The Capital Markets Authority (CMA) is advising people to be careful when investing their money. They have warned against investing in some schemes that are not regulated. The CMA issued this warning because they received complaints from the public about three companies: Capital Chicken, Veta Plan Chicken, and The Mall Fund.
Mr. Keith Kalyegira, the CEO of CMA, said that people had been complaining about these companies. He said, “There have been questions about the investments they are offering, so we decided to look into it.” However, he did not say what CMA would do next, but he emphasized that these investments were not authorized.
Ms. Lyn Tukei, the CMA communications and public relations manager, said that the regulator was taking action to protect investors. She mentioned that it’s their job to make sure that the capital market is fair and efficient.
Earlier this week, CMA told the public that these three companies had not received permission to offer investment contracts. The notice also said, “When investments are not regulated, investors have limited options if something goes wrong.”
However, The Mall Fund released a statement saying that there was confusion. They said that The Mall Fund and Mall Fund are different. The Mall Fund is a registered trademark of My Mall-SMC, a company formed in June 2020.
The Mall Fund, which operates at Pioneer View, specializes in agriculture, animal industry, and fisheries worldwide. They offer investment plans for broilers, sugarcane, and passion fruits, among other products. The plans cost between UGX 1 Million and UGX 100 Million, with returns of 11 percent per month for three to 12 months.
Capital Chicken also distanced itself from CMA’s accusations. They said they are a farming partnership company, not an investment firm. They partner with people, companies, and groups to farm together and share profits. They are registered as Capital Chicken SMC and run a seven-acre poultry farm in Mukono District. They use investors’ money to buy more chickens and promise a profit of 48 percent to 60 percent per month. Their investment plans range from Shs1m to Shs10m, with a maturity of five months.
Veta Plan Chicken did not respond to requests for comments.
CMA warns that because they haven’t reviewed or regulated these companies’ investment activities, people’s money is at risk. Many people in Uganda have lost a lot of money in Ponzi schemes before. Ms. Tukei said that investors should be cautious, especially when dealing with investments that are not regulated. She emphasized that without regulatory oversight, investors have limited options if they face losses or other problems.