Home Crime Police Investigate Alleged Scam by Capital Chicken; Ugandans May Have Lost sh1.6b

Police Investigate Alleged Scam by Capital Chicken; Ugandans May Have Lost sh1.6b

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police investigate alleged scam by capital chicken ugandans may have lost sh1 6b
police investigate alleged scam by capital chicken ugandans may have lost sh1 6b
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The police are actively investigating allegations of fraud linked to the company known as Capital Chicken. It is believed that Ugandans may have lost an estimated sh1.6 billion in this scheme. The company, operating in Kampala Central Division, reportedly convinced individuals to invest their money by promising returns from their “poultry farms” in Mukono District.

According to Kampala Metropolitan Police Deputy Spokesperson Luke Owoyesigyire, concerns arose when some investors experienced unusual behavior from the company’s management, including delays in transactions. On September 29, 2023, the situation escalated when the company’s office unexpectedly closed, prompting concerned citizens to report the matter to the police.

The police initiated investigations and have recorded statements from 41 victims, revealing transactions totaling sh1.6 billion. Relevant documents related to these transactions have also been recovered to aid in the ongoing investigation. The suspects in this case include Pius Wamanga Mudulo, Ernest Sempebwa, and others.

The company had promised to manage poultry farming on behalf of investors who faced limitations in terms of skills, access to land, capital, market stability, and time. Investors hoped to earn income from the chicken business while Capital Chicken handled the operations.

The police encourage anyone affected by the company or with information related to the case to come forward and cooperate with investigators. They emphasize that they are taking this matter seriously and will provide updates as the investigation progresses.

In a related development, the Capital Markets Authority (CMA) had previously issued a warning about Capital Chicken in August. They advised the public against investing with the company, stating that it had not sought regulatory approval for offering investment contracts to the public. CMA also emphasized the importance of seeking investment advice from licensed professionals and engaging in regulated investment opportunities.

In response, Capital Chicken defended its business, asserting that it operated as a farming partnership company under the Companies Act of 2012. They reassured clients that their capital was safe, citing Sanlaam insurance cover and quality breeds to ensure returns on investments.