A Kampala businessman, Muhammad Ali, has been remanded to prison after being re-arraigned before the Makindye Chief Magistrate's Court on charges of forgery and uttering false documents.
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), on Friday afternoon re-arraigned Ali over allegations that he used forged documents to obtain bail while facing prosecution in the principal case involving the alleged USD 3.5 million (approximately Shs 13 billion) fake gold scam targeting Dubai-based investors.
He was remanded until July 31, 2026.
According to the prosecution, the principal case arises from allegations that between September and October 2025, Ali, while employed as a manager at Duck Hunters Security Company, together with accomplices who are still at large, allegedly defrauded Dubai-based investors of USD 3.5 million (approximately Shs 13 billion) through fraudulent gold transactions.
Investigations indicate that the investors travelled to Uganda in search of legitimate gold suppliers and were introduced to several dealers by Ali.
They reportedly purchased an initial 10 kilograms of gold valued at USD 700,000 from Spanex Ltd before being persuaded to enter into 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.
The prosecution further alleges that after the transaction, the gold consignment was tested at Azzura Refinery before being transferred to Duck Hunters Security Company for secure storage pending export to Dubai. However, the consignment reportedly disappeared under unclear circumstances.
The disappearance of the gold prompted the investors to return to Uganda, where they allegedly discovered they had been defrauded in an elaborate scheme involving fake gold and fictitious suppliers.
SH-ACU has since developed key leads on other conspirators linked to the alleged gold fraud.
The suspects are currently on the run, and efforts to apprehend them are ongoing.
All suspects will be arraigned before court upon arrest.
Investigations into the matter remain ongoing, with authorities examining the role of various individuals and entities linked to the alleged fraud as part of efforts to bring all those involved to justice.
