The Capital Markets Authority (CMA) has intensified its crackdown on unlicensed investment schemes after unearthing a major fraud involving Veta Plan Chicken, a company that falsely lured Ugandans into poultry-related investment contracts with promises of passive income.
The fraud, which cost investors over UGX 757 million, is one of the largest investment scams CMA has flagged in recent years.
In a public warning issued on September 18, 2023, CMA cautioned the public against Veta Plan Chicken and other unapproved schemes.
The company had been actively promoting its services on social media and through its website, targeting unsuspecting investors with seemingly lucrative returns in the poultry value chain.
Investigations by CMA revealed that Veta Plan Chicken had been operating without regulatory approval, in violation of the Capital Markets Authority Act.
To safeguard investor funds, CMA acted swiftly by freezing the company’s bank accounts and launching recovery efforts.
Although Veta Plan Chicken initially pledged to refund the funds, the company later abandoned its commitment and ceased cooperation.
This prompted CMA to escalate the matter to the Uganda Police, which opened a criminal case against the company’s directors and employees.
The pursuit of justice reached a turning point in June and July 2025, when law enforcement officials apprehended three suspects in separate operations across the country.
Lugeleka Erric Taremwa, one of the directors, was arrested at the Uganda-Kenya border in Busia on June 30. Days later, on July 2, the second director, Eve Gershom Tania, and employee Bob Anthony Tumwebaze were arrested in Kampala.
That same day, all three suspects were arraigned before the Buganda Road Court. They are now facing 21 charges, including offering securities to the public without CMA’s approval, contrary to Sections 106 and 146(2) of the CMA Act Cap 64, and obtaining money by false pretenses under Sections 284 and 285 of the Penal Code Act Cap 128.
The prosecution is being led by Ivan Kyazze from the Office of the Director of Public Prosecutions (ODPP) and Joseph Magala Haumba, a prosecutor delegated by the CMA.
The trial represents a key milestone in enforcing regulatory compliance and protecting the integrity of Uganda’s capital markets.
“This case is a stark reminder for the public to always verify the legitimacy of investment opportunities,” said Lyn Tukei, Communications and Public Relations Manager at CMA.
“We encourage the public to consult licensed investment advisers and refer to the CMA website for a comprehensive list of approved investment providers,” she continued.
The Capital Markets Authority of Uganda, established under the CMA Act of 1996, is tasked with regulating and developing the capital markets industry.
Among its core functions are approving public securities offerings, promoting investor education, and ensuring the transparency and integrity of Uganda’s financial markets.
CMA’s broader mandate includes protecting investors, implementing international best practices, and operating the Investor Compensation Fund.
In recent years, the Authority has stepped up enforcement actions to combat fraudulent schemes that threaten public trust in investment opportunities.
This high-profile crackdown sends a clear signal that investment fraud will not go unpunished. As more Ugandans look to grow their wealth through capital markets.
CMA continues to play a crucial role in ensuring that such growth is built on transparency, legitimacy, and the rule of law.
Credit: Capital Markets Authority