Tingo Mobile, a fintech startup known for its social impact initiatives, has employees embroiled in a payment crisis amidst fraud charges leveled against the company in the United States.
Forty employees, tasked with supporting new users and resolving issues on the TingoPay digital payments app, have been left perplexed after being laid off without receiving their salaries for December and January.
The contractors, who provided essential support to Tingo Mobile’s operations, were abruptly informed of their termination during a call with Tingo Mobile and HR Indexx (HRI) in the first week of February 2024. Despite their critical contributions, they were left struggling with financial uncertainty, compounded by the non-payment of their salaries.
According to reports, HR Indexx, the outsourcing company responsible for managing the contractors, attributed the salary delays to Tingo Mobile, citing an outstanding amount totaling millions. Expressing its inability to cover the salaries without prompt payment from Tingo Mobile, HR Indexx noted the financial strain faced by the affected contractors.
Despite mounting concerns and inquiries, HR Indexx refrained from providing immediate clarifications, further exacerbating the contractors’ plight. The disabling of comments in the WhatsApp group used for coordination effectively stifled avenues for grievances, leaving the contractors in a state of uncertainty and frustration.
During the layoff call, contractors recounted being advised by HRI to explore alternative skill sets and seek employment opportunities elsewhere — a directive that points to the severity of the situation and the uncertain future facing the affected individuals.
The unrest surrounding Tingo Mobile emanates from allegations of financial misconduct and deception, with the US Securities and Exchange Commission (SEC) accusing Tingo Group, the company’s parent entity, of fabricating financial statements and misleading investors. Tingo Mobile, a subsidiary of Tingo Group, found itself thrust into the spotlight following a scathing report by Hindenburg Group, an American short seller.
In response to the allegations, the SEC initiated a formal investigation into Tingo Group, leading to the suspension of trading in the shares of another subsidiary, Tingo Foods PLC. The unfolding crisis has cast a shadow over Tingo Mobile’s operations, leaving its contractors wrestling with uncertainty and financial instability amidst the backdrop of legal and regulatory scrutiny.
The fate of the affected contractors hangs in the balance, emphasizing the impact of corporate misdeed on individuals’ livelihoods and well-being within the fintech ecosystem.
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