A Kampala-based businessman, Muhammad Ali, has been remanded by the Makindye Magistrates Court over his alleged role in a sophisticated fake gold scam that defrauded foreign investors of more than UGX 13 billion.
Ali was arraigned following a joint investigation by the Inspectorate of Government, Criminal Investigations Directorate, and the Office of the Director of Public Prosecutions. He faces charges of theft and obtaining money by false pretence and has been remanded until May 5, 2026.
According to court records, the alleged fraud occurred between September and October 2025, when Ali, then a manager at Duck Hunters Security Company, worked with accomplices still at large to orchestrate the scheme.
Investigators say the suspect targeted Dubai-based investors who had travelled to Uganda seeking legitimate gold suppliers. Ali reportedly introduced them to various dealers and facilitated an initial transaction involving 10 kilograms of gold worth USD 700,000 through Spanex Ltd. Authorities say this first deal appeared genuine and helped build the investors’ trust.
However, the prosecution alleges that Ali later persuaded the investors to enter a second, much larger deal involving 30 kilograms of gold valued at USD 2.4 million. The gold was allegedly linked to a supposed military seller, a claim that added credibility to the transaction.
Before completing the purchase, the investors reportedly verified the gold at Azzura Refinery, where it passed testing. The consignment was then stored at Duck Hunters Security Company pending export to Dubai.
It is at this point, investigators say, that the scheme unravelled.
“The gold later disappeared under unclear circumstances,” prosecutors told court, adding that the investors only discovered the alleged fraud after returning to Uganda to follow up on the shipment.
The disappearance of the consignment has since triggered a broader investigation into Uganda’s gold trade, with authorities probing several companies and possible involvement of individuals linked to security operations.
Law enforcement agencies say efforts are ongoing to track down additional suspects believed to have played a role in the scam.
The case underscores growing concern over fraudulent gold deals targeting foreign investors in Kampala and beyond, as Uganda’s lucrative mineral trade continues to attract both legitimate business and criminal networks.
Ali remains in custody as investigations continue.