Philippine Fintech Startup PayMongo’s CEO Takes Leave, Breaks Silence About Company’s Investigation

PayMongo announced Monday that CEO and co-founder Francis Plaza is stepping away from the Philippine fintech startup for at least a week amid a company investigation into a sexual harassment allegation against the 29-year-old. Plaza denies the claim.

The company’s board of directors, led by co-founder and former chief commercial officer Luis Sia, approved Plaza’s voluntary leave for the duration of the investigation. The complaint, lodged by a former employee on August 11, is being considered by an independent committee. Meanwhile, COO Isabel Ridad will serve as acting CEO.

“​The company has taken active steps to address the complaint filed by a former employee against Francis Plaza,” PayMongo said in a statement to Forbes Asia on Monday. “Our Committee on Decorum and Investigations is in the midst of its investigation into the matter, ensuring that it will be credible, independent and fair to all concerned.”

PayMongo’s statement comes almost a week after the Tech in Asia news outlet reported that the company is investigating a sexual harassment claim against Plaza. “Unfortunately, I cannot comment on the specifics while the investigation is ongoing, but what I can say right now is that I steadfastly deny many of the baseless and false allegations made against me,” Plaza said in a video interview Tuesday. “What the allegations have done is unfairly misrepresent not only me, but the processes and procedures of the company.”

According to the Tech in Asia report, citing an anonymous source, Plaza confessed her romantic feelings for a younger male employee and offered him a promotion to “people manager”, provided the two enter into a romantic relationship. The offer was rescinded after Plaza’s overtures were rejected, and the employee left PayMongo in February, Tech in Asia reported.

In his first interview since the publication of the Tech in Asia article, Plaza says the company’s investigation “will lead to the truth” and expects the process to last until the end of the month. “I look forward to resuming my job as CEO,” he says.

“I don’t see this as just a job for me,” adds Plaza. “More importantly, I am a shareholder in the company … I will always think of what is best for the company above any personality, including myself.”

Plaza co-founded PayMongo with Sia, Jamie Hing III and Edwin Lacierda. Sia left the company in March, but remains chairman of the board. Plaza denied Tech in Asia’s report that Sia’s departure was related to the sexual harassment allegation. Lacierda, who served as PayMongo’s chief commercial officer, left the company in mid-2021. Plaza told Tech in Asia that Lacierda, a former secretary of state and presidential spokesperson under the late President Benigno Aquino III, left PayMongo to focus on public service.

Backed by the likes of PayPal founder Peter Thiel, Stripe and Y Combinator, PayMongo allows merchants to send payment links to customers, who can pay with a variety of options, including credit cards and e-wallets.

The startup raised $31 million in a Series B round in February, bringing its total funding to around $46 million. Following its $12 million Series A round led by Stripe in 2020, PayMongo said it tripled its merchant base to over 10,000 businesses and quadrupled monthly transaction volumes.

Recent high-level departures were not limited to co-founders. Jay Olos, PayMongo’s former CFO, left the company in May. According to the Tech in Asia report, Olos was kicked out after allegations of sexual harassment were made against him by two employees. Plaza told Tech in Asia that an internal audit also found financial irregularities by Olos.

Olos rejected the claim in a LinkedIn post on Monday. “There are no financial irregularities,” he said in the post. “It’s just that some people don’t fully understand the accounting, the scope of work, the rights and obligations of the CFO ultimately to the shareholders. In my 17 years as a finance professional, I never stole from any company I worked for because I value so much on integrity.”

In response to the allegations of sexual harassment, Olos wrote: “If you know me personally and we are close, you know that I am a conversational partner. I talk a lot and can be tactless at times. I ask a lot of questions, give a lot of input and insight, and make jokes and make fun of myself (especially about my face, height, and receding hairline). Sometimes these jokes include green jokes or adult jokes that I only throw out to the people I think I’m close to. It’s my way of building relationships in an external work setting and showing the human side of me (as a financier, I’m tough, they say). Unfortunately, I learned that some female colleagues did not find it funny especially in a WFH setup when conversations and chats are subject to interpretation. A lesson I have learned, and I take responsibility for it. I apologize to the people I have offended. Rest assured that I will continue to work on improving myself in that area.”

Plaza says the employees who filed harassment complaints against Olos remained with PayMongo and “appreciated the swift steps taken.”