eTranzact International Plc has announced that its managing director and some other members of the executive board will step down after an alleged N11 billion fraud happened under their watch.

In a statement released on Tuesday, the company said the decision was of its board’s volition and not an order of the Central Bank of Nigeria.

There had been reports that Michael Obasuyi, managing director of Smart Microsystems, perpetuated an N11 billion fraud using eTranzact’s platform.

“Valentine Obi, managing director of the company will be stepping down and Niyi Toluwalope will be taking over as the managing director in an acting capacity. Until his appointment, Niyi Toluwalope was the chief financial officer, a position he has held since 2011.

“Other executive positions affected by the management changes are executive directors; Sullivan Akala and Ike Eze, chief technology officer – Richard Omoniyi and head of operations – Kehinde Segun.

“eTranzact is aware of a recent media publication about these management changes and wishes to announce that the changes are strictly eTranzact board’s decision.

“In addition, we want to categorically state that there was no fraud in eTranzact International Plc, however, a merchant used the company’s interface with a bank to perpetrate fraud.

“The eTranzact executives resigned honorably because they have the responsibility for governance in the company. Also, there is no truth about PricewaterhouseCoopers (PwC) or Ernst & Young reviewing the accounts of the company. eTranzact retains PwC from time to time for various technology-related assignments and none has to do with reviewing the company’s accounts.”

The company provides electronic solutions for transaction settlements.

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