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Breaking News: Tingo Group Announces Completion Of Investigation Into Allegations Made Against the Company
Published
1 year agoon
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Editor
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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Unveiling the Truth Behind False Accusations, Unjust Sentences
Published
9 hours agoon
September 15, 2024By
EricBy Hezekiah Olujobi
A criminal may deny their crime even when caught red-handed. It is important to recognize that just because the government condemns certain crimes like sexual molestation and rape, it does not mean that everyone accused should automatically jailed contrary to law or receive heavy sentences. Fairness and justice must prevail in every trial.
As a child rights advocate and a father of four daughters, I am fiercely protective of my children. I will not tolerate anyone attempting to harm them. While I am vigilant in safeguarding my children and providing them with education, I am troubled by the stories I hear from prison inmates across the Southwest, including the recent complaint we received from the United States prison in Atlanta, Georgia, who claim they have been unfairly sentenced.
For example, I encountered a man behind bars in Ado Ekiti, Ekiti State, who insisted that his wife forced her own daughter to falsely accuse him of impregnating her. He vehemently denied committing such a heinous act because it is an abomination in his hometown, citing a misunderstanding with his wife over allegations of adultery involving a police officer who happened to be the investigating officer in his case.
Despite his pleas for a DNA test to prove his innocence, he was swiftly sentenced to life imprisonment.
We also have a similar case in Kirikiri where a wife accused her husband of molesting his own daughter, and the man was dumped in prison without trial since 2020. The same woman came to cry for our intervention to free her husband. Our investigation revealed that this woman was actually jealous of her husband with another woman. She has ran away from Lagos because some human rights lawyers are threatening her with arrest for failure to show up.
We also have a man complaining against his former girlfriend who framed him for the offense of raping her daughter just because they had a misunderstanding.
In the United States of America, we have one ADEDOJA Olaniyi baH, a Nigerian who was convicted to 3 life sentences plus 76 years over the allegation of rape. All evidence such as DNA, CCTV footage, and his GPS data that could have exonerated him were prevented during the trial. The man was unfortunate to run into such a deep grave dug by his friend who betrayed him after a business transaction.
Also in Kirikiri we attended to Robert Israel, who was sentenced to life imprisonment over allegations of rape. Mr. Robert Israel, a 60-year-old electrician and estate agent from Ibadan, was sent by his US-based employer to supervise a house in Lagos in July 2021. He explained that his path crossed with Oluchi, the 9-year-old victim’s mother, in August when she was engaged with a neighbor who had a shop on the same street. He mediated a misunderstanding between the two sisters, which led to a fight in August. By September.the other woman died mysteriously.
Subsequently, Oluchi’s mother sought house cleaning work from him, but he recommended her to a house painter but she quoted a high price, leading to her rejection.
Robert Israel recounted his surprise when Oluchi’s mother, accompanied by her husband and Oluchi, arrived at his place with two police women from Langbasa Police Station, Ajah, Lagos to arrest him on 29 October, 2021. They accused him of raping Oluchi on the 5th and 9th of October 2021 in the corridor of his master’s house. Robert stated that Oluchi and her mother knew his place but had never entered his apartment due to security measures.
When questioned about evidence, Oluchi’s mother claimed to have washed the victim’s underwear, leading to her dismissal from the DCO police officer’s office. Despite a medical report showing no injuries to the victim’s genitals, Robert was charged to court , convicted and sentenced to life imprisonment on June 13, 2024.
Behind every false allegation of rape, there is an underlying story which may not be clear to the public. When any aggrieved person wants to deal with the offended person, what he or she needs to do is to report to the police and frame up the person on allegations of rape.
The attitude of the Court of Justice towards this offense does not portray the true symbol of justice. The court should be a place where the oppressed get justice, not where the oppressor triumphs over the innocent. The court and the police should never be used as an instrument of oppression. Sincere apologies to my noble lords. The office of the Chief Judge must caution some judges who are known for conviction. There is a need to sensitize the conscience of these judges to the consequences of their judgments upon the accused person. Crushing the life of an individual is crushing the children at home and their extended family. Such heavy sentences are indirectly death sentences.
The police carry the whole blame for this for a lack of power to turn down every false accusation and allegation instead of dealing with the real grievance.
No matter how brilliant and strong a submission a defense counsel can make, some judges are hell-bent on tempering justice with mercy.
We also have some so-called human rights activists who go about mounting pressure on the victim and their families to appear before the court with a threat to send them to jail. Why all these things? Just to gain popularity or international grants.
A case of rape or sexual molestation is indeed a very sensitive and serious issue that requires careful consideration and handling. We would not take such cases lightly; we will ensure that justice is served for the victims. However, justice is not for the victim alone but also for the offender and the society.
It is crucial to prioritize the well-being and justice for the victims in such cases and not to be swayed by the denials or attempts to minimize the seriousness of the offenses.
It is essential to uphold the rule of law and ensure that the real perpetrators are held accountable for their actions.
As for us here, or let me say, “as for me, I would take the risk to listen to the individual who strongly believes he is innocent with his proof of evidence, and I shall raise my voice on behalf of such an individual until justice is triumphed.”
In situations where individuals are crying out for justice, it is crucial that we listen attentively and not ignore their pleas. The pursuit of truth and fairness should always guide our actions in such cases.
It is high time to listen to the complaints of individuals crying in heavy sentences without money to appeal for their case.
While the Correctional Centre are doing their best to keep the people behind bar safe, the overcrowding remains their major problem. The only way to help reduce the overcrowding is to identify cases who are not supposed to be there.
For more information about us, visit www.cjmr.com.ng or contact us at 08030488093 or via email at hezekiaholujobi@yahoo.com or info@cjmr.com.ng.
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Atiku Leads PDP Campaign Rally for Edo Guber Election
Published
10 hours agoon
September 15, 2024By
EricBy Eric Elezuo
As the campaigns wind down in the race to Osadebe House, the final destination of the Edo State governorship election, the Peoples Democratic Party (PDP) has urged the electorate to come out and enmasse and vote, and ensure to guard their votes to avoid manipulation.
Leading the charge in Oredo, Benin City, venue of the PDP mega and final rally, former Vice President of Nigeria, who is the Waziri Adamawa, Alhaji Atiku Abubakar, told the people of Edo State not to be intimidated, threatened or be scared of voting, but, rather vote, and defend their votes on Saturday to ensure that their candidate in the Governorship election in Edo State, Mr. Asue Ighodalo, emerges victorious.
He recalled that the opposition threatened the State four years ago, but it didn’t work because Edo people can’t be intimidated, and ‘Edo no bi Lagos’. He appealed to the residents of Edo State to do the same this time around and ensure the PDP candidate, Asue Ighodalo, becomes the governor of Edo State.
Also addressing the mammoth crowd, chairman of Edo National Campaign Council and governor of Adamawa State Ahmadu Fintiri, commended Governor Godwin Obaseki for his many developmental strides.
He Said, “Obaseki has led a landmark in Edo State in terms of development, performance and human capacity development. Edo people need to bring a competent person like Obaseki or a man better than Obaseki.
“You can’t vote for somebody else than Obaseki, we will support Asue Ighodalo because he is the most credible in this election come September 21st governorship election.
“We all will be here next Saturday, we can’t be intimidated, threatened by anybody or party. We will vote, protect and defend our vote and ensure Asue Ighodalo wins the election”.
Chairman of the Governors forum and Bauchi State Governor Balar Adulkadiri Mohammed said the PDP governors are more united than ever. He noted that PDP are all backing the Asue Ighodalo to emerge governor of Edo State.
Osun State Governor Ademola Adeleke said dancing is sure in Edo State to come 21st of September 2024 as light and darkness can’t agree. We have the best candidate in this Edo election as Obaseki has done well for the Edo people and Asue Ighodalo will do more.
In his welcome address the chairman of Edo State chapter of PDP, Anthony Aziegbem, thanked guests present urging Edo people to come out enmass to vote PDP candidates.
He said, “it’s only Edo people that can determine who will be their governor come September 21st governorship election in Edo State No matter the intimidation, harassment, threat the people will stand their ground to vote their choice come September 21st in Edo State”.
The BOT Chairman Adolphus Nwabara said he has warned Prof. Mahmood Yakubu not to be intimidated but create a level playing field for all candidates in the election.
The party used the medium to call on the INEC Chairman to use the Edo election to correct the wrongs of last year.
“Don’t be intimidated, do the right thing and retire as a clean man,” the party advised Yakubu Mahmood.
Handing over the party’s flag to the Governorship candidate Asue Ighodalo, the PDP National Chairman Umar Damagum called on the INEC chairman to refrain from calling results at night as the midnight announcement will be resisted by Edo people.
“I call on all Edo people to be watchful and defend their votes as the Edo election is a test for democracy in Nigeria”.
The PDP governorship candidate Asue Ighodalo and his running mate received the party flag from the National Chairman of PDP and Ighodalo thanked all present in the rally assuring them that he would take Edo to higher ground.
He said he will lead a successful State where citizens will be prosperous. “I will govern sincerely, transparency and do what will make Edo great again. PDP is a party of courage and we dare to fight and win our elections come September 21st 2024.
“We promise to take Edo to the next level and make the State amongst the first world States.”
The Edo governorship election is billed to hold on Saturday, September 21, 2024 with the PDP candidate, Asue Ighodalo squaring up against 16 other candidates from various political parties, two of which are formidable. They are Monday Okpebholo of the All Progressives Congress (APC) and Olumide Akpata of the Labour Party (LP).
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Investment Summit: Adeleke Vows to Transform Osun Economy
Published
10 hours agoon
September 15, 2024By
EricBy Eric Elezuo
Osun State governor, Senator Ademola Adeleke, has said that his government is poised to transform the economic fortunes of the state.
The governor made the vow while speaking on one of the fora of the 4-day Industrial Investment Summit 2024, hosted by the state, with a solid pledge to transform the state’s economy while identifying opportunities and strengths of various sectors that will attract investors, and add more value to the state.
In his speech as the Osun Investment Summit got underway, at the opening ceremony of the Osun Investment Summit held at the Olagunsoye Oyinlola Auditorium hall, UNIOSUN, Osogbo, the governor said his administration would further provide a platform for discussions and agreements on actionable strategies for accelerating the pace of industrialisation and economic growth in the State with the investors.
According to him, “Our vision is also to make Osun State one of the top ten revenue-generating states in Nigeria, ensure relative peace and security and grow the economy.
“Osun State is Open Beyond Borders and Across Space for Industrial Investment to Investors, Manufacturing Industries, World Leaders in Business, Private and Corporate Investors, Tourists and people in the Diaspora. We are open to investments from Osun indigenes, Osun in the diaspora and indeed everyone from across the globe. Osun is home to everyone irrespective of tribe, race, language, colour or background.
“We want to accelerate the pace of industrialisation because we are on a mission and that is why we have embarked on several initiatives across different sectors of the Osun economy which include the revitalization of the Free Trade Zone which is planned to provide over 1,000,000 direct and indirect jobs for the people, Establishment of Farm Produce Aggregation Centres with Cold and Dry Storage Facilities and Processing Units, Encouragement of Youths to key into Skills Upgrade and Entrepreneurship Development Training Programmes and Revival of Moribund Industries among others.
“Let us use this summit to shape the State’s development agenda and forge long-lasting bilateral and multilateral alliances for mutual prosperity. This will ensure that in the final analysis, when the story of Osun’s emergence as an economic giant is written, history will reserve for us a commendable mention and a glorious front seat.”
In his speech, the commissioner for Commerce and Industry Revd. Bunmi Jenyo stated that the Industrial Investment Summit 2024 is a platform for opportunities and strategic matching for stakeholders in Osun industrial ecosystem to facilitate partnerships and investments.
According to him, “We want Osun to be a hub of commercial, industrial and economic activities in the South Western Nigeria and beyond. We are hopeful this summit will open up the industrial and business landscape of Osun and many investments will spring up in the State with multiplier effects.
“Osun State is Open Beyond Borders for Investments from Osun indigenes, Nigerians, and all persons in the Diaspora. The State, through the Ministry of Commerce and Industry, is ready to support investments by providing an enabling environment for businesses to thrive.
He however affirmed that, “the state planned the industrial investment summit to bring together investors, business and corporate giants, industry experts, academia, government officials and entrepreneurs to explore industrial and business investment opportunities across Osun.”
Additional info: The Tribune
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