KAMPALA, Uganda — A businessman has been remanded to prison over his alleged involvement in a multi-billion gold scam that defrauded foreign investors of millions of dollars.
Muhammad Ali was arraigned before the Makindye Magistrates Court by a joint team comprising the State House Anti-Corruption Unit, Criminal Investigations Directorate Uganda, and the Office of the Director of Public Prosecutions Uganda. He faces charges of theft and cheating and has been remanded until May 5, 2026.
Prosecution alleges that between September and October 2025, Ali, who was working as a manager at Duck Hunters Security Company, together with accomplices still at large, orchestrated a fraudulent scheme that led to the loss of USD 3.5 million (approximately UGX 13 billion).
The victims, Dubai-based investors, had travelled to Uganda in search of gold suppliers. They were reportedly introduced to various dealers by the accused and initially purchased 10 kilograms of gold worth USD 700,000 from Spanex Ltd.
According to investigators, Ali later convinced the investors to engage in a second transaction involving the purchase of 30 kilograms of gold from a purported military officer at a cost of USD 2.4 million.
After acquiring the gold, the investors reportedly had it tested at Azzura Refinery before storing it at Duck Hunters Security Company, awaiting export to Dubai. However, the consignment later disappeared under unclear circumstances.
The investors subsequently returned to Uganda, where they discovered they had been defrauded.
Authorities say investigations are ongoing to track down other suspects, including individuals linked to gold export companies and alleged military connections in the scam.
The case highlights growing concerns over fraudulent gold deals targeting foreign investors in Uganda’s mineral trade sector.
