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Breaking News: Tingo Group Announces Completion Of Investigation Into Allegations Made Against the Company

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By Michael Effiong

Tingo Group, Inc. (NASDAQ: TIO) (“Tingo” or the “Company”), a profitable and fast growing fintech, agri-fintech and food company has  announced to the international financial market that it has completed the investigation of the allegations made by short seller Hindenburg Research (“Hindenburg”), that relate directly to the Company and its businesses.

At the direction of the Company’s independent directors, independent counsel investigated certain of the Hindenburg allegations and provided the independent directors with an interim report summarizing evidence it had reviewed, along with items requiring further investigation. The Company’s outside counsel then conducted its own investigation into the allegations, which included following up on the items identified by independent counsel. Based on the Company’s outside counsel’s investigation and further investigative work of its own, the Company has concluded it can now provide the following response to the allegations in the Hindenburg report:

  • Agri-Fintech Holdings, Inc. Resignation of Director: Christophe Charlier was a co-Chairman of OTC-listed company, Agri-Fintech Holdings, Inc., which sold Tingo Mobile Limited to the Company on November 30, 2022. Mr. Charlier has never been a member of the Company’s Board of Directors, nor has he been involved in the management of the Company. In his resignation letter, which was filed with the SEC, Mr. Charlier complained only of a lack of communication and teamwork at Agri-Fintech Holdings.
  • Tingo Foods Revenue and Operating Margin: The revenue reported by Tingo Foods in Q1 2023 and its operating margin of 24.8 % has been confirmed.
  • Tingo Foods Business Relationships: During the period from September 2022 to March 31, 2023, Tingo Foods purchased its raw crops from two organizations in Nigeria, including the All Farmers Association of Nigeria (“AFAN”), which delivered the crops to third-party food processors. Tingo Foods then sold the processed food to several large wholesalers in Nigeria.
  • Food Processing Facility:   The construction of the Tingo Foods processing facility in Nigeria is well underway, with food and beverage processing operations expected to commence in Q2 2024. The images and renderings used for the Foods Processing Facility’s groundbreaking ceremony in February 2023 and in early presentational materials were stock images provided by an external marketing company, whereas specific renderings of the actual facility are currently being utilized. The Company has contracts in place with the construction company for the project and with Evtec Energy Plc and TAE Power Solutions Limited for the construction of a solar power plant to power the processing facility. Evtec Energy Plc is a special purpose vehicle for the project, whereas TAE Power Solutions Limited is a part of a multinational group that has been trading for more than 25 years.
  • Tingo Foods Sale of Inventory: The inventory held by Tingo Foods at the time it was purchased by the Company in February 2023 was sold to a customer on March 20, 2023, the proceeds for which were received on June 29, 2023.
  • Tingo Mobile Business Relationships with Farming Organizations: Tingo Mobile leases mobile phones to four co-operatives and farming organizations: the Kebbi (Dala) Multi-Purpose Cooperative Society (“Kebbi”), the Ailoje Royal Farms Multi-Purpose Cooperative (“Ailoje”), the All Farmers Association of Nigeria (“AFAN”), and the Ashanti Investment Trust (“Ashanti”). The two farming cooperatives referenced in the Hindenburg report were Kebbi and Ailoje, to which Tingo Mobile has leased 4.5 million and 4.844 million phones respectively. The relationships with all the co-operatives and farming organizations have been confirmed.
  • Mobile License: Tingo Mobile does not directly provide airtime and data services on the phones it leases to customers, or through its Nwassa platform. Such services are currently provided by a third-party vendor. Tingo Mobile therefore does not require a Mobile License from the Nigerian Communications Commission. This arrangement allows Tingo Mobile’s customers to choose the best network provider for their location from Airtel, MTN, 9 Mobile and Globacom. Tingo Mobile earns a commission on the airtime and data services purchased by its customers, which it receives from its vendor, and which were previously received from Airtel.
  • Tingo Mobile’s Phone Suppliers: Since 2020, Tingo Mobile has purchased mobile phones from two suppliers: UGC Technologies Limited, with which it has had a contractual relationship since December 2020, and Bullitt Mobile, with which it has had a distribution agreement since February 2022.

    Hindenburg contacted a company called UGC Mobile Technologies in the U.S., not Tingo Mobile’s supplier, UGC Technologies Limited, which has offices in Africa and China. Tingo Mobile has purchased almost all its mobile phones from UGC Technologies Limited to date, with only a small purchase of 1,000 units of Caterpillar branded phones from Bullitt Mobile in 2022.

  • Tingo Mobile’s Taxes: On April 7, 2023, Tingo Mobile paid in full to the Nigeria Federal Inland Revenue Service (“FIRS”) its corporate income tax (“CIT”) and Tertiary Education Tax (“EDT”) for the fiscal year 2022.
  • Tingo Mobile Ghana: The Company’s recently established operations in Ghana are currently conducted exclusively through its trade agreement with the Ashanti Investment Trust. The Company leases mobile telephones to individuals introduced through the Ashanti Investment Trust and such customers also have access to Nwassa. The sim cards, airtime and data are sold to customers through a third-party vendor, as a result of which Tingo Mobile is not required to have a license with the National Communications Authority in Ghana. Tingo Mobile does not currently deal with or accept any new customers other than through its relationship with the Ashanti Investment Trust, it is however preparing to further expand the company’s business in Ghana and is currently recruiting a workforce and building a website to assist in facilitating this.
  • TingoPay: Tingo Mobile entered into a partnership with Visa on September 27, 2021, subsequent to which it has hosted several joint events with Visa, and it also launched a beta version of TingoPay with Visa on February 14, 2023. Prior to contracting with Visa, Tingo Mobile entered into a strategic partnership agreement with Stanbic Bank, dated November 17, 2020, and work was undertaken by the parties to develop an integrated e-wallet solution. After a disagreement over the Tingo Mobile press release in April 2021, the partnership with Stanbic Bank ceased and Tingo Mobile instead entered into the partnership and e-wallet integration with Visa.
  • Tingo Mobile’s NWASSA Platform: The Nwassa USSD platform is pre-loaded on the Tingo Mobile phones that are leased to the cooperatives and their farmers. Other individuals that have their own mobile phone can also register on the Nwassa USSD platform and conduct transactions on the platform. The Nwassa platform can be used by farmers to purchase items such as farming inputs, insurance, micro-loans, or additional airtime. The transactions made through Nwassa are processed by a third-party payment processing company owned by an American multi-national fintech company, which collects a commission payment on behalf of Tingo Mobile on each transaction and remits the commissions to its bank account. Tingo Mobile has confirmed its Q1 2023 reported revenue from the NWASSA platform.
  • Tingo DMCC: Tingo DMCC is the Company’s new agricultural export business. As of June 30, 2023, Tingo DMCC had conducted three export sales transactions totaling $348 million with customers located in neighboring countries within Africa. Tingo DMCC currently conducts its business through its direct contacts and sales leads. It is, however, in the process of developing a separate website for use in the future.
  • Financial Statement Errors: The “errors” identified by Hindenburg in Tingo Group’s financial statements and MD&A in its year-end 2022 Form 10-K and Q1 2023 Form 10-Q were typographical errors that were obvious to the reader from the remainder of the numbers and other information.
    All the information required to be disclosed relating to Certain Relationships and Related Transactions (including the acquisition of Tingo Mobile on November 30, 2022), and Director Independence, was included in the Form 10-K.

    While the Company’s cash-flow statement inadvertently labeled an increase in trade receivables as a decrease, the numbers themselves were correct. The discrepancies Hindenburg identified between the change in receivables reported on the balance sheet and change in receivables reported in the cash flow statement reflect Hindenburg’s misunderstanding of the numbers and the relevant U.S. GAAP accounting standards, including in relation to how the business combinations that closed during the relevant accounting periods impacted the numbers. In both cases, the “difference” resulted from non-cash adjustments related mainly to the Company’s acquisition of Tingo Mobile in Q4 2022 and its acquisition of Tingo Foods in Q1 2023, all of which were correct.

  • Independent Auditors: The engagement with Brightman Almagor Zohar & Co., a firm in the Deloitte Global Network, was after consideration of the relevant factors regarding the location of auditors. Such factors included that the Company does not have any operations in the U.S., and the consolidation process and preparation for the group’s financial statement and SEC filings is performed by the Company’s finance function in Israel.
  • Bank Balances: Bank statements were obtained directly from the banks used by Tingo Mobile and Tingo Foods, and interviews with the banks were conducted over video conference calls. The bank balances of each company were confirmed at several dates, including at the Quarter End dates of March 31, 2023, June 30, 2023, and as late as August 3, 2023, which reconciled and agreed to each company’s accounting records and financial statements.

    Tingo Mobile earns interest only on funds held in a fixed deposit account. Due to its cash needs from time to time, Tingo Mobile is unable to encumber a large portion of its funds in a fixed-deposit account that would earn interest.

Having concluded the investigation into the allegations made by Hindenburg against the Company and its businesses, which was deemed to be the highest priority, the Company and its outside counsel will now proceed to investigate Hindenburg’s allegations against the founder of Tingo Mobile and Tingo Foods, Dozy Mmobuosi.

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 a leading Agri-Fintech company operating in Africa, with a comprehensive portfolio of innovative products, including a ‘device as a service’ smartphone and a value-added service platform. 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 is currently in beta version, offering 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, groundnut oil, nut products, wheat, millet and maize; 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; and Magpie Securities, a regulated finance services Fintech business operating out of Hong Kong and Singapore. For more information visit tingogroup.com

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Ozekhome Hails Goodluck Jonathan on 67th Birthday

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Leading human rights activist and constitutional lawyer, Prof Mike Ozekhome, has celebrated former President Goodluck Jonathan as he turns 67 today.

In a heroic-worded eulogy, the renowned author, who recently launched 50 books at once, praised the former president for his gigantic strides during his tenure, and for putting the nation above his personal interest in the aftermath of the 2015 general election.

Below is Ozekhome’s full statement:

HAPPY BIRTHDAY TO MY DEAR BROTHER AND GOOD FRIEND,DR GOODLUCK EBELE JONATHAN, GCFR

BY PROF MIKE OZEKHOME, SAN, CON, OFR.

GEJ, you are a true democrat in the truest sense of the word.More than 8 years after you left office, many Nigerians are still yearning for your kind of humane and purposeful leadership that shunned discrimination, tribalism, sectionalism, prebendalism and cronyism.

Nigeria surely prospered under you, overtaking South Africa as the biggest rebased economy in Africa and one of the fastest growing economies in the world. For the common man,life was good. You certainly made your mistakes, like us all humans and mortals. But your gargantuan pluses far outweigh your few minuses. God has indeed been very kind to you, raising you from a bootstrap state of nadir to the zenith of power as president of the biggest democracy in the black world. But you never allowed power to intoxicate or overwhelm you as an aphrodisiac.

You showed uncommon humility and selfless leadership- a servant leader. As a living icon phenomenon, you have exemplified the quintessence of the highest virtues and nobility of a good man. At a time Nigeria was on the precipice of collapsing under a looming electoral inferno in 2015, you placed the national interest above your personal interest by conceding defeat to then candidate Muhammadu Buhari, even when votes were still being counted. Your immortal words before that historic occasion to the effect that “My ambition is not worth the blood of any Nigerian” easily placed you in the pantheon of rare heroes. The words rekindled the genre of Abraham Lincoln’s imperishable words during his 18th November, 1863 Gettysburg declaration, that “Democracy is government of the people, for the people and by the people”. Your continuous shuttle diplomacy across the world with which you illuminate dark electoral crevices has proven you to be a world leader of respected pedigree.

Through you, Nigeria exports Democracy.

Happy birthday to an iconic and uncommon democrat.

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For Globacom, Everyday is Christmas

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Globacom Limited, Nigeria’s telecommunications giant, continues to showcase resilience and innovation, reinforcing its market presence and bringing value to its loyal customer base, which remains a central asset to the company.

Despite operating in a very competitive industry, Globacom has achieved steady growth and stability. Its main focus has been on advancing Nigeria’s digital transformation.

Guided by a long-term strategic vision, Globacom is setting the pace in customer engagement, turning 2024 into a year of “Christmas is every day” for its subscribers. Through substantial investments in network expansion and customer rewards, Globacom has achieved significant milestones in customer loyalty, aiming to support subscribers with impactful services amid the festive season.

With a focus on bridging the digital divide, Globacom continues to support Nigeria’s tech-driven ecosystem, empowering individuals and businesses. The group has made significant strides in aligning its objectives with Nigeria’s digital literacy goals, as seen with the launch of a learning management solution that trains up to 100,000 users monthly on key digital skills, including blockchain, digital marketing, and artificial intelligence. This initiative supports Nigeria’s goal to produce 3 million technical talents by 2027.

Further positioning itself as a tech enabler, Globacom announced four upcoming digital innovation hubs to foster entrepreneurship in Nigeria, with the first set in Lagos by Q4 of 2024, followed by hubs in Port Harcourt, Ibadan, and Abuja by mid-2025. These hubs aim to create new opportunities in tech and digital services for Nigeria’s growing economy.

Beyond telecommunications, Globacom actively contributes to government-led initiatives in education, agriculture, and transportation, extending its digital solutions to sectors beyond telecom.

In October 2023, the telecom giant underscored its role as a significant industry player by paying N156 billion ($210 million) in spectrum renewal fees, reinforcing its dedication to regulatory compliance and ongoing growth in Nigeria’s telecom landscape.

Globacom holds a leading position as Nigeria’s home-grown telecom provider in a particularly money guzzling venture. It has never failed to live up to expectations. The telecom behemoth further expanded into financial services through its MoneyMaster Payment Service Bank (PSB) launched in October 2022.

MoneyMaster PSB leverages a network of 100,000 agents to offer essential banking services, including deposits, remittances, and prepaid cards, supporting the Central Bank of Nigeria’s (CBN) financial inclusion goals for the nation’s 79 million underbanked and unbanked citizens.

Globacom’s commitment to innovation, regulatory compliance, and customer satisfaction continues to define its legacy as a pillar of Nigeria’s digital economy, positioning it as a key player in the nation’s journey towards a digitally inclusive future. Globacom remains the pride of Nigeria.

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Ode to Chinua Achebe (1930–2013)

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By Barr Ifemeluofuma Atuanya

Iroko Ogidi, twenty and six years have lapsed since you wrote a befitting epitaph for my late father, Engr. Udemezue Atuanya (former Perm Sec/Controller of Works, defunct – East Central State) who attained immortality ahead of you.

Crafted with clinical precision this epitaph remains a tonic for my soul. An evergreen and never ending one; deeply resonating the profound legacy of my late Dad fondly called Okigbo.Okigbo was your friend, your soul-mate, your confidant, your kinsman and above all your in-law (Mrs. Agnes Adaosodi Achebe nee Atuanya was his first cousin). Yours with him therefore was an enviable affinity, far from a quicksand union. A friendship in which you proved to be a long distance runner.

Dike Ogidi (the grand one), now that your years have expired and you have gone the way of all mortals, it is obvious you cannot transit unsung and uncelebrated in the hearts of those that adored you. Hence, as thenudging and the prompting of affinity beckoned on me to pen this piece; I was to say the least star-struck, fully confronted by your larger than life image too huge for a mere narration. But I leverage on the fact that this is only a lullaby to bid you goodnight as you begin your eternal slumber in forever land.

Anya fulu ugo (the unique one), you were a rare breed of humanity; a man of priestly disposition and quiet dignity, an embodiment of deep thoughts and little talk. You were unapologetically your own person. Simple and unassuming, without airs nor chips on your shoulders. You were truly a breed apart, a locus classicus of uncommon carriage and decorum.

Like the Biblical city set on a hill, completely devoid of a hiding place, you were a world brand and the headline of history!

Your life was neither a cameo appearance nor a wink in the dark. You were never in the backburners or backwaters of life. You didn’t tiptoe through life. You were not a side attraction, mba nu! (No!) You played mainstream.

The highpoint of your life was your scholastic profundity. You were the grandmaster and presiding deity (Agaba Idu) of the literary world. You were not just a man of letters but of profound letters; the herald of African literary Renaissance.

Whether a broad stroke or a short take you never failed to pen a masterpiece, such that re-wrote the destiny of the entire black race beyond comprehension.

Your scholastic wizardry utterly demystified racial stereotypes and became the ultimate game changer in the condescending view points and warped consciousness of colonial writers like Joseph Conrad (Heart of Darkness), who felt the Ebony race is savage and less human. Suffice it to say that your literary fecundity syndicated the caveat that Africans must not be judged by color but by content, lending a vigilant voice to the legacy of Martin Luther King (Jnr).

Little wonder the superb articulation of your skill and sagacity caught the attention of the African living legend; Nelson Mandela that he referred to you as the writer in whose company the prison walls came down.

Agaba Idu, in life you were a colossus nay in death a colossal loss. Not just to the black race but to Ogidi in particular. More so since you sustained a flamboyant banner for her when it seemed her glory had departed (Ichabod).

For once upon a time in the history of this country Ogidi was a dynasty of icons. What with the rare breed of Ogidi Engineers that called the shots at the then Ministry of Works and Transport, defunct East Central State. I am talking about Udemezue Atuanya; Super Perm Sec. and controller of works, my uncle Maduegbuna Unobagha, Christopher Udokwu (odu) Augustine Achebe, Chike Ifekandu, Steven Okoye etc that shone like million stars in their hey days.

Oh! how I relish with extravagant passion, my Uncle Eric Atuanya (Ezefum); pioneer and and iconic legend of the then Mobile oil Nigeria, Walter Onubogu (renowned medic and former Minister for Health, defunct Eastern Region), BVO Amobi (then Igwe Ogidi and famed Medic), Justice Alfred Obi-Okoye (deified jurist), John and Oby Okaro (a double dose of medical lngenuity), Egwu Atuanya (Iconic Pioneer Medic of the National Assembly Clinic, Lagos), legendary Nweze Udokwu (profound progenitor of phenomenal Nike Grammar School, Enugu), Nwafor Agulefo (A list Medic), Ernest Okocha (Engineer per excellence), Dr Nwasike of Ikenga Ogidi (primus inter pares) Ikwuemesi (of Sosoliso fame), Dr Ojuche of Nkwelle Ogidi (exceptional Medic) and lots more too numerous to mention and too monumental to keep memories distant.
Oh! Ogidi lnwelle, what gallery and galaxy of super stars you suckled, what an enviable pedigree!

But alas Ogidi Idemili it is no longer uhuru for you. At some point in your golden history you began to nose dive. Like a missing chord in a grand Orchestra you began to pale into obscurity. You made a wide berth from the frontlines and headlines of Nigerian history. What a far cry of yester years! So apt for this scenario is the indelible and highly redeeming question of my dexterous and dynamic Governor Mr. Peter Obi: Is Anambra state cursed or are we the cause? And so do I ask: Is Ogidi now cursed or are we the cause? Have we
overdrawn our Account in the history bank of this country? Why are we no longer upstream and mainstream? Why?

But as I pondered with apostolic sobriety, my intuition is deafened by the sound of abundance of rain. Yes in my mind’s eye I see thick clouds aligning and realigning to drench Ogidi with the double honour of former and latter rains, such that Ogidi will yet again reap a bountiful harvest. Like the proverbial phoenix Ogidi shall rise from the ashes of her past glory to dizzy heights of prominence. Breaking forth like waters, she will yet again break ground and breakthrough to redeem her star-studded years in all spheres of endeavor. Already people like Ada Unobagha (Solicitor General, Anambra State), Lawrence Ikeakor (Hon. Commissioner for Health, Anambra State), Bob Manuel Udokwu (Senior Special Assistance on Creative Media Anambra State and Nollywood guru), Ada Ehigiamusoe (Justice of Benin High Court), Chiedu Osakwe (Former Ambassador and Director of Accessions World Trade Organization, Geneva Switzerland) are eloquent telling points in this regard. So to Nkwelle Ogidi, Ikenga Ogidi, Umuanugo, Umudoma, Ire etc I make bold to say; it is morning yet on creation day for you! Post Nubia phoebus!
Oh! What a digression. Chinualumogu are you still online? I only made a brief detour to make a case for the diming destiny of Ogidi Inwelle, our common patrimony. More so at your demise.

As my ink dries on this piece and I begin to bid you a final goodbye, I must not fail to mention that controversy barely parts company with Patron Avatars like you. And so it was, akin to the deified African masquerade that does not exit an outing without erupting violent clouds of dust, deafening ripples (not likely to evaporate in a hurry) ushered your final departure. What with the raw umbrage and rabid vituperations that confronted your final offering to humanity. Or better still; the last testament of your literary exploits titled: There was a Country. Not a talk in the margins, this Best Seller is so pungent and penetrating; belching and pulsating with controversy. But as the hullabaloo raged, you meandered through the landmines of verbal artillery and veered into eternal glory!

Then I wondered could this book be Pandora’s Box? Has it caused things to fall apart and anarchy unleashed upon the earth? Capital No! It is simply the parting shot of an ardent marksman. The signature tune and sign off phrase of a departing legend. Oh! How you stirred the hornet’s nest, ruffled feathers, rattled nerves and bowed out when the ovation was highest!

What a clinical finishing!

Whether demonized or canonized, lauded or loathed, it remains an undisputed fact of global history that you were truly a genius! You are gone, but you rocked the red carpet of history in no mean way; making full proof that death is not the greatest loss in life but what dies inside a man when he lives and/or what dies with a man when he dies. You were none of such you died empty totally discharging all your potentials. To wit a clear handover of baton to upstarts in the relay race of life. Good finish!

Chinualumogu, well done and fare thee well as you journey to the land of eternal consequence, where you will definitely walk tall among our ancestors.

Na gboo! (Fare thee well) Iroko Ogidi!
And to the living may we aptly be reminded that we are all transient toys in this fleeting game called life.

Now that your remains have been gracefully lumbered to dust, I cannot affirm any less that truly, there was a man!

Barr. IfemeluOfuma Atuanya is the daughter of late Engr. Udemezue Atuanya of Umuosodi, Nkwelle Ogidi, Anambra State. She is an Attorney, a published Author, a Sociologist and a public speaker, and can be reached via ashestobeautyng@ gmail.com and 08147492771

This piece was first published in 2013.

HERE ARE SOME REVIEWS FROM READERS:

Wonderful! I’m satisfied. R.I.P Chinua Achebe – Rico De Red

Nice one bro. He is truly a legend – Vic Popee

A long but very interesting piece. Barr Ofuma, thanks for a job well done. One can easily say that Ogidi people have a flair for writing. God bless you – Engr. Arinze Nnoka

Excellent and a thought through piece for an extraordinary as well as distinguished citizen. He will surely be missed – Emeka Belonwu

Ogidi Kwenu!! I am proud to be a daughter of the land. Thank you Ofuma… – Nanma Okafor

You said it all, thank you very much oke nwadi-ani – Chris Ogo

Just seeing this piece to a man more deserving. Great job Ofuma. Ogidi mulum ma fenyenam nni. Ogidi is rising again! – Nkiru Okongwu-Eziakor

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