Ugandan police are intensifying their efforts to uncover potential fraud involving the company known as Capital Chicken. It is believed that many Ugandans may have lost around sh1.6 billion due to the alleged deceitful practices of the company’s directors. Capital Chicken purportedly enticed individuals to invest in what they claimed were poultry farms located in Mukono District.
According to Kampala Metropolitan Police Deputy Spokesperson Luke Owoyesigyire, preliminary findings suggest that between 2021 and 2023, Capital Chicken operated an office in Kamwokya, Kampala Central Division, where people entrusted their money with the promise of returns on investment. Initially, the operation seemed to run smoothly, but concerns arose when some investors experienced unusual behavior from the management. Reports indicated that visitors were often asked to return later for transactions.
The situation escalated on September 29, 2023, when individuals who visited the office found it unexpectedly closed. Concerned citizens promptly reported the matter to the police, leading to investigations under case numbers GEF 38/2023 and GEF 39/2023.
So far, statements have been taken from 41 victims, revealing transactions totaling sh1.6 billion. Relevant documents related to these transactions have been recovered to support the ongoing investigation. Among the suspects are Pius Wamanga Mudulo, Ernest Sempebwa, and others.
The company had solicited funds from investors, promising to rear chickens for them. However, they closed the firm and disappeared with the money.
Capital Chicken’s website described their business as an agribusiness contract farming partnership enterprise that reared poultry on behalf of individuals who lacked the skills, land, capital, market access, or time to do so themselves.
The scheme targeted corporates looking to supplement their income by investing in the chicken business and reaping profits without actively managing it.
Police have urged anyone affected by the company or possessing relevant information to cooperate with their investigators. They are treating the matter with utmost seriousness and will provide updates as the investigation progresses.
In August of this year, the Capital Markets Authority (CMA) issued a red alert about Capital Chicken, warning the public against the company. The CMA emphasized that Capital Chicken had not sought regulatory approval to offer investment contracts to the public, urging people to engage in regulated investment opportunities.
Capital Chicken responded to the CMA’s statement, asserting that they were a farming partnership company operating under the Companies Act of 2012 and were running a legitimate business. They claimed to have insurance coverage and quality breeds to ensure returns for their clients.
