Nigerian fintech startup Marasoft has denied allegations that it paid its employees with suspected fraudulent funds, despite former employees coming forward with claims and documentation to support their accusations. The company, founded by Emmanuel Marakwe-Ogu, has attributed the allegations to "disgruntled former employees" spreading "false information", but has failed to provide any evidence to back up its refutation.

The allegations first surfaced on January 25, when TechCabal reported on the claims made by 10 former employees and Flutterwave, the wallet provider from which the funds were allegedly transferred. However, in an interview with TechCabal, Marasoft declined to clarify or provide documentation to support its denials, citing non-disclosure agreements.

Former employees have told TechCabal that their bank accounts remain blocked due to suspected fraudulent funds, and documents seen by TechCabal show that their salaries were "traced to a fraudulent merchant." Despite this, Marasoft has maintained that the allegations are false and resulted from personal grievances. The company's spokesperson did not answer questions about claims that it drew $54,000 from a wallet following a glitch and used that money to pay staff salaries.

In addition to the allegations of fraudulent payments, Marasoft has also denied claims that it paused its operations and reduced its workforce by 25% in January due to "economic reasons." However, documents obtained by TechCabal from two former employees indicate that the startup did indeed pause operations. A letter sent to employees on January 6, 2025, stated that Marasoft Pay would be resuming full operations in the coming days, but with a "streamlined team" focusing on critical roles.

Marasoft has also denied involvement in a 2022 Kenyan court case that named the company as one of the fintechs that deposited over $55 million into Flutterwave. Despite publicly available court documents that name the company, Marasoft's spokesperson dismissed the court documents.

Despite Marasoft's continued denials, former employees stand by their claims, providing documents to support the allegations. While TechCabal has not independently verified the authenticity of these materials, the consistency of former employees' testimonies and the lack of substantial proof from Marasoft raise questions about the company's transparency.

The allegations against Marasoft have significant implications for the fintech industry, particularly in Nigeria, where the company operates. The lack of transparency and accountability in the face of serious allegations raises concerns about the integrity of the company and its ability to operate in a trustworthy manner.

As the situation continues to unfold, it remains to be seen how Marasoft will address the allegations and restore trust with its employees, customers, and the wider fintech community. One thing is clear, however: the company's response to the allegations has only added to the controversy, and it is imperative that Marasoft takes concrete steps to address the concerns and provide transparency into its operations.