Ugandan Businessman Remanded Over UGX 13 Billion Gold Scam

A Ugandan businessman has been charged with theft and cheating after anti-corruption investigators found he allegedly defrauded Dubai-based investors of USD 3.5 million through a series of fake gold deals.

Muhammad Ali was arraigned before the Makindye Magistrates Court following a joint operation by the State House Anti-Corruption Unit, the Criminal Investigations Directorate, and the Office of the Director of Public Prosecutions. He has been remanded until May 5, 2026. Others believed to be involved in the scheme remain at large.

According to investigators, the fraud took place between September and October 2025, while Muhammad was working as a manager at Duck Hunters Security Company in Kampala. A group of investors had travelled to Uganda in search of gold suppliers and were introduced by Muhammad to various companies he presented as legitimate dealers.

In the first transaction, the investors purchased 10 kilograms of gold at USD 700,000 from one of the recommended companies, Spanex Ltd. The deal appeared to go smoothly, which investigators believe was used to build the investors’ confidence ahead of a far larger transaction.

Muhammad then persuaded the investors to buy 30 kilograms of gold from a person he described as a military officer, at a price of USD 2.4 million. The investors went ahead with the purchase. The consignment was subsequently tested at Azzura Refinery and then taken to Duck Hunters Security Company, where it was to be stored until it could be exported to Dubai.

The gold never left Uganda. The entire consignment disappeared while in storage, and when the investors returned to Uganda to follow up, they discovered they had been defrauded out of their money.

Investigators are currently pursuing leads into several gold exporting companies and are also looking into possible military involvement in the scam. Arrests of additional suspects are expected as the investigation progresses.