Distress and financial turmoil have gripped a section of Ugandans who invested their hard-earned money in a Ponzi scheme named “Capital Chicken.”
Police reports indicate that Capital Chicken swindled unsuspecting Ugandans of substantial sums, leaving numerous individuals and families in severe financial distress.
Capital Chicken, which has unexpectedly ceased its operations, presented itself as an agribusiness contract farming partnership enterprise. It claimed to rear poultry on behalf of investors who sought income from poultry farming but faced various constraints, including limited skills, land access, capital, market instability, and time.
The company operated from two branches, one located at Kamwokya Kankyokya Street, plot 74, and the other at Kampala Arua Park, Ben Kiwanuka Street, Nyumba Kubwa Building, level 2, office no. 77-78. While it was involved in selling chicken meat, its primary focus was on farming on behalf of investors.
Capital Chicken organized its poultry farming in clusters, with investment packages structured as follows:
Bronze Farm package: Ranging from Shs1M to 2.99M, offering a 48 per cent profit paid after 5 months with an option to reinvest. Silver Farm package: Shs3M to 4.99M, providing a 60 per cent profit paid after 5 months with an option to reinvest.
Gold Farm package: Shs5M to 9.99M, offering a 60 per cent profit paid after 5 months with an option to reinvest. Platinum Farm packages: Starting from Shs10M and above, providing a 60 per cent profit paid after 5 months with an option to reinvest.
Super Platinum Farm package: Shs50M and above, with a 10 per cent profit per month paid after 1 year, renewable.
The company had reportedly been in business for two years, gaining prominence through consistent advertising in various media outlets across the country.
However, victims of the scheme began to suspect foul play when they attempted to collect their profits and discovered that all the offices were empty, with no sign of the owners.
Kampala Metropolitan Police Deputy Spokesperson, ASP Luke Owoyesigyire, indicated that the situation raised red flags when visitors were repeatedly asked to “come back later” during office visits.
On September 29, 2023, the situation escalated when individuals arrived at the office only to find it unexpectedly closed. Concerned citizens promptly reported the matter to the police.
ASP Owoyesigyire stated, “The Kira Road Police Central Police initiated investigations under case numbers GEF 38/2023 and GEF 39/2023. Statements have been recorded from 41 victims, shedding light on transactions totalling approximately 1,641,376,000 Ugandan Shillings. Furthermore, relevant documents pertaining to these transactions have been recovered to aid in our ongoing investigation.”
Currently, the owners of the company, identified as Wamanga Pius, Sempebwa Ernest, and others, are on the run. ASP Owoyesigyire assured the public that the matter was being treated with utmost seriousness, encouraging anyone with information related to the case to cooperate with investigators.
In response to these allegations, Capital Chicken’s management used social media to defend their actions, stating that the company had been forced to temporarily close due to a Capital Markets Authority News Release discrediting them approximately two weeks ago, which resulted in the freeze of their accounts by the FIA, making it impossible to continue operations.
Despite the defence, partners of the company remain in deep distress as investigations continue. They hope for justice and restitution.
This situation however underscores the need for continuous efforts to educate the public about financial scams and strengthen regulatory measures to prevent such schemes from preying on unsuspecting investors.
The Bank of Uganda also encourages vigilance among Ugandans, urging them to seek reputable financial advice and report suspicious investment schemes to safeguard their financial well-being and the stability of the nation’s financial sector.
Do you have a story in your community or an opinion to share with us: Email us at Submit an Article
