Nigerian multi-million dollar Fintech, Paystack, has clarified that it sacked its co-founder and Chief Technology Officer (CTO), Mr. Ezra Olubi as a measure to stem “significant negative reputational damage” to the company.
Mr. Olubi had accused the company of firing him without giving opportunity to clear himself of accusations of sexual misconduct, maintaining that the tweets circulating in the social media which dates back over 10 years do not “ reflect” his conduct and personality. According to him, “I have always, to the best of my ability, conducted myself in a manner that respects everyone’s dignity and safety.”
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However, Paystack management reiterates that the sack of Olubi was in line with his terms of employment and strictly independent of the ongoing third party inquiry into the sexual misconduct allegations against him.
Paystack in a statement stated that, “This has no bearing and is separate from the independent investigation into the allegations of workplace misconduct, which remains ongoing. The review is being led by Aluko and Oyebode, the external law firm appointed by the Board. It is continuing independently, and we will share updates once it is complete.”
It reiterated that the sack of Olubi “ followed due process, maintaining that, “As a regulated company operating in multiple markets, we have a responsibility to act quickly when conduct has the potential to undermine trust.”
Giving a closure to the sack, the company said. “After reviewing the situation, we exercised our right under his contract and followed due process.
The company noted that financial institutions face an additional reputational risk that other non-fintech startups typically do not experience because trust, governance and regulatory confidence are central to their operations. When executives’ actions affect the company’s reputation, the company may face regulatory sanctions, as senior executives at these companies are obligated to maintain appropriate corporate governance structures.
An insider who craved anonymity told TechCabal newspaper that, the conttinued retention of the services of Olubi as a leader in the company raised serious image issues. “This raised questions internally about whether he could continue in a leadership role while the company was facing intense public attention and heightened concern from regulators,” the source said.
