A businessman has been remanded to prison over an alleged multi-billion gold scam that targeted foreign investors, in a case now under investigation by Ugandan authorities.
The State House Anti-Corruption Unit, working jointly with the Criminal Investigations Directorate and the Office of the Director of Public Prosecutions, arraigned Muhammad Ali before the Makindye Magistrates Court on charges of theft and obtaining money by false pretence. He was remanded until May 5, 2026.
Court heard that between September and October 2025, Ali, then a manager at Duck Hunters Security Company, allegedly collaborated with others still at large to defraud Dubai-based investors of USD 3.5 million (approximately UGX 13 billion) through fraudulent gold deals.
The investors had travelled to Uganda in search of legitimate gold suppliers and were reportedly introduced to several dealers by Ali. They initially purchased 10 kilograms of gold worth USD 700,000 from Spanex Ltd in what appeared to be a genuine transaction.
Prosecution further alleges that Ali later convinced the investors to engage in a second deal involving 30 kilograms of gold, purportedly sourced from a military officer, at a cost of USD 2.4 million.
After acquiring the gold, the investors had it tested at Azzura Refinery and stored at Duck Hunters Security Company pending export to Dubai. However, the consignment allegedly went missing, prompting the investors to return to Uganda, where they discovered they had been defrauded.
Authorities say investigations are ongoing to track down other suspects involved in the scheme, including individuals linked to gold exporting companies and any alleged military connections.
The case highlights ongoing concerns over fraudulent gold transactions targeting international investors and underscores efforts by anti-corruption agencies to crack down on such crimes.
