The prosecutor of the International Criminal Court (ICC), which has come under intense scrutiny following its recent decision to seek arrest warrants for Israeli Prime Minister Benjamin Netanyahu, Defense Minister Yoav Gallant, and three leaders of the Palestinian group Hamas, has made a scathing revelation that has put further doubt on the impartiality of the court in prosecuting international crimes.

The ICC prosecutor Karim Khan, who announced the decision on Monday, sparked a significant geopolitical debate, with Israel and its key allies led by the United States, crying blue murder.

In an exclusive interview with CNN, Khan defended the ICC’s mandate to prosecute war criminals without bias or discrimination. He however made some shocking revelation that alludes to the growing belief that the ICC is biased.

“Of course, I have heard some elected [ICC] leaders speak to me and be very blunt: ‘This court is built for Africa and for thugs like Putin’, was what a senior leader told me,” Khan disclosed. 

In the wake of the ICC’s move to arrest and prosecute Israeli leaders, this revelation has cast a shadow on the core mission of the court, prompting a clarification from Khan.

“We don’t view it like that. This court is the legacy of Nuremberg. This court is a certain indictment of humanity. This court should be the triumph of law over power and brute force; grab what you can, take what you want, do what you will, and we are not going to be dissuaded by threats,” he said.

The prosecutor’s office announced on Monday its intention to seek arrest warrants for Netanyahu, Gallant, and three Hamas leaders on charges of war crimes and crimes against humanity. Alongside Yahya Sinwar, the Hamas leader in Gaza, the ICC seeks to issue warrants for the military wing’s commander-in-chief Mohammed Deif, and its political leader Ismail Haniyeh. These leaders are accused of orchestrating and committing severe violations during the ongoing conflict in Gaza.

The ICC’s decision has been met with strong opposition from Israel and the United States. President Joe Biden publicly rejected the ICC’s application for arrest warrants, calling the move “outrageous.” Speaking at a Jewish American Heritage Month event, Biden stated, “There is no equivalence between Israel and Hamas,” reinforcing the U.S. stance that the ICC does not have jurisdiction over Israel.

Republican lawmakers in the U.S. have echoed Biden’s condemnation, with Senator Tom Cotton and House Speaker Mike Johnson leading calls for sanctions against the ICC. 

“My colleagues and I look forward to make sure neither Khan, his associates nor their families will ever set foot again in the United States,” Cotton asserted. 

Johnson said, “The ICC has no authority over Israel or the United States, and today’s baseless and illegitimate decision should face global condemnation.”

Khan’s comments to CNN highlighted a persistent critique of the ICC: its perceived focus on prosecuting individuals from the developing world, particularly Africa, while seemingly overlooking alleged war crimes by leaders of wealthier nations or allies of the US. This perception has fueled accusations of hypocrisy and selective justice. Historically, the majority of those indicted by the ICC have been from Africa, leading to claims of a biased approach.

Social media has been abuzz with reactions, with many commentators pointing out the contradiction in the unnamed official’s remarks. The ICC’s mandate, rooted in the legacy of the Nuremberg Trials, aims to uphold international justice impartially, a principle Khan reiterated during his interview.

The ICC’s actions come against the backdrop of a devastating humanitarian crisis in Gaza. Since Israel began military operations on October 7, over 35,000 Palestinians, predominantly women and children, have been killed. Additionally, at least 10,000 people are missing, presumed dead under the rubble, according to Palestinian civil defense officials. The scale of destruction has intensified calls for accountability and justice from the international community.

The arrest warrants sought by Khan will now be reviewed by the judges at the ICC, who will decide whether to grant them. This process marks a critical juncture for the ICC as it navigates the complex legal and diplomatic terrain of the Israeli-Palestinian conflict. The court’s ability to act on these warrants could significantly impact its credibility and the broader landscape of international justice.

Reactions from the international community have been mixed. Switzerland’s UN envoy, Pascale Baeriswyl, expressed full support for the ICC, emphasizing the importance of respecting its independence. 

France and Belgium have also backed the court’s actions, stressing the need to combat impunity for war crimes. 

“France supports the International Criminal Court, its independence, and the fight against impunity in all situations,” stated the French foreign ministry.

A big hike:” The Central Bank of Nigeria (CBN) has increased its key interest rate by 150 basis points to 26.25% in an effort to combat persistent inflation and stabilize the nation’s currency…Despite the rate increase, there are concerns about the effectiveness of monetary policy in addressing supply-side and structural issues driving inflation.”

According to government data, more than 95% of Naira in circulation is outside the banking system, meaning that whatever rate policy the apex bank is formulating has minimal impact on consumer demand:  “Nigerians have increased their hoarding of cash, with as much as 94% of the currency in circulation held outside banks by March 2024”.  This is very important, using basic economics: if demand remains the same when supply is reduced, price will go up, ceteris paribus.

By the central bank increasing the rate, the demand side is marginally impacted since consumer  credit  in Nigeria is largely insignificant and cash remains king, outside the influence of the monetary rate policy. But what the apex bank is doing does affect something, and that is SUPPLY.

So, when we increase the rate, we further reduce supply of goods and services since only corporate borrowers are largely affected, and when prime rates go up, bank borrowing interest rates follow, and companies pause expansion since the cost of capital is high. But you need high supply, from companies, to reduce price, and if you process that, you will agree that the apex bank’s trajectory will NEVER stop inflation since it is a clear vicious loop where more rate hikes will lead to reduced supply and more inflation in the economy.

Furthermore, as cash is king in Nigeria and people rarely save since they do not have a lot, the SAVING side benefit of rate hike, typical in most western nations do not apply. So, even if you increase rates, people suddenly will not start saving because they do not have the funds: “As of May 3, 2024, the Nigeria Deposit Insurance Corporation (NDIC) covers 98.98% of depositors in Deposit Money Banks (DMBs) with a maximum deposit insurance coverage of N5 million. This is an increase from the previous coverage of N500,000, which covered 89.20% of depositors.”

As you fight inflation, look at the FX component where the exchange rate is now N1,480/$. That the Naira is losing steam now is an indication that we still have structural challenges, and that whatever improved the Naira (draining the foreign exchange) a few weeks ago was transient. I did note that Nigeria could win any battle including taking the  Naira up to N800/$, but to win the WAR it has to do things differently. Indeed, financializing Nigeria’s economy has a limitation; we need to go back to building things.

Winning the war for Naira begins with 24/7 electricity, security in the land, improved rule of law, a mindset of innovation and making things in Nigeria.

In the first quarter of 2024, Nigeria spent $1.12 billion on foreign debt service payments. In Q1 2023, it spent $801.36 million for the same service. That is another friction in the management of the nation’s scarce resources.

And companies are impacted: “Airtel Africa reported a $1.7 billion loss due to currency devaluations in Nigeria and Malawi for fiscal year 2024, despite a 20.9% growth in service revenues in constant currency.” Cadbury was not spared “Cadbury Nigeria Plc has reported a net foreign exchange loss of N11.5 billion for the first quarter, which plunged it into a loss of N7.3 billion for the quarter.” This has fueled a pessimistic view which can affect investment: from a PwC survey: “51% of CEOs in West Africa expect their local economy to decline compared to global CEOs (37%).” That is a huge problem.

Trump’s social media company is not doing it, and from the data released so far, it does seem this may not be Trump’s thing: “Trump Media and Technology Group (TMTG), the company affiliated with former U.S. President Donald Trump and operator of Truth Social, has disclosed its financial results for the first quarter of 2024. The company reported $770,500 in revenue alongside a staggering net loss of $327.6 million.”

Yes, one of the biggest challenges in business is to be popular and yet be disposable. Yes, Truth Social could be popular to MAGA conservatives but it is also disposable because MAGA conservatives can dispose of it since they want to make more money, by reaching more markets on Facebook, LinkedIn, Twitter and others.

In other words, you cannot tell me that MAGA billionaires are not advertising on the web, and spending $millions, and despite that, Truth Social is getting just $771k in three months. So, it is now business and everyone clears his or her eyes. Indeed, Truth Social must make a compelling business sense for them to drop that money. Otherwise, they will stay at the knowns even though they may not like them.

“Mister, I know we are not friends, but this is business. Let us do business and after the process, we can reactivate the un-friendliness”, he said, and you might have heard such from traders in open markets, where “enemies” do business. Lol . “I am not happy that my money is going to this woman”. Humans become rational when it comes to money, most times.

For Truth Social to find its future, it must shift equilibrium to itself; activism rarely makes a great business. People will shout and support, but when it comes to their wallets, they magically become rational species!

Trump might have mobilized people to Truth Social, but he must do something more which is adding financial value to make Truth Social a great business. The activism alone will not do it, as advertising users are rational and will look for value propositions before they will advertise in the ecosystem.

Trump Media & Technology Group (TMTG) reports $770,500 revenue and $327.6m net loss in Q1 2024

Trump Media and Technology Group (TMTG), the company affiliated with former U.S. President Donald Trump and operator of Truth Social, has disclosed its financial results for the first quarter of 2024. The company reported $770,500 in revenue alongside a staggering net loss of $327.6 million.

The financial announcement comes in the wake of TMTG’s recent debut on Nasdaq under the ticker symbol “DJT” on March 26, 2024, following its merger with Digital World Acquisition Corp. (DWAC). The Sarasota-based firm, which positions itself as a bastion for free expression in response to what it describes as “increasingly harsh censorship by Big Tech corporations,” has a market capitalization of approximately $6.6 billion at a closing price of $48.38 per share.

Trump holds about 64.9% of TMTG’s outstanding shares, making his stake worth approximately $5.5 billion. However, due to restrictions, he is barred from selling any TMTG shares for six months post-public trading initiation. His holdings include 114.75 million shares, encompassing 36 million in “earnout shares” according to the DWAC merger agreement finalized on April 26.

In the first quarter, TMTG faced $311 million in non-cash expenses, primarily from converting promissory notes and eliminating previous liabilities right before the merger’s closure. On an adjusted EBITDA basis, the company reported an operating loss of $12.1 million, half of which, $6.3 million, consisted of one-time merger-related payments. Under generally accepted accounting principles (GAAP), TMTG’s operating loss was $98.35 million for the quarter.

The company’s substantial losses were addressed in its public statement which revealed: “At this early stage in the Company’s development, TMTG remains focused on long-term product development, rather than quarterly revenue.” 

TMTG emphasized its commitment to enhancing Truth Social by introducing new features, launching a live TV streaming service, and expanding its ecosystem to eventually drive revenue and long-term value.

However, TMTG is not resting on its laurels. The company has announced plans to launch a live TV streaming platform within the Truth Social app for Android, iOS, and the web. Future phases will include stand-alone Truth Social OTT streaming apps for various devices, including home TV systems. This strategic expansion is part of TMTG’s broader vision to create a comprehensive media ecosystem.

In addition to its product development, TMTG’s “nascent advertising initiative” is expected to evolve, which could potentially become a significant revenue stream as the platform grows. As of March 31, TMTG reported cash and cash equivalents of $273.7 million, which the company claims is sufficient to fund its operations for the foreseeable future.

Auditor Changes and Shareholder Composition

TMTG appointed Semple, Marchal & Cooper as its independent registered public accounting firm effective May 4, 2024. This decision followed the SEC’s accusations against the previous auditor, BF Borgers, of engaging in “massive fraud” involving over 1,500 regulatory filings for public companies.

The group also revealed that its stock is held by over 621,000 shareholders as of April 29, 2024, with the vast majority being retail investors. This broad shareholder base indicates substantial interest and investment from the public in TMTG’s success and future prospects.

The Role of Donald Trump and Truth Social’s Growth

Since its launch in early 2022, Truth Social has not disclosed detailed user metrics. TMTG explained in its 10-Q filing that focusing on traditional KPIs like signups, ad impressions, and active user counts might detract from its strategic growth evaluation.

“At this juncture in its development, TMTG believes that adhering to traditional key performance indicators, such as signups, average revenue per user, ad impressions and pricing, or active user accounts including monthly and daily active users, could potentially divert its focus from strategic evaluation with respect to the progress and growth of its business,” the company said.

Truth Social was created after Trump was banned from major social media platforms due to allegations of inciting violence during the January 6, 2021, Capitol attack. Although Trump’s accounts have since been reinstated, he continues to prefer Truth Social for his communications.

TMTG acknowledged the importance of Trump’s influence in its filing saying: “TMTG’s success depends in part on the popularity of our brand and the reputation and popularity of President Donald J. Trump.” The company noted that any negative publicity or legal challenges involving Trump could adversely impact TMTG’s operations and growth potential.