A Kampala fake businessman has been remanded to prison over an alleged multi-billion shilling gold scam that targeted foreign investors in a scheme investigators describe as elaborate and well-coordinated.
Muhammad Ali was on Wednesday arraigned before the Makindye Magistrates Court and charged with theft and cheating.
The court heard that Ali, who previously worked as a manager at Duck Hunters Security Company, allegedly masterminded a fraudulent operation that fleeced Dubai-based investors of $3.5 million (about Shs13 billion). He was remanded until May 5, 2026.
According to the Anti-Corruption Unit under State House, which worked jointly with the Criminal Investigations Directorate (CID) and the Office of the Director of Public Prosecutions (ODPP), the alleged offences occurred between September and October 2025.
Prosecution contends that Ali posed as a well-connected facilitator in Uganda’s lucrative gold trade and introduced the investors to several purported suppliers. Trust was initially built when the investors successfully purchased 10 kilogrammes of gold valued at $700,000 from a company identified as Spanex Ltd.
However, investigators say the scheme escalated when Ali convinced the investors to enter a second, much larger transaction involving the purchase of 30 kilogrammes of gold worth $2.4 million from an individual he claimed was a military officer.
Court documents indicate that after acquiring the 30kg consignment, the investors sought verification at Azzura Refinery, where the gold was reportedly tested. The consignment was then transported to Duck Hunters Security Company for safekeeping pending export to Dubai.
It was at this stage, prosecutors say, that the deal unraveled.
“The gold consignment mysteriously disappeared from the storage facility,” a source close to the investigation said. “When the investors returned to Uganda to follow up, they discovered they had been defrauded.”
Authorities believe the operation may involve a wider network of individuals, including possible accomplices within gold trading and security circles. Investigations are ongoing to trace the missing consignment and apprehend other suspects still at large.
Uganda has in recent years faced scrutiny over fraudulent gold deals targeting foreign investors, with officials warning of sophisticated scams exploiting the country’s growing reputation as a regional gold trading hub.
The Anti-Corruption Unit has urged investors to conduct thorough due diligence and engage only licensed dealers when participating in gold transactions.
Ali remains in custody as investigations continue.
