Delayed salaries and workers cuts at Tingo Group months after SEC fraud costs

Tingo Group, an agri-fintech firm sued by the SEC in December 2023 for fabricating its monetary statements, furloughed practically all its full-time workers in March 2024.

The furlough, which affected at the least fifty workers, got here after three months of wage delays, two former workers mentioned. The corporate promised they’d be paid by February 2024.

“I attraction to you to remain, allow us to repair the system collectively. This can finish, God keen, very quickly… I don’t want anybody laid off,” the group’s CEO, Dozy Mmobuosi, mentioned in a recording of a January 31 company-wide name obtained by TechCabal. He additionally promised that the excellent salaries could be paid in 4 weeks.

The guarantees had been made regardless of the corporate’s authorized troubles. In late 2023, the SEC started an investigation into Tingo Group and located that whereas the corporate reported having money and money equal of $461.7 million for the fiscal 12 months 2022, its financial institution accounts held lower than $50.

Weeks after the fees had been filed, some Tingo workers got a pay increase. “Some individuals obtained a 200% pay enhance, some 300% and others 400%,” an government on the firm mentioned. 

In March, workers had been advised they’d be furloughed till the corporate might afford to pay them.

“Primarily based on current realities and contemplating the uncertainties forward and with the intention to keep away from setting unrealistic expectations, which might have an hostile impact on the well-being of our workers, the corporate should put the employment of all workers on furlough,” an electronic mail addressed to your complete Tingo staff workers learn. The furlough was efficient March 1.

A extremely positioned government who nonetheless works on the firm advised TechCbal that it was a pure transfer for the corporate, contemplating its monetary struggles. 

“The corporate’s belongings have been frozen. Distributors who owe the corporate fee have taken benefit of the circumstances [to forfeit their obligations,]” he mentioned on a name with TechCabal.

The corporate didn’t share any details about the promised wage funds. 

Tingo Group declined to touch upon the matter and invited TechCabal to a press occasion for a product launch. 

In response to that invitation, Tingo Meals will launch two new drinks on March 16 at a cocktail occasion hosted by an prosperous conventional ruler, the Ooni of Ife. 

“There was no cash to pay excellent salaries, however there may be cash to provide drinks?” an ex-employee mentioned in response to the information.

That is the second time Tingo has laid off workers this 12 months. In February 2023, the corporate abruptly terminated about 40 contract workers whereas owing them salaries for work achieved for Tingo Cellular in December 2023 and January 2024.