Kampala, Uganda | By Michael Wandati | In the aftermath of the Capital Chicken scandal, where Ugandans suffered losses exceeding Shs 5 billion in a fictitious chicken farming scheme, the police are issuing a cautionary alert regarding eight additional Ponzi schemes.
Fred Enanga, the police spokesperson, highlighted the concerning trend, emphasizing the likelihood of Ugandans falling victim to financial scams. One example he cited is the Cash Mula scheme, where users deposit shs 17,000, encourage others to join, and earn commissions in a classic pyramid scheme fashion, rendering the initial deposit unrecoverable.
“For instance, under Cash Mula, a user deposits Shs 17,000 and is encouraged to invite other users and earn a commission from users under them, which is a classic pyramid scheme tactic. The user cannot recover or withdraw their money,” Enanga said.
Enanga identified the eight active ponzi schemes as Veta Plan, Mall Fund, Great Wealth Youth Platform Africa, Cash Mula, Pio Crypto, Premium Clusters, Contract Kapital, and Pacs Capital Limited. Some of these schemes are already under investigation by the Criminal Investigations Directorate (CID) and the Capital Markets Authority.
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The police spokesperson urged the public to exercise caution, emphasizing that these fraudulent schemes often entice individuals with appealing promises, establish a network of members, and subsequently freeze accounts, defrauding unsuspecting participants.
“These schemes follow a pattern, they lure individuals with enticing promises, gather members, and subsequently freeze accounts, defrauding unsuspecting participants,” Enanga warned.
To safeguard against such scams, Enanga advised Ugandans to invest only in regulated ventures endorsed by the Capital Markets Authority or other relevant regulators, including the Bank of Uganda.
