Highlights:
- Deputy Speaker Calls for Action on Ponzi Schemes Amid Capital Chicken Scam
- Ugandan Authorities Investigate Ponzi Schemes Defrauding Citizens
- Concerns Grow Over Financial Scams Targeting Unsuspecting Ugandans
In a parliamentary session held on Wednesday, October 25, 2023, Deputy Speaker Thomas Tayebwa addressed the issue of Ponzi schemes in Uganda. He received a petition that contained details of citizens who fell victim to a fraudulent poultry rearing scheme known as ‘Capital Chicken.’ This scheme, purportedly based on Kanjokya Street in Kampala, promised investors a 15% monthly return on their investments.
Tayebwa expressed his concern about the uncontrolled growth of Ponzi schemes in the country, particularly referencing the Capital Chicken case, where over sh2 billion was reportedly lost. He emphasized the need for tighter financial regulations to prevent such fraudulent activities.
During his remarks, Tayebwa called upon the Minister of Finance to examine the situation and provide guidance to the nation. He urged the government to take action against unscrupulous actors who collect funds from people and then disappear, highlighting the importance of mechanisms for tracking them down.
In a related development, Ugandan authorities arrested Yinghe Chen, a 43-year-old Chinese citizen, and four others—Mary Awori, Akoth Justine Oboth, Achola Mary, and Biira Shamim. They were accused of deceiving Ugandans through a fraudulent football betting scheme called ‘BLQ.’ Participants in this scheme were given the freedom to choose fixtures and were promised earnings even when they lost.
The arrest of these individuals followed a forensic investigation conducted by the national cyber task force, which included the Criminal Investigations Department (CID), Internal Security Organization (ISO), and the Bank of Uganda (BOU). It is estimated that approximately 6,000 Ugandans lost over sh4.5 billion under unclear circumstances due to the BLQ scheme.
Deputy Police Spokesperson Polly Namaye disclosed that the ‘Acclaim BLQ Sports SMC’ operated under the slogan ‘You lose, you win,’ which is believed to have attracted many people to the online betting company. The concerns raised by these Ponzi schemes have prompted calls for more stringent financial regulations to protect Ugandan citizens from such fraudulent activities.
