A coordinated anti-corruption operation has resulted in the arraignment of a Kampala-based businessman over allegations of orchestrating a multi-billion shilling gold scam targeting foreign investors.
The State House Anti-Corruption Unit (SH-ACU), working jointly with the Criminal Investigations Directorate (CID) and the Office of the Director of Public Prosecutions (ODPP), presented Muhammad Ali before the Makindye Magistrates Court on charges of theft and cheating. He has been remanded in custody until May 5, 2026 as investigations continue.
Prosecutors allege that between September and October 2025, Muhammad Ali, while employed as a manager at Duck Hunters Security Company, together with accomplices still at large, defrauded Dubai-based investors of USD 3.5 million (approximately Shs 13 billion) through fraudulent gold transactions.
According to investigations, the investors travelled to Uganda in search of legitimate gold suppliers and were introduced to several dealers by Ali. The investors reportedly proceeded to purchase an initial 10 kilograms of gold valued at USD 700,000 from a company identified as Spanex Ltd.
Authorities further contend that Ali later convinced the investors to engage in a second transaction involving the purchase of 30 kilograms of gold from an individual purported to be a military officer, at a cost of USD 2.4 million.
Following the transaction, the gold consignment was reportedly tested at Azzura Refinery before being transferred to Duck Hunters Security Company for secure storage pending export to Dubai. However, the consignment subsequently went missing under unclear circumstances.
The disappearance of the gold prompted the investors to return to Uganda, where they discovered that they had allegedly been defrauded in an elaborate scheme involving fake gold and fictitious suppliers.
Investigations into the matter are ongoing, with authorities examining the role of various gold exporting companies and probing possible involvement of individuals posing as military personnel.
Law enforcement agencies have indicated that efforts are underway to apprehend additional suspects linked to the scam.
Officials emphasized that the case highlights ongoing challenges within the gold trade sector and reiterated their commitment to cracking down on fraudulent activities that undermine investor confidence and the country’s economic integrity.
