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    Bento CEO’s ‘Chaotic’ Run Comes to an End Amidst Tax Allegations and Client Exodus

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    Ebun Okubanjo, the chief executive of Bento Africa, a Nigerian HR technology startup, has resigned amid mounting scrutiny from regulators and a wave of client departures. His exit follows allegations of tax evasion and mismanagement, casting a shadow over the company and raising concerns about trust within Nigeria’s burgeoning tech ecosystem.

    Founded in 2019, Bento Africa offered payroll, compliance, and employee management services to businesses across the continent. However, the company has recently become the subject of investigations by the Lagos Inland Revenue Service (LIRS) and the Economic and Financial Crimes Commission (EFCC). These investigations centre on allegations that Bento Africa failed to remit taxes and pension contributions on behalf of its clients.

    In a confidential email to investors announcing his resignation, Mr. Okubanjo alluded to the challenges of operating in Nigeria’s complex regulatory environment. “If Africa adopts the Western style of taxation and remittances — these companies are gold mines,” he wrote. “I use Gusto in the U.S. not because I want to, but because I have to. Until that happens — scale will be a challenge.” He also confirmed that he was relinquishing his equity and debt holdings in the company.

    The allegations against Bento Africa have triggered a significant loss of clients, with prominent firms such as Moniepoint, Paystack, Kobo360, and Bamboo reportedly severing ties this year. Several businesses have publicly detailed their negative experiences with the startup.

    Rotimi Olawale, founder of YouthHubAfrica.org, claimed that Bento Africa’s payment delays and failure to remit taxes to the FCTIRS resulted in a ₦1 million fine for his organization. He alleged that his attempts to communicate with Mr. Okubanjo about the matter were ignored. Fuelmetrics, a fuel station inventory management company, claims to have incurred ₦50 million in unpaid taxes and pension contributions due to Bento’s alleged negligence. Akintunde Sultan, co-founder of the edtech startup AltSchool, accused Bento of forging tax receipts and remitting minimal sums despite collecting larger amounts from clients.

    While Mr. Okubanjo acknowledged receiving complaints from the LIRS and confirmed the company was working on a remediation plan, he downplayed the scale of the issue. He described affected clients as “a very small percentage… who happen to be very vocal.” He declined to provide specific figures but attributed the problems to the intricacies of Nigeria’s tax and pension systems, suggesting that a “zero percent error rate is hard, maybe impossible.” He asserted that discrepancies accounted for “less than 1%” of processed transactions.

    This is not the first time Mr. Okubanjo’s leadership has come under scrutiny. In 2022, he was removed from all “people-related” decisions after a report detailed his demeaning treatment of staff. The company’s investors launched an investigation into Bento’s workplace culture and reviewed its human resources practices. Mr. Okubanjo apologized for his behavior at the time.

    The Bento Africa saga raises broader questions about trust and accountability within the African startup ecosystem. The case highlights the vulnerability of startups relying on partnerships and the potential consequences when such collaborations break down. With inter-startup partnerships forming a significant part of the Nigerian tech landscape, the fallout from Bento Africa’s alleged misconduct could have far-reaching implications for the sector’s reputation and future collaborations. Bento has paused transactions following his exit from the company, amid ongoing investigations by the LIRS and EFCC. Mr. Okunbanjo has also announced to investors his new venture, Ada AI, an AI-powered sales assistant.

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