Big Story: Businessman Netted Over UGX 13 Billion Fake Gold Scam | See How They Tricked Investors!

By Swift Reporter

A businessman, Muhammad Ali, has been remanded by the Makindye Magistrates Court over allegations linked to a multibillion-shilling fake gold deal involving foreign investors.

Ali was arraigned following investigations led by the Inspectorate of Government in collaboration with the Criminal Investigations Directorate (CID) Uganda and the Office of the Director of Public Prosecutions Uganda. He faces charges of theft and cheating and has been remanded until 5 May 2026.

Court documents and investigations indicate that between September and October 2025, Ali, while working as a manager at Duck Hunters Security Company together with others still at large, allegedly defrauded Dubai-based investors of USD 3.5 million, approximately UGX 13 billion, through fraudulent gold transactions.

The investors reportedly came to Uganda in search of legitimate gold suppliers and were introduced to various dealers by Ali. They initially purchased 10 kilograms of gold worth USD 700,000 from Spanex Ltd, a transaction that appeared legitimate at the time.

However, investigators allege that Ali later convinced the investors to enter a second deal involving 30 kilograms of gold, purportedly sold by a military officer, at a cost of USD 2.4 million. The investors proceeded with the transaction after having the gold tested at Azzura Refinery.

The consignment was then stored at Duck Hunters Security Company pending export to Dubai. According to prosecution, the gold later disappeared under unclear circumstances, prompting the investors to return to Uganda and discover they had been defrauded.

Authorities say the disappearance of the consignment triggered a wider investigation into several gold export companies and possible involvement of security-linked actors. The probe is ongoing as law enforcement agencies work to identify and arrest additional suspects believed to be connected to the scam.

The case has added to growing concerns over gold-related fraud schemes targeting foreign investors in Uganda, a sector that has increasingly come under scrutiny from anti-corruption and security agencies.