The base excuse was that they were hacked. How long can a company hide behind such justifications?
Bento Africa, a Nigerian HR-tech startup, founded in 2019 by Ebun Okubanjo and Chidozie Okonkwo, is at the center of a controversy over allegations of fraudulent practices, including teeming and leading schemes, failure to remit taxes, and pension contributions on behalf of clients. Investigations by the Lagos Inland Revenue Service (LIRS) and the Economic and Financial Crimes Commission (EFCC) have deepened public scrutiny, with stakeholders questioning the company’s credibility and operational ethics.
This isn’t the first time such claims have surfaced. Attempts to expose these issues in the past were reportedly suppressed, but as the situation escalates, it seems Bento can no longer escape accountability.
The Allegations
Bento is accused of mismanaging client funds by failing to remit statutory payments while issuing fraudulent tax receipts to cover discrepancies. Former clients and employees have alleged that the company used operational glitches as a shield to mask intentional delays, leaving businesses vulnerable to legal liabilities.
The resurfacing of Bento Africa’s alleged fraudulent practices gained momentum after Akintunde Sultan, co-founder of AltSchool, took to X (formerly Twitter) to share his experience. In a widely shared post, Sultan warned Nigerian startups, writing:
“If you’re a Nigerian startup using @bento_africa, please go to FIRS and confirm that they’re remitting all the PAYE they’re collecting from you. We’ve stopped using them, but for the period we were using them, they were remitting ₦100 and faking transaction payments to FIRS.”
This statement reignited public scrutiny, with many startups re-evaluating their partnerships with Bento and voicing their concerns.
Other User Reactions
The controversy has sparked significant backlash on social media, with former users sharing negative experiences:
- One user emphasized, “Do NOT use Bento. Again, I repeat, do NOT use Bento. Used them for about two years and we saw premium challenges!”
- Another noted, “The base excuse was that they were hacked. How long can a company hide behind such justifications?”
Bento has positioned itself as a victim of Nigeria’s outdated systems, claiming that manual processes and lack of API integrations with tax and pension authorities contribute to delays. However, critics argue that the company has failed to maintain transparency and adequately address client concerns.
Reputational Damage and Client Exodus
Bento has faced a sharp decline in trust from clients, particularly within Nigeria’s tech sector. Some high-profile firms have terminated their contracts with the company, citing concerns over financial transparency and delayed payments.
Okubanjo has downplayed these departures, describing Bento’s strategic pivot towards traditional businesses and SMEs as deliberate. He claims SMEs are more cost-effective clients, requiring fewer features and being less vulnerable to economic downturns.
Despite these claims, Bento’s reputation remains tarnished. The controversy marks the second time the company’s leadership has been scrutinized in recent years, following accusations of workplace toxicity against Okubanjo in 2023.
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