Wale Igbintade
Kudiwave Technologies Nigeria Limited yesterday protested at the Force Headquarters in Abuja over the alleged movement of N750.34 million from its PalmPay account, demanding an independent investigation by the Inspector-General of Police, Olatunji Disu.
The protesters, comprising staff and supporters of the company, carried placards with inscriptions including: “IG save our business,” “PalmPay and PSFU return our N750m,” “Kudiwave is not a fraudulent organisation,” and “Stop extortion of fintech companies.”
They also submitted a petition to the IG, alleging that the Police Special Fraud Unit (PSFU), Ikoyi, Lagos, and PalmPay were involved in the restriction and subsequent movement of the funds.
The protest followed a dispute over N750,339,399.99 allegedly transferred from Kudiwave’s PalmPay account while the company was challenging a court order relating to the funds.
Addressing reporters, Kudiwave’s Company Secretary, Prince Oko Kalu, said the company’s account had been placed on a Post-No-Debit (PND) restriction since April, preventing it from accessing its funds.
Kalu said the company later traced the restriction to the PSFU and approached the unit for clarification.
He alleged that a police officer demanded N50 million for lifting the restriction.
He said an intermediary subsequently requested a lower amount, following which N5 million was allegedly paid.
The allegations could not be independently verified.
Kalu said the restriction nevertheless remained on the account.
He said the company subsequently learnt that a Federal High Court order had been obtained on June 29 directing the movement of funds in the account to a designated police account.
Kudiwave challenged the order and, according to Kalu, filed an application for a stay of execution on July 3.
He said the court subsequently set aside, vacated and discharged the June 29 order on July 22 and directed the removal of restrictions placed on the company’s account.
However, Kalu said Kudiwave discovered that N750,339,399.99 had been transferred from the account on July 15, before the court delivered its ruling.
“Now we came with the order to ask PalmPay to release our account so that we’ll resume our business, only to realise that the entire fund in our account up to N750,339,399.99 was moved,” he said.
Kalu alleged that Kudiwave’s transaction records showed that the money was transferred to an Access Bank business account, rather than the police exhibit account referred to in the earlier court order.
He urged the police to investigate who authorised the transfer, where the money was sent and who currently has custody of it.
PalmPay, however, disputed Kudiwave’s account of the transaction.
In a response signed by its Legal Counsel, Caleb Aluya, PalmPay said the transfer was made strictly in compliance with the Federal High Court’s June 29 order, which it maintained was valid, binding and enforceable when the transaction was effected.
PalmPay also disputed Kudiwave’s reliance on an earlier letter in which it had indicated that it considered it appropriate to await the determination of the pending application before taking further steps.
According to the fintech company, the letter was intended to mitigate the consequences of non-compliance with the court order and allow Kudiwave an opportunity to obtain a valid order staying or varying the substantive order.
PalmPay said the communication did not amount to an admission that its obligation to comply with the existing court order had been suspended.
It further stated that Kudiwave was covered by an earlier ex-parte order and that PalmPay was expressly listed as a respondent.
“PalmPay therefore acted strictly in compliance with the express terms of the Court’s Order and not on its own initiative,” the company said.
On the N750.34 million debit, PalmPay said it had consistently complied with valid court orders served on it and would continue to do so.
The company added that following the July 22 ruling, it formally engaged the Nigeria Police Force and requested compliance with the court’s decision.
PalmPay maintained that the funds were transferred to the designated Police Recovery Account pursuant to the June 29 order and that any further action required to implement the July 22 ruling should be directed to the police, which it described as the custodian of the funds.
The position has become the central point of the dispute, with Kudiwave alleging that its records indicate that the money was transferred to an Access Bank business account, while PalmPay maintains that the funds were transferred to the designated police account.
Kudiwave has also rejected suggestions that it did not have a verifiable business address.
Kalu said PalmPay representatives had previously visited the company’s office and held meetings there.
“How will you open an account to a customer that you have no KYC of the customer?” he asked, referring to the Know Your Customer requirements for account holders.
Kalu said Kudiwave had submitted four petitions to the IGP over the matter and appealed for an independent investigation.
“We are here to create awareness. Let the public hear us. Let the IGP come out from his seat. Let him come and look into our matter, appoint independent investigation over this matter,” he said.
Responding to the protesters, the Commissioner of Police in charge of Federal Operations, Wilson Akpan, assured them that their petition would be considered.
Akpan, who addressed the demonstrators outside the Force Headquarters, said the matter would be critically examined by the police authorities.
“This matter you have brought before the head of the force will be critically looked into and solved,” he said.
He added: “The IG, Olatunji Disu, is a well-vested police investigator. Don’t panic and don’t be afraid. Whatever is due to you, you will get it. Just have that at the back of your mind.”
The protesters later proceeded to the Central Bank of Nigeria, where they submitted a copy of the petition and sought the regulator’s intervention.
The company’s protest has therefore brought renewed attention to the unresolved status of the N750.34 million following the July 22 court ruling.
While Kudiwave is demanding the return of the funds and an independent investigation into their movement, PalmPay maintains that it acted pursuant to a valid court order and that responsibility for any further action concerning the funds rests with the police.