Delayed salaries and staff cuts at Tingo Group months after SEC fraud charges

Tingo Group, an agri-fintech company sued by the SEC for faking its financial statements, furloughed nearly all its full-time staff in March.

TECHCABAL

Tingo Group, an agri-fintech company sued by the SEC in December 2023 for fabricating its financial statements, furloughed nearly all its full-time employees in March 2024.

The furlough, which affected at least fifty employees, came after three months of salary delays, two former employees said. The company promised they would be paid by February 2024.

“I appeal to you to stay, let us fix the system together. This will end, God willing, very soon… I do not want anyone laid off,” the group’s CEO, Dozy Mmobuosi, said in a recording of a January 31 company-wide call obtained by TechCabal. He also promised that the outstanding salaries would be paid in four weeks.

The promises were made despite the company’s legal troubles. In late 2023, the SEC began an investigation into Tingo Group and found that while the company reported having cash and cash equivalent of $461.7 million for the fiscal year 2022, its bank accounts held less than $50.

Weeks after the charges were filed, some Tingo employees were given a pay raise. “Some people received a 200% pay increase, some 300% and others 400%,” an executive at the company said. 

In March, employees were told they would be furloughed until the company could afford to pay them.

“Based on present realities and considering the uncertainties ahead and in order to avoid setting unrealistic expectations, which could have an adverse effect on the well-being of our employees, the company will have to put the employment of all employees on furlough,” an email addressed to the entire Tingo team employees read. The furlough was effective March 1.

A highly placed executive who still works at the company told TechCbal that it was a natural move for the company, considering its financial struggles. 

“The company’s assets have been frozen. Vendors who owe the company payment have taken advantage of the circumstances [to forfeit their obligations,]” he said on a call with TechCabal.

The company did not share any information about the promised salary payments. 

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