Muluzi’s Nigerian business partner Dozy Mmobuosi touted to fund construction of houses for Cyclone Freddy survivors is involved in fraud allegations

* Hindenburg Research accused Mmobuosi’s fintech company, Tingo Group of being an “exceptionally obvious scam with completely fabricated financials”

* Nigerian Communications Commission (NCC), which revealed that it has no record of Tingo being a mobile licensee at all, despite company claims of having 12 million mobile customers

By Duncan Mlanjira

Nigerian businessman, Dozy Mmobuosi — who was unveiled by former President Bakili Muluzi as the donor for the housing project in Phalombe to benefit Tropical Cyclone Freddy surviving families — is embroiled in fraud allegations controversy as according to a report by US investment research firm, Hindenburg Research.

A report published by a Nigerian online platform, qed.ng says Hindenburg Research accused Mmobuosi’s fintech company, Tingo Group of being an “exceptionally obvious scam with completely fabricated financials”.

It further said Tingo Group claims to have diversified business interests in mobile phones, food processing, and online food marketplace for farmers primarily located in Nigeria — but the research firm alleged that Tingo Group lied about its US$1.6 billion food processing plant, as well as some of its partnerships and products.

Qed.ng further reports that Hindenburg Research’s engaged Nigerian Communications Commission (NCC), which revealed that it has no record of Tingo being a mobile licensee at all, despite company claims of having 12 million mobile customers.

Mmobuosi accompanied Muluzi alongside former President Joyce Banda when housing project was launched in the area of Sub Traditional Authority Mphweremwe under #TigwiraneManja# campaign that was launched by President Lazarus Chakwera.

A report by Malawi News Agency (MANA) said Muluzi, who is the ambassador for the #TigwiraneManja# initiative, said after meeting Chakwera at Sanjika Palace he approached Mmobuosi, saying he was doing business in the United Kingdom to assist survivors of the cyclone with houses.

“After a week, I got a call from Dozy Mmobuosi saying he will assist by constructing 100 houses,” Muluzi is quoted as saying. “He has so far put aside K500 million for the houses; each house will cost K5 million,” he had disclosed.

He further said Mmobuosi also volunteered to come and witness the impact of Freddy in the country.

The Nigerian online reported that Mmobuosi shared a photo of his meeting with Muluzi on Instagram on Tuesday, June 6 where he wrote: “Yesterday, I had the honour and privilege of spending time with His Excellency Dr. Bakili Muluzi, the former President of Malawi.

“This meeting wasn’t simply an encounter, but a masterclass in leadership from a man who stood at the helm of Malawi’s transformation into a multi-party democracy.

“We explored the complexities of climate change, an issue underscored by the recent devastation of Cyclone Freddy in Malawi. The global implications of such a disaster cannot be overstated, and it reminds us of the pressing need for sustainable action.”

Mmobuosi is also quoted as saying he was “deeply moved” by Muluzi’s vision and dedication to his country and “made a commitment to support Malawi’s development journey.”

But Qed.ng reports that Mmobuosi later disabled the comments on the Instagram post.

Meanwhile, the Nigerian online said Hindenburg Research disclosed that it visited Tingo Mobile’s office in Nigeria and found only a handful of employees and a sign posted on its door by federal tax authorities stating that the company is delinquent on its tax obligation.

“We’ve identified major red flags with Dozy’s background,” the report from the firm said. “For starters, he appears to have fabricated his biographical claim to have developed the first mobile payment app in Nigeria. We contacted the app’s actual creator, who called Dozy’s claims ‘a pure lie’.”

The businessman is also to claimed that he received a PhD in rural advancement from a Malaysian university in 2007 but when Hindenburg Research contacted the university to verify the degree, “they wrote back saying no one by his name was found in their verification system”.

 

Further the firm reported that “was arrested in 2017 and faced an 8-count indictment over issuance of bad checks, according to the Nigerian Economic and Financial Crimes Commission — but he later settled the case in arbitration”.

“In 2019, Dozy claimed to have launched ‘Tingo Airlines’ and posted social media messages encouraging customers to ‘fly with Tingo Airlines today’.

“Media outlets later uncovered that Tingo had photoshopped its logo onto pictures of airplanes. Dozy later admitted to never owning any actual aircraft.”

The Nigerian online also said earlier this year, Mmuobuosi was reported to be interested in buying English football club, Sheffield United.

A report by billionnaires.africa in February this year indicated that Mmobuosi was embroiled in lawsuits for unpaid debts in both the United States and the United Kingdom.

The online quotes a recent report by Bloomberg as saying he was sued by one of his top executives at Nigeria-based subsidiary Tingo Mobile, Sukhdeep Bhogal, for reportedly withholding payment for at least six months of work in a US$300,000 Connecticut lawsuit.

The report quoted court documents that an Indian national, Bhogal had assisted in raising US$400 million for a Tingo unit, saying the benefits allegedly unpaid to Bhogal amount to “hundreds of thousands of dollars of wage theft,” — also quoting his lawyer, Jennie Woltz.

“In light of the recent allegation that has cast doubt on the Nigerian entrepreneur’s character,” reports billionnaires.africa. “Woltz claimed that Bhogal worked for Dozy Mmobuosi for over six months without any compensation.

“Despite promises of bonuses and equity at the start of his employment, Bhogal allegedly received little to no wages during this time.

“The case comes amid an ongoing legal dispute, as a UK court previously ordered Mmobuosi’s firm, Tingo International Holdings Inc., to pay £87,000 (US$105,000) to settle unpaid rent for a property in Radlett that he had used as his private residence.”

Billionnaires.africa further reports that “despite declaring himself to be a billionaire, the entrepreneur’s business ventures and companies fall far short of his self-proclaimed billion-dollar valuation”.

“However, he recently made an offer to buy Sheffield United, an English football club that is presently in the second automatic promotion spot for a return to the Premier League.

“To gain approval from the authorities, Dozy Mmobuosi must pass the Owners and Directors’ Test conducted by the English Football League. This examination will delve into the origins of his wealth and assess whether he possesses the necessary qualities to be the owner of a team.

“As part of the move to fast-track the sale of Sheffield United, which was initiated by its owner, Prince Abdullah bin Mosaad bin Abdul Aziz Al Saud, the EFL has been awaiting a response from Mmobuosi to those queries for some time and until the League is satisfied that the requirements of its regulations have been met, it will not process a change of control at the club.”

Meanwhile, Malawi Government is embroiled further in Fertilizergate after an agreeing with a Romanian company, East Bridge Estate SRL to supply 150,000 metric tones of fertilizer under Affordable Input Program (AIP) into the country.

But the company, touted as young and dynamic, is specialized in the supply of medical equipment that has been contracted by Minister of Finance, Sosten Gwengwe in which Malawi will spend US$124.5 million.

Last year, the President Chakwera administration was involved in a scandal when it dealt with a non-existent butchery to supply fertilizer — and now the saga sorrounding Mmobuosi, who is touted to spend K500 million for the housing project in Phalombe yet he disabled his announcement of the deal after posting it on Instagram.