Staff and supporters of Kudiwave Technologies Nigeria Limited yesterday protested at the Police Force Headquarters in Abuja over a dispute involving about N750.3 million allegedly moved from the company’s PalmPay account illegally.
The protesters, dressed in solemn attire and carrying placards, submitted a petition to the Inspector-General of Police, Olatunji Disu, seeking an investigation into the circumstances surrounding the restriction and subsequent movement of funds from the account.
They urged the IG to probe the role played by the Police Special Fraud Unit (PSFU), Ikoyi, Lagos.
PalmPay argued that it only complied with a valid court order, that the funds were thereafter in the custody of the police, and that it did no wrong.
The protesters bore placards with inscriptions, including: “IGP save our business,” “PalmPay and PSFU return our N750m,” “Kudiwave is not a fraudulent organisation,” and “Stop extortion of fintech companies.”
Addressing reporters, Company Secretary of Kudiwave Technologies, 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.
He said the company filed a stay of execution on July 3, challenging the initial order PalmPay claimed to have relied on, and that a judge subsequently set aside the order on July 22.
Kudiwave contends that the money should be returned following the setting aside of the order, which it claims PalmPay and PSFU were yet to comply with.
Kalu said the company traced the restriction on its account to the PSFU and approached the unit for clarification.
According to Kalu, the account remained restricted despite making a certain payment as allegedly demanded.
He said the company subsequently learnt that an order had been obtained on July 1 directing that funds in the account be moved to a police exhibit account.
He said the company encountered another problem when it approached PalmPay with the court ruling.
“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 said the company’s records showed that the money had been transferred to another bank’s business account, rather than the police exhibit account stated in the earlier order.
He questioned the timing and narration of the transaction and urged the IG to investigate the circumstances surrounding the movement of the funds.
Kalu also rejected claims that the company did not have a verifiable business address.
He said PalmPay representatives had previously visited the company’s office and held meetings there.
“How will you open an account for a customer when you have no KYC for the customer?” he asked, referring to the Know Your Customer requirements for account holders.
Kalu said Kudiwave had submitted four petitions to the current 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 an independent investigation into 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 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 IGP, 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 (CBN), where they submitted a copy of the petition and sought the regulator’s intervention in the dispute.
In a response signed by its Legal Counsel, Caleb Aluya, Palmpay said the transfer was made solely in obedience to the Federal High Court’s June 29 order, which it said remained valid, binding and enforceable on July 15.
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 motion before taking further steps.
According to PalmPay, that communication was intended to mitigate the consequences of non-compliance with the court order and to give Kudiwave an opportunity to obtain a valid order staying or varying the substantive order.
PalmPay said its position was not an admission that its obligation to comply with the existing 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 in that order.
“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 N750.36 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 ruling delivered on July 22, it had formally engaged the Nigeria Police Force and requested compliance with the court’s decision.
PalmPay maintained that because the funds were transferred to the designated Police Recovery Account pursuant to the June 29 order, any further steps towards implementing the July 22 ruling should be directed to the police, which it described as the current custodian of the funds.
The dispute took another turn on July 22, when, according to documents supplied by Kudiwave, the Federal High Court set aside, vacated and discharged the June 29 order.
The ruling also directed the removal of restrictions placed on Kudiwave’s account number 8889232516.
PalmPay subsequently acknowledged the court’s decision in a July 22 letter to Kudiwave’s solicitors, stating that the restriction on the account had been lifted.
However, the company did not immediately regain access to the N750.36 million transferred seven days earlier.
This has become the central point of the current dispute.
