By Eric Elezuo

Dozy Mmobuosi is a renowned entrepreneur, who established Tingo Mobile in 2001, with a mission to bring mobile technology and Fintech solutions to underserved rural communities in Nigeria. This singular act marked the beginning of his journey towards revolutionising the access and utilisation of technology in the Nigeria’s remote areas. The entrepreneur’s visionary drive has continued to unfold even as he founded Tingo Inc. in 2015, successfully taking the company public on the OTC Markets Group, signaling its growth and potential in the business landscape.

In January, 2019, Mmobuosi added yet another feather to his cap of entrepreneurial ingenuity by introducing Nwassa, Africa’s pioneering agricultural technology and digital platform, revolutionising the continent’s agri-marketplace with its innovative approach. Nwassa is currently undergoing a major upgrade to make it super efficient.

In February 2023, it was reported that Mmobuosi was close to completing a £90 million takeover of the newly- promoted English football club Sheffield United.

Perhaps the present travails and media trials the Chairman of Tingo Group, Mr. Dozy Mmobuosi, and his organisation are going through at the moment is a ripple effect of his intention to buy and own an A-list English Premiership club.

Ever since the pronouncement, fifth columnists have gone to town, and one objective has been uppermost in their minds – run the man and his business down. It is believed that Tingo’s attacks come under the purview of cases of research executives who misuse corporate trading plans and spoofing – a type of futures market manipulation technique.

That explains the reason a U.S. investment research firm focused on activist short-selling, Hindenburg Research, accused Dozy and his Tingo Group, of all manner of malfeasance. The ” reports” cast aspersions on Tingo’s meteoric rise and impact in mobile phones, food processing, and online food marketplace for farmers primarily located in Nigeria.

Tingo had vehemently denied the allegations, describing them as “misinforming”, stating that they contained numerous errors of fact which Hindenburg intends to profit from as a “short investment” firm.

It is worthy of note that Hindenburg is a Short-selling outfit in the practice of seeking to profit off bets that a stock will fall, and most times their reports are bent on causing ruckus or seek gains unduly, and that has come to the searchlight of the of U.S. prosecutors, who have pledged that there will be more activity by the Justice Department in coming months to curb their menace, according to a report in Reuters.

The medium maintained that “the recent rout in shares of U.S. regional banks brought fresh scrutiny by criminal prosecutors and regulators of short sellers, who had previously come under review in the wake of the “meme stock” craze of 2021.” Avi Perry, the chief of the market integrity team, said at a Practising Law Institute event in New York that Short selling, including via options, is a priority for prosecutors.

“You’ll see some more activity from us involving short sellers sometime in the next few months,” he said.

Reuters reported “that prosecutors and other regulators are looking at short-selling activity in bank shares, which have whipsawed following three bank failures since March.

“Since at least 2021, the Justice Department and the U.S. Securities and Exchange Commission have been investigating potential manipulation by short sellers and hedge funds around the publication of negative research reports.

“The broad probe is an example of the agency’s efforts to use data to root out potential misconduct by traders and to dig more deeply into securities markets.

In the midst of the brouhaha, the Tingo Group, in a bid to restore its image as a profitable and fast growing fintech and agri-fintech company, has engaged White & Case LLP, a leading international law firm, to conduct an independent review and report to its independent directors over the allegations contained in short seller Hindenburg Research report published on June 6, 2023.

Tingo believes that Hindenburg, a self-described short seller, has a disclosed economic incentive to negatively influence its share price with the tainted and warped report.

The Company strongly believes it is in shareholders’ best interests to allow White & Case’s independent review to be carried out unhindered and it is committed to protecting its integrity. As such, the Company intends to make no further comment on Hindenburg’s allegations until the review has been completed.

TINGO’S REBUTTAL

Tingo Group Inc (NASDAQ: TIO), a leading fintech and agri-fintech company, strongly refutes the misleading claims made by Hindenburg Research in their recent report. Hindenburg Research’s allegations are baseless and intended to harm the reputation of Tingo and its esteemed founder and CEO, “Dozy” Mmobuosi. Tingo Group stands by its commitment to transparency, ethical practices, and the pursuit of excellence in all aspects of its business. The company’s growth and achievements are a testament to its dedicated team and visionary leadership.

Hindenburg Research’s claims regarding Dozy Mmobuosi’s background are false and without merit. The Research institution’s allegations regarding Tingo’s food division and its revenue are equally misleading and inaccurate. Tingo Group has established a robust network of partnerships with Nigerian farmers and third-party food processors, enabling it to operate as an intermediary in the food supply chain. The revenue generated by the food division is a result of these collaborations, and Tingo Group is fully committed to ensuring the highest standards of transparency and accuracy in its financial reporting. Regarding the groundbreaking ceremony for Tingo’s planned food processing facility, Hindenburg Research’s claim that the rendering used was from a stock photo website is false. The rendering accurately represents Tingo’s vision for the facility, and any suggestion otherwise is baseless.

Tingo Group is disappointed by Hindenburg Research’s attempt to cast doubt on the company’s agreements and partnerships. The claims made regarding Tingo’s collaboration with Evtec Energy are incorrect. The funding agreement with Evtec is in progress, and any information regarding the company’s financial status should be sought from official sources. The allegations surrounding the acquisition of Tingo Foods and the disappearance of inventory are entirely misleading. The inventory transition was a result of operational adjustments and was properly accounted for in Tingo’s financial statements. Any insinuation of impropriety in this matter is without merit.

Also, Hindenburg Research’s attempts to undermine Tingo Group’s reputation by questioning the existence of farming cooperatives and the company’s mobile services agreement with Airtel are unfounded. Tingo has established fruitful relationships with farming cooperatives, and the mobile services agreement with Airtel has been duly established and adheres to all regulatory requirements. The allegations of Tingo’s Ghana expansion and the functionality of Tingo Mobile’s office are also fallacious and misleading to the public. Tingo Group is committed to expanding its operations in Ghana and ensuring excellent customer service. Any claims suggesting otherwise are unsubstantiated and lack credibility.

Tingo Group strongly denies the allegations surrounding its payment systems, NWASSA platform, and Tingo DMCC’s export business. The company operates with integrity and adheres to all regulatory requirements in its business operations. Hindenburg Research’s claims regarding financial statements are explicitly untrue and deceiving. Tingo Group’s financials are prepared following industry standards and audited by reputable firms. Any minor errors are rectified and do not impact the accuracy and reliability of the financial reports.

Tingo Group is confident in the accuracy and integrity of its financial statements and will continue to work diligently to maintain the trust of its shareholders and stakeholders. The company is open to engaging with regulatory authorities and other relevant parties to address any concerns and provide clarity on its operations and financials. Tingo Group remains focused on its mission to revolutionize the fintech and agri-fintech sectors, and will not be deterred by baseless allegations. The company is committed to upholding the highest standards of corporate governance, transparency, and ethical practices. Tingo Group is confident in its business model, its talented team, and the positive impact it is making in the fintech and agri-fintech industries.

MORE ABOUT TINGO GROUP

Tingo Group, Inc. (NASDAQ: TIO) is a global Fintech and Agri-Fintech group of companies with operations in Africa, Southeast Asia and the Middle East. Tingo Group’s wholly owned subsidiary, Tingo Mobile, is the leading Agri-Fintech company operating in Africa, with a comprehensive portfolio of innovative products, including a ‘device as a service’ smartphone and pre-loaded platform product. As part of its globalization strategy, Tingo Mobile has recently begun to expand internationally and entered into trade partnerships that are contracted to increase the number of subscribed farmers from 9.3 million in 2022 to more than 32 million, providing them with access to services including, among others, the Nwassa ‘seed-to-sale’ marketplace platform, insurance, micro-finance, and mobile phone and data top-up. Tingo Group’s other Tingo business verticals include: TingoPay, a SuperApp in partnership with Visa that offers a wide range of B2C and B2B services including payment services, an e-wallet, foreign exchange and merchant services; Tingo Foods, a food processing business that processes raw foods into finished products such as rice, pasta and noodles; and Tingo DMCC, a commodity trading platform and agricultural commodities export business based out of the Dubai Multi Commodities Center. In addition to its Tingo business verticals, Tingo Group also holds and operates an insurance brokerage platform business in China, with 130+ offices located in China’s cities and major towns; and Magpie Securities, a regulated finance services Fintech business operating out of Hong Kong and Singapore.

AFAN DEFENDS TINGO’S INITIATIVE

Reacting to the controversial Hindenburg research and allegations, the All Farmers Association of Nigeria has confirmed its partnership with Tingo Group, saying that an estimated 11 million of its members have adopted Tingo Mobile’s smartphone and fintech applications.

In a press statement, AFAN clarified that its partnership with Tingo Mobile “is progressing”.

The press statement titled, ‘AFAN announces progress in partnership with Tingo Mobile”, and signed by AFAN’s National President, Dr Farouk Rabiu Mudi, noted that some farmers have started making their produce available for processing to Tingo Foods Plc, an affiliate of Tingo Mobile.

THE STATEMENT READS:

“The All Farmers Association of Nigeria is pleased to announce a noteworthy progression in its lease and service agreement with Tingo Mobile Limited, a significant provider of mobile and fintech solutions in Nigeria.

“As of today, AFAN reports that an estimated 11 million of its members have adopted Tingo Mobile’s smartphone and fintech applications, including the Nwassa platform, as part of their daily operations.

“This update signifies a considerable stride in AFAN’s goal, established on December 14, 2022, to provide its members with access to advanced mobile technology and financial services.

“In addition, some members have started making their produce available for processing to Tingo Foods Plc, an affiliate of Tingo Mobile. This development is a modest but promising step in AFAN’s partnership with the Tingo Group.”

The National President of AFAN also expressed farmers’ pleasure with the progress made, noting that through Tingo, the use of technology had grown among farmers in Nigeria.

“We are encouraged by the progress we have seen through our partnership with Tingo Mobile. The use of digital technology among our members is growing, and some of our farmers have started to engage with Tingo Foods Plc. We remain hopeful for more growth and improved utilisation of the products and services offered by Tingo and its group of companies,” he added.

“This collaboration underscores AFAN’s dedication to modernising agricultural practices and ensuring its members are given the necessary tools to adapt in a rapidly evolving digital landscape.”

AFAN is also excited by the recently signed N3billion loan agreement with Tingo to enhance rice, wheat production and warehousing facilities.

Mmobuosi remains a trailblazing African tech entrepreneur, who has attracted cover features in Forbes Africa and GQ South Africa among a host of others.

And despite the barrage of attacks, he told Reuben Abati on ARISE TV that he will not lose focus, and would conrinue strive to grow his businesses, fly the Nigerian flag proudly and will not give up on acquiring Sheffield United.