BY AARON AINOMUGISHA. Capital Chicken, an “investment scheme” that targeted mostly corporates who were interested in investing in poultry but didn’t want to directly get involved in the business, has fleeced Ugandans of billions of money in another mega scandal as Ugandans continue to lose trillions in Ponzi schemes.
“We are an agribusiness contract farming partnership enterprise who rear poultry on behalf of individuals who wish to earn an income out of poultry farming but are limited by a number of factors including but not limited to limited skills, no access to land, insufficient capital, lack stable market and time,” the company’s website reads.
Capital Chicken was headquartered at Plot 74, Kanjokya Street in Kamwokya and another branch at Nyumba Kubwa on Ben Kiwanuka street all in Kampala, where they largely based to tell investors that they had a farm in Mukono from where they allegedly reared the chicken, showing photos depicting a poultry farm.
The company welcomed investments between shs1 million to infinity for individuals whereas there was also an allowance of investing as a group by pooling resources where at the end of every month one would get profits amounting to 15% of their total investment. For example, if one invested shs10 million, they would be earning shs1.5 million every month which would accumulate to shs6 million at the end of the five months.
“I invested shs3million in Capital Chicken and twice, I was able to get shs1.8 million after the end of my five-month contract. I was expecting to get money on the third time,” a victim who preferred anonymity lamented.
For the company that started around 2022, members trusted it so much having invested and got paid more than twice. The company also welcomed groups like SACCOs to invest in it as a quick way to make profits but also retain their capital without incurring losses. It also targeted Ugandans in the diaspora, especially those working in the Middle East.
RED FLAGS AND RED ALERT
In September 2023, there was a red alert to “investors” about Capital Chicken. The Capital Markets Authority issued a statement warning that the company was not regulated by them.
In caveat emptor, the statutory body responsible for regulating and promoting the development of capital markets in Uganda said it had received various inquiries seeking guidance on the widely publicized “investment opportunities” by among others, Capital Chicken Limited but warned the public against the company.
“The general public is hereby advised that the said entities have not sought the approval of the authority to offer investment contracts to the general public. It is important to note that in the absence of regulatory oversight, investors in unregulated investment activities have limited recourse in the event of unfair treatment, loss or other challenge faced in their investment journey,” CMA said in a statement.
“Accordingly, members of the public are urged to participate in investment opportunities approved or regulated by CMA or any other relevant regulator, and are further urged to seek investment advice from licensed investment advisors or other legitimate professional in order to make sound investment decisions and avoid being a victim of investment fraud.”
CAPITAL CHICKEN RESPONDS
In a statement released the following day, Capital Chicken broke its silence about the caveat emptor by the Capital Markets Authority.
“We would like to clarify that Capital Chicken SMC LTD is a farming partnership company operating under the Companies Act of 2012 as we explain in numerous inquiries about us pulling resources together in partnership. We would like to assure our clients that we are running a business and their capital is safe with us as exhibited with our Sanlaam insurance cover and good quality breeds that ensure proper return rates,” management of Capital Chicken said in an 18, September, 2023 statement.
SCANDAL ESCALATES
Since August 2023, Capital Chicken had started experiencing hiccups where investors didn’t receive their interest at the end of the contracts.
“When the contract expired, they called me to go and renew my contract after which I would receive my interest. Whereas the money was supposed to come in two weeks, a month elapsed and there was nothing,” a victim of the scam narrated.
Insisted on getting her interest paid after visiting the company offices in Kamwokya, she was told there were challenges with suppliers of chicken but the money was coming soon.
“By the time the company closed its offices, they were no longer picking my calls and sometimes their known phone numbers were off,” she added.
PAST AND SIMILAR SCAMS
This comes barely a year after BLQ, a sports betting scam fleeced Ugandans of billions of shillings before vanishing in thin air. The victims have never got justice, as of today Wednesday, October 4, 2023.
Similar scams in the past included World Global Mobile Network that operated in 2012 used Mobile Network Technology via voice over internet protocol technology like Skype to market its membership strategy, where affiliates were asked to purchase a package and have access to global mobile network simcard which could allow you make calls and SMSs.
Other past Ponzi and pyramid schemes that left Ugandans crying after losing trillions of shillings; Telex Free, Adfast Inc, One Thor, Amazon traders, World Ventures, Viral Angels, Prosperity club, Global finance, D9 Club, One Coin, DAG Coin, First Coin, Bux Coin, Dunamis coin and Alliance in Motion-AIM Global, etc.
In March 2020, Nakawa Court dismissed a case in which Development Channel ponzi scheme director, Charles Lambert Nwabuikwu gave false information to the public before many Ugandans lost billions in this scam. Sources indicate that Development Channel teams later bribed most online media outlets to delete all the negative stories exposing the scheme’s scandals.
CURRENT SITUATION
In another statement released by Capital Chicken on October 3, 2023, the company explained that it has been forced to temporarily close after freezing of its bank accounts by the Financial Intelligence Authority-FIA. “Like a phoenix, Capital Chicken shall raise again,” the statement added.
The police deputy spokesperson for Kampala Metropolitan Area, Luke Owoyesigire has today released a statement
The territorial Police at Kira road would like to provide an update on an ongoing investigation into alleged fraudulent activities involving a company known as CAPITAL CHICKEN.
It is alleged that between the years 2021 and 2023, CAPITAL CHICKEN operated an office along Kanjokya Street in Kampala Central Division, where individuals entrusted their money for investment, with the promise of returns. Initially, this operation appeared to run smoothly, but recently, concerns arose as some members encountered unusual behavior from the management.
Reports indicated that members were being asked to “come back later” when visiting the office for transactions. On September 29, 2023, the situation escalated when individuals arrived at the office to find it unexpectedly closed. In light of these developments, concerned citizens promptly reported the matter to the police.
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 totaling 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 primary suspects in this case are identified as; Wamanga Pius (director), Sempebwa Ernest and others. We want to assure the public that this matter is being treated with utmost seriousness.
Our investigators are diligently working to uncover the facts surrounding this alleged fraud. We understand the concerns of the victims and the public, and we are committed to bringing this investigation to a swift and just conclusion.
We encourage anyone who has been affected by the company or has information related to this case to come forward and cooperate with our investigators. As the investigation progresses, we will continue to provide updates to keep the public informed.
I’m always fascinated by such informative posts, and your latest posts are always fascinating read. The way you simplify complex concepts is truly commendable. Keep up the stellar work! By the way I am a Senior Researcher @ (Clickmen™)
I appreciate the well-crafted content. It was truly an enjoyable read. I’m looking forward to even more engaging posts from you! By the way, do you have any preferred means of communication? By the way I am a Senior Researcher @ (Clickmen™)