Ogu also requested a recall of the salaries through the Nigerian Inter-Bank Settlement Scheme (NIBSS) using Marasoft, an email seen by TechCabal showed. By November, it became clear that the situation was worsening, and employees began resigning. As the employees pushed for answers, he removed them from the company’s WhatsApp group and stopped taking their calls, complicating their efforts to get the restrictions lifted.
“People believed in the company’s mission and endured two months of delayed payments. But this time, it became clear that it wasn’t just a minor issue—it was deliberate,” a former senior employee who asked not to be named for fear of reprisals told TechCabal.
The fallout from the incident has been painful. One employee, whose account was blocked, was forced to borrow money from her father to refund her co-contributors in an esusu after her funds were frozen.
“I was left in a very difficult situation. It was stressful for both my father and me,” she told TechCabal, asking not to be named so she could speak freely.
Marasoft resumed operations in January and at least eight employees have returned to the fintech despite the frozen accounts and owed salaries.
Marakwe-Ogu did not respond to requests for comments.
Source: Tech Cabal
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