Police have said that 41 people have reported losing more than Shs1.6 billion in investment to Capital Chicken after it closed its operations last week.
Kampala Metropolitan Deputy Police spokesman Luke Owoyesigyire said the affected members run to police after being tossed by the company managers at their offices on Kanjokya Street when they went to inquire about the fate of their money.
“It is alleged that between the years 2021 and 2023, Capital Chicken operated an office along Kanjokya Street in Kampala Central Division, where individuals entrusted their money for investment, with the promise of returns,” he said.
Initially, Owoyesigyire said, this operation appeared to run smoothly, but recently, concerns arose as some members encountered unusual behaviour from the management.
“Reports indicated that members were being asked to “come back later” when visiting the office for transactions. On September 29, 2023, the situation escalated when individuals arrived at the office to find it unexpectedly closed,” he said.
In light of these developments, concerned citizens promptly reported the matter to the police. Statements have been recorded from 41 victims, shedding light on transactions totaling approximately Shs1.641,376,000. Furthermore, relevant documents pertaining to these transactions have been recovered to aid in our ongoing investigation,” he said.
Owoyesigyire revealed the primary suspects in this case as Wamanga Pius and Sempebwa Ernest, among others.
“We want to assure the public that this matter is being treated with utmost seriousness. Our investigators are diligently working to uncover the facts surrounding this alleged fraud,” he said.
“We encourage anyone who has been affected by the company or has information related to this case to come forward and cooperate with our investigators. As the investigation progresses, we will continue to provide updates to keep the public informed,” he added.
The police revelation comes after Capital Markets Authority, which oversees investment schemes in the country, dismissed claims that they were behind the closure of Capital Chicken. They said instead the company was a subject of a police inquiry.
The management of Capital Chicken Limited on Tuesday said it temporarily closed its operations after the Financial Intelligence Authority (FIA) froze their accounts.
In a statement issued on Tuesday, 03 October 2023, Capital Chicken said this was after Capital Markets Authority discredited their operations.
On September 18, 2023, the Capital Markets Authority (CMA) clarified that Capital Chicken Limited, the Mall Fund Limited and Veta Plan Chicken had not sought the approval of the Authority to offer investment contracts to the general public.