Afrigather On Thursday, Leatherback, a cross-border startup based in 2019, introduced that Ibrahim Ibitade, co-founder and CEO, was stepping down. In his place, Toni Campbell was named interim CEO, whereas lead investor and cofounder Dayo Amzat was named non-executive director.
At the very best of instances, the exit of a cofounder from a enterprise will elevate flags. For Leatherback, it was particularly curious given its eventful previous yr.
In November 2023, the corporate was below the radar after authorities claimed {that a} transport firm, SDQ Facilitators, had used a Leatherback account to defraud unknown individuals of about $10 million.
There have been studies that Leatherback’s Nigerian financial institution accounts have been blocked, and in a little bit of the dramatic, the Financial and Monetary Crimes Fee (EFCC) declared Ibitade wished.
Individuals with information of the matter stated the EFCC has since rescinded that discover, and Ibitade has filed a human rights go well with in opposition to the fee. Leatherback has additionally taken SDQ Facilitators to courtroom to get well cash on behalf of the victims.
Towards this backdrop of occasions and Leatherback’s terse assertion saying Ibitade’s exit, it looks like there’s extra to this variation of management than meets the attention. Ibrahim Ibitade spoke to TechCabal on main Leatherback, the incident with the EFCC, and the misalignment of targets that necessitated his exit.
(This interview has been evenly edited for readability)
TC: On Thursday, Leatherback introduced you stepped down from the corporate. What drove your determination to step away from the enterprise?
I wish to begin a household. I ought to be married now with youngsters, however I’m not. My dream and targets of being a household man don’t align with the necessities of the job proper now. It’s not one thing that I can juggle.
I’ve all the time spoken to individuals who know me, and I’ve shared that I wish to cease doing something main earlier than I’m 35 and be capable of transfer on to dealing with issues alone.
Finally, it was time. In 5 years, we’ve completed quite a bit and achieved quite a bit collectively within the enterprise. I’m leaving primarily to maneuver on to the following part of life.
TC: Did a disagreement together with your main investor play an element in your determination?
Companions disagree.
To start with, Zedcrest is a serious investor in Leatherback, however I’m nonetheless a big shareholder.
However there are occasions when disagreements occur, and after a number of misalignments of targets and visions of each events, I figured that it was time.
I had already steadied the ship to a big extent. The ship wants a really completely different trajectory proper now, and I needed to simply make that call to step down so I can concentrate on different issues and naturally, help them in each approach they’ll with progress and improvement.
TC: However it raises some bells when an investor steps in
I do know it raises some bells, however to start with, there was no stepping in. Since 2022, Dayo Amzat has held Friday morning administration conferences with the complete Leatherback staff, and that was based mostly on my deferring to him to information and supply his experience. Zedcrest has all the time been closely concerned in the complete course of, not everyday, however no less than in making strategic selections.
Zedcrest has all the time been on the Leatherback board, whereas Dayo has been a board advisor and has not missed one board assembly for the UK board within the final three years. We’ve been working collectively.
There tends to be disagreement or misalignments. All these elements culminating collectively made me determine it’s time, and I’ve completed my half. This dream is one which I’ve all the time had; I’ve pushed it to a specific stage, and it’s time to maneuver on. So it’s nothing important or main.
TC: Let’s segue into the problem with SDQ Facilitators. Was Leatherback’s Nigerian checking account blocked in relation to that incident?
Leatherback’s accounts weren’t blocked; that’s the actual fact. Our accounts are nonetheless purposeful.
TC: Had been Leatherback’s accounts blocked on the time or at any time?
Leatherback has fairly a number of accounts in several nations. None of our accounts in several nations have been affected besides Nigeria. And that was only one or two of a few of our financial institution accounts in Nigeria. So we had a few these accounts that the EFCC positioned a lien on for a day or two, they usually raised it after a day or two and there may be proof to show that.
However that’s only one or two of our accounts in Nigeria, and people are those that have been affected. None of our accounts in some other nation was affected in any approach or type in any respect. None of them.
TC: There have been claims that they have been transactions that Leatherback couldn’t account for.
Transactions will not be lacking in Leatherback. And I imply this 100%.
To refer once more to among the points that we confronted at Leatherback. The extent of what we confronted in Leatherback are conditions the place perhaps a consumer receives fraudulent funds of their accounts, and we’re mandated by regulation, to put a lien on that consumer’s account.
Generally, the consumer goes on Instagram or Twitter and LinkedIn and begins speaking about it as a result of they don’t perceive that legally when your account receives fraudulent transactions, we’re mandated to carry on to the funds when the opposite financial institution has raised a question and never take any motion.
We are able to’t even inform you as a result of it’s tipping off, and tipping off is prohibited, and we could be held accountable.
In order that interval the place we will’t actually inform individuals is what makes individuals begin logging on and saying various things. And that’s the extent of what you can see.
A few of these feedback that you just stated now sound like among the issues that these individuals have stated. It’s individuals’s cash, and a few of them will elevate spurious queries. Some individuals will contain the CBN and the EFCC; sadly, we will’t do something.
We’ve got to only be quiet, watch, pay attention, and wait until the investigation is finished by the opposite financial institution in order that we will transfer ahead. I’ll inform you one thing that simply occurred within the UK.
The ABP fraud regulation is that if I ship cash from my checking account at this time to a different individual in one other financial institution, and that individual defrauds me. The regulation proper now within the UK is that if I elevate a question, each my financial institution and the financial institution that I ship that cash to that the fraudster has a checking account in, should reimburse me 50% apiece of that cash. Whether or not they’re liable or not, whether or not it’s my fault or not, it doesn’t matter.
There’s loads of legal responsibility that falls on the banks on this state of affairs that many individuals don’t know.
TC: What’s the standing of the incident with SDQ Facilitators?
The SDQ matter is in courtroom. There’s an interpleader movement within the courtroom proper now the place Leatherback has opened up and completed its half and instructed the EFCC, “that is what we’ve been capable of get well out of those transactions, as a result of we did our half as a regulated group.” We reached out to completely different individuals, and completely different banks, and tried to recall some transactions.
We’ve been capable of recall a determine, however I can’t launch it proper now. So the matter is in courtroom, and Muiz Banire represents us. Our legal professionals have said to the EFCC the quantity that we’ve been capable of get well.
We’re not liable on this matter, however we’re telling the courts to determine tips on how to distribute the cash amongst the individuals who have misplaced cash on this state of affairs.
Those that really feel that they’re celebration to it may possibly come and be a part of as events to the matter.
And in order that’s in courtroom. If we had something to cover, we might not be in courtroom. And we’re those who instituted the motion. We went to the courtroom as a result of we didn’t desire a state of affairs whereby some individuals say we obtained this, we didn’t get this. That’s on that. That’s the place SDQ is correct now.
I’m not conscious of something or any occasion the place somebody will say their transaction is lacking with Leatherback, or the transaction was lacking in relation to the SDQ matter, and it has not been attended to.
There’s nothing of such proper now past the scope of those two eventualities that I’ve given, and there’s proof to indicate that.
TC: How did Leatherback become involved within the incident regarding SDQ Facilitators?
Leatherback supplies multi-currency accounts, native foreign money accounts in fairly numerous nations. We provide collections accounts to individuals who wish to make funds throughout a number of jurisdictions.
What occurred on this state of affairs is Leatherback issued an account to any individual, an organization known as SDQ Facilitators, a transport firm. When Leatherback issued an account to them, it was absolutely KYC, absolutely KYB, every part is correctly structured, and we want the identical requirements that we do in each different nation is what we went by means of with these guys.
We issued them an NGN account, a USD account, additionally a GBP account. They have been gathering funds of their NGN account and exchanging it into different currencies on Leatherback and paying out.
On this state of affairs, Leatherback is sort of a financial institution, form of. The account is in your identify, it’s not in Leatherback’s identify. So Leatherback can’t log into your account. You’ve gotten your personal username, password, and your cellular utility. The identical approach a full financial institution will provide you with, that’s what you will have. And whenever you’re doing transfers, it doesn’t present Leatherback’s identify. It reveals your identify.
SDQ Facilitators was doing transactions on Leatherback for fairly some time like each different individual.
Leatherback has fairly numerous customers globally, so that they have been doing transactions like each different individual. We observed that at one level, some individuals reached out to us and stated they gave one in every of our shoppers cash, and the consumer has not delivered the corresponding foreign money to them.
Now, at that time, we knew solely SDQ. When the EFCC reached out to us, we printed over 10,000 pages of paperwork regarding SDQ transactions. That reveals you the extent, and I’m not exaggerating this 10,000- that reveals you the extent of KYC, KYB, and extra info that we request from our customers. I imply, from customers like SDQ, once they even obtain cash into their Naira account in Nigeria, Leatherback goes a step additional to ask them, Why are you receiving cash into your account?
We collected the required info and gave it to the EFCC. The EFCC contacted us and stated some individuals petitioned them. These individuals stated they paid SDQ Naira into SDQ’s Leatherback account, and SDQ didn’t ship the corresponding foreign money.
The EFCC invited us, SDQ, who was at massive, and each different individual. We shared all the data with them and allow them to know that we’re a regulated establishment. That is the data we’ve on these transactions. We’ve completed our half.
We’re simply an account supplier, and none of those funds sit with us. Exchanges have been completed and we gave the corresponding foreign money, and these individuals paid out. Our personal cash isn’t concerned in any respect. None of our funds are concerned on this matter.
So if somebody gave SDQ cash, we don’t know why they did so or why they’re concerned.
You possibly can’t arrest the Entry Financial institution CEO or Union Financial institution CEO as a result of I defrauded different individuals with my Union Checking account. It doesn’t work that approach.
TC: Speak to us about being declared wished by the EFCC
Bfore I knew it, the EFCC declared me wished, and I got here right down to Nigeria instantly. Everyone seems to be conscious of that. I went to the EFCC headquarters and their department in Lagos.
I instituted motion in opposition to the EFCC. I went so far as anybody may go, and in the end, they have been capable of pull the discover down.
I’ve a letter from the EFCC stating that they notified all the opposite brokers that I’m now not on the watch record and pulled it down. I even have a letter from the EFCC to the DSS and immigration. That was simply an aggressive tactic. Sadly, at that time, some individuals have been telling the EFCC, from my understanding, that Ibrahim may make this simple.
As a result of individuals want their cash at that time, they overlook that it is a company group, and it is a company matter. So go to Ibrahim, he can kind him out. He has cash. He can do is put him below strain, lock him up, and all.
TC: How a lot did SDQ Facilitators take from these individuals?
What you’ll discover, based mostly on our personal data, might be $8-10 million. Leatherback was capable of get well a part of it.
Primarily based on that, the EFCC declared me wished. I went down, after which they stated, the explanation why they declared me wished was as a result of I didn’t come to them.
And I stated, however my legal professionals have been coming to you, and my compliance managers have been right here. My total staff has been right here so why do you want me? That’s after I figured that there have been some aggressive ways. So I spoke to them, I used to be in Nigeria for a few weeks, and Alhamdulillah, we have been capable of get the submit down.
Since that point, we additionally began working with the EFCC to attempt to get well a few of these funds. I must make clear the half we performed within the restoration: our cash isn’t concerned right here, no one gave us cash. Individuals gave SDQ individuals.
On some transactions, we have been capable of provoke recall or tracers to seek out out the place is that this cash, and even place flags on these monies the place they’re, to see what could be recovered.
We labored with the EFCC to see what we may get well. And we’ve gone to the courtroom to say, “Properly, courtroom, at this level, it appears like that is all we will get well so we would like you to advise us on how individuals will cut up these funds accordingly.”
Leatherback funds weren’t concerned in SDQ points. It was a tricky interval for Leatherback, little question, however we pulled out of it. We’re nonetheless right here. We’re not going anyplace.
None of this stuff occurring or me stepping and has something to do with SDQ, this isn’t a state of affairs of an investor stepping in or one thing, despite the fact that there are individuals.
TC: Was the EFCC difficulty and the optics of it a distraction nonetheless? And what do you consider the truth that this appears like an investor stepped in?
To start with, the EFCC difficulty made me a tricky individual. Very daunting issues occurred to me throughout that interval that I can’t even begin explaining proper now, however these issues made me stronger. The SDQ difficulty is sort of a yr previous now, and we’re right here.
Past that, for the enterprise, it has come to the purpose the place I wish to take a step again and let another person drive the reins to a specific level.
On the finish of the day, many founders have points. The Zedcrest relationship with Ibrahim isn’t an investor-type relationship alone. We’re cofounders.
Dayo Amzat and I are co-founders of the enterprise. The journey has been topsy-turvy, fairly numerous issues.
I’ll say conveniently and authoritatively that of all of the portfolio firms that Zedcrest has at this time, Leatherback might be the one one surviving and nonetheless flying excessive and really quick.
It’s been good, it’s been unhealthy, ups and downs and all.
On the finish of the day, for buyers, I don’t assume there may be something shaky to think about.
I believe it’s extra of a transition occurring. The transition may not have occurred the best way we anticipated it to, but it surely’s nonetheless ongoing. After which there are issues that may nonetheless occur to make sure that issues are completed later and that, on the finish of the day, it would circulation easily.
So I do know that Leatherback will quickly actively begin a few bulletins that may present what the following batch is, and likewise loads of info can even come out from me to indicate what I’m centered on subsequent. Possibly I’ll be seen on a tomato farm or one thing.
If SDQ didn’t make me step down from Leatherback a yr in the past, and belief me, SDQ difficulty was very powerful. I can’t think about for those who can relate to what it means so that you can be declared wished. I used to be simply 31 at the moment and it was powerful for me.
It affected my household. If such important factor didn’t make me step down at that time limit. I imply, belief me, each different factor that could possibly be stated to have occurred, both learn disagreement or one thing is meagre or paltry to what’s going to affect me to correctly step down.
TC: However some individuals will argue that rifts construct up over time
I alluded to that. There are various elements, and as I discussed at first of this dialog, misalignment of targets issues. I’ve completed this for 5 years, so it’s a query of whether or not my targets align with these of my cofounder, the board, and the enterprise.
I’ll offer you an instance. My objective is perhaps that Leatherback must go on an aggressive fundraising drive as a result of companies like ours have completed this and that, however the enterprise objective is perhaps that, you realize what? No, let’s nonetheless maintain down, and let’s maintain constructing natural proper now.
So it could possibly be completely different. However for me, undoubtedly, like I discussed earlier, we’re additionally on the level the place there’s a misalignment of some targets in there. However that’s not sufficient. It’s loads of issues; I even talked about needing to get married. I want to take action many issues.
In the event you ask people who find themselves near me, everyone is aware of I’ve all the time stated it. I wish to be I wish to cease by 35. I actually wish to cease by 35. I’ve all the time wished to.
I’m a staunch Muslim. I simply obtained again from Umrah two days in the past. I’ve so many desires, so many issues that I wish to do Islamically. 5 years is sufficient.
The following objective, the following steps, are issues that another person will drive and take. And I’m simply saying that, sure, there are issues, don’t get me improper, however these issues will not be sufficient to make me again down if the SDQ difficulty didn’t make it again down.
TC: Is Toni Campbell, the interim CEO, an investor?
There are solely two buyers in Leatherback at this time: Zedcrest and I.
Toni Campbell isn’t an investor. He’s an interim CEO who was appointed and has no shares in Leatherback.
There are nonetheless many issues that may occur, selections that will probably be made steadily to get Leatherback to a degree the place a substantive CEO could also be introduced, and lots of different issues.
Toni Campbell’s appointment isn’t any technique to place Leatherback in a approach that we will go and lift funds from anyone. It was a choice for somebody who’s ok to no less than step into the sneakers for now.
TC: How did the board deal with your determination to step down?
Feelings will go round. It’s not attainable for me to step down with out response. If I instructed you my cofounder took it properly, that may be a lie. It’s the toughest factor I’ve ever needed to do, but it surely’s a private determination they usually undoubtedly weren’t blissful.
There was some back-and-forth on this earlier than the ultimate determination was made. I keep in mind a dialog with the board the place they stated they wouldn’t settle for my resignation.
Finally, it was one thing I made a decision to do.
