In a recent report, it has been revealed that Capital Chicken, a self-proclaimed agribusiness contract farming organization, used social media to attract unsuspecting Ugandans into fraudulent agribusiness partnerships. The scheme promised significant returns on investment through poultry farming, with investments ranging from Shs1 million to Shs10 million, maturing in five months.
The victims, such as Mr. Rogers Ssegawa and Ms. Maria Nakanwagi, invested Shs30 million in this scheme but were left in the lurch when Capital Chicken abruptly closed its operations on September 29. They were among many others who suffered losses due to this deceptive scheme.
The victims shared their experiences, revealing that they were misled by the company’s promises and were met with various obstacles when trying to access their investments. Some individuals were even coerced into reinvesting their money, exacerbating their losses.
The Capital Markets Authority (CMA) issued a warning in September, cautioning investors against engaging in unregulated investment activities. Capital Chicken distanced itself from CMA’s accusations, asserting that it operated as a farming partnership company and not an investment firm.
However, CMA clarified that Capital Chicken (SMC) Limited was not authorized to offer investment contracts to the public and is currently under police investigation. The police have recorded statements from 41 victims, shedding light on transactions totaling approximately Shs1,641,376,000. Pius Wamanga and Ernest Sempebwa, associated with Capital Chicken, have been identified as primary suspects in the case.
Capital Chicken responded to the growing social media complaints by assuring its clients that their capital was safe, citing insurance coverage and quality breeds. Nevertheless, the company’s office has been closed, and employees claim that they too fell victim to the scheme, going months without pay.
This incident is not the first Ponzi scheme to affect Ugandans, as similar scams have left individuals with significant financial losses in the past. It highlights the need for increased vigilance and regulation to protect investors from such fraudulent schemes.