The Capital Markets Authority has confirmed the arrest of two directors and an employee of “Vetaplan Chicken” following a major two-year investigation into an alleged investment scam that swindled over UGX 757.5 million (approx. $200,000 USD) from unsuspecting members of the public.
That investigation reached a head last week with the arrest of Tanzanian national, 42-year-old Lugeleka Eric Talemwa, one of the company’s directors.
Talemwa was arrested at the Uganda-Kenya border in Busia on June 30, amid what authorities believe was an attempt to flee the country.
Two days later, the second director, 39-year-old Eve Gershom Tania, and 30-year-old Bob Anthony Tumwebaze, were arrested in Kampala.
The trio appeared before Buganda Road Chief Magistrate Ronald Kayizzi on Thursday.
They face 21 counts of obtaining money by false pretence and one count of offering securities without a licence, in violation of the Penal Code Act and Capital Markets Authority regulations.
The arrests aided by Uganda Police, follow a dramatic probe initiated by the Capital Markets Authority (CMA) on September 18, 2023, where it issued a public “caveat emptor” warning and explicitly named Veta Plan Chicken as a firm peddling unlicensed investment schemes.
Despite this, the company continued operations, exploiting regulatory loopholes and public ignorance about capital markets.
The firm, operating from Semawatta Road in the city suburb of Ntinda, had positioned itself as a gateway for urban investors to earn “passive income” through the poultry value chain.
What began as a seemingly innocent agribusiness opportunity turned out to be an elaborate ploy dressed up as a poultry investment venture. Operating under the guise of “Veta Plan Chicken,” the company lured hundreds of Ugandans with the promise of “passive income” through the poultry value chain.
Through a well-coordinated digital campaign—on social media platforms such as X (formerly Twitter) and its website—the firm claimed it was revolutionizing poultry farming by letting urban clients “invest in chicks” and “earn returns from broiler sales.”
But behind the slick marketing was an illegal securities scheme—one that had never been registered or approved by the CMA.
However, CMA investigators say the company was operating outside the law, and had not received the mandatory approval to offer securities to the public, as required by Uganda’s Capital Markets Act.
In its findings, CMA revealed that the company collected over UGX 757.5 million from the public through what amounted to investment contracts disguised as poultry partnerships.
Irene Mwoyogwona: Beyond the Numbers – How Pride Bank's Award-Winning CFO Combines Profitability and Social ImpactWhile the firm initially made overtures to cooperate with the regulator and committed to refunding investors, it later backtracked and cut off communication.
The CMA subsequently froze the company’s known bank accounts and escalated the matter to the Uganda Police, prompting a criminal investigation.
The prosecution is being handled by Ivan Kyazze from the Office of the Director of Public Prosecutions (ODPP), alongside CMA-delegated prosecutor Joseph Magala Haumba.
According to investigators familiar with the case, Vetaplan Chicken never operated a real poultry production chain capable of supporting the promised returns.
Instead, the model resembled a classic Ponzi scheme, relying on new investor funds to pay off earlier participants.
Many victims, some of whom invested their life savings, are still hoping for recovery—though authorities warn that much of the money may already have been dissipated.
Speaking after the arrests, CMA Communications and Public Relations Manager Lyn Tukei urged Ugandans to exercise caution when approached with investment opportunities that promise high returns with little risk.
She emphasized the importance of verifying that service providers are licensed by the CMA, and pointed the public to the regulator’s website for a list of approved investment advisers.
Tukei reiterated that while the CMA continues to take action against illegal operators, the public must also remain vigilant, especially in a climate where digital platforms make it easy for fraudsters to market sophisticated scams.
“We continue to urge members of the public to seek investment advice from licensed professionals and avoid falling victim to investment fraud,” she said.
This case, while shocking in scale, is not isolated. It highlights broader regulatory and investor education challenges in Uganda’s growing but fragile investment ecosystem.
With the case now in the hands of the courts, questions remain about whether victims will recover their funds, and whether a decisive precedent will be set to deter future fraud.
