CID probes theft of Shs1.7b from Capital Chicken clients 

“We take fraud very seriously. We are carrying out joint investigations against these groups who are fleecing money from people. They have different dimensions. Some have external players, but whenever we get information, we investigate them,” Mr Magambo said yesterday.
On Thursday, Capital Chicken closed operations without informing their clients, but later issued a statement after the victims complained on social media about their inability to access the scheme’s office.

At least 43 clients of Capital Chicken have reported to the police.
According to the file at Kira Road Police Station, more than Shs1.6b of clients’ money was lost. At Jinja Road Police Station, one client reported that he lost more than Shs100m while another lost Shs52m.
In a statement on their website, Capital Chicken stated that they were temporarily closed because the Financial Intelligence Authority froze funds on their accounts. 

“We have been forced to temporarily close following a Capital Markets Authority (CMA) news release discrediting us about two weeks ago and the subsequent freeze of our accounts by the FIA that has made it impossible for us to run normal operations,” Capital Chicken statement read in part.

“We call upon our farming partners to be calm as we navigate the turbulence created by the various agencies who should have instead engaged us on regulatory issues if indeed, the intention was to streamline our operations,” the statement added. 

The executive director of Financial Intelligence Authority, Mr Samuel Were Wandera, confirmed yesterday that they have halted the accounts of Capital Chicken pending an investigation by the police and CMA. 
“We have halted their accounts to support the investigations,” Mr Wandera said, adding that the details are with the police and CMA that is leading the investigations.

The CMA, which had earlier warned members of the public about the investment companies that aren’t regulated by them as per the law, issued a statement yesterday stating that they are aware of Capital Chicken’s issues. 

“The CMA has not temporarily closed Capital Chicken Limited (SMC) as alleged. This matter is now being handled by the Uganda Police Criminal Investigations Directorate,” CMI statement indicated. 
Several other similar companies dealing in agricultural investments have been calling on investors to invest their money in farming projects that they are managing. 

Investigators say the fraudsters have been using different schemes in a range of sectors to fleece their victims of their money. 
Pyramid scheme fraudsters became popular in Uganda in late 1990s when they created savings and loan groups like Dutch International and Caring for Orphans, Widows and the Elderly. When they accumulated savings from their victims, they would disappear with it.

However, it is difficult for the victims to recover money or the State to punish the suspects. The suspects are often charged with embezzlement or operating a financial institution without a licence. 
For the last 20 years, judges have been urging that the clients can’t claim that their money was embezzled when they aren’t the owners or directors in the pyramid scheme company.

In several cases, the suspects have been able to elude jail by exploiting loopholes in the laws to get acquittals in court. 
Mr Magambo said members of the public should take precaution by inquiring from regulators before they invest in any scheme.