A businessman, Muhammad Ali, has been remanded to prison over allegations of orchestrating a sophisticated fake gold deal that defrauded Dubai-based investors of approximately USD 3.5 million (about UGX 13 billion).
Ali was on Tuesday arraigned before the Makindye Magistrates Court on charges of theft and cheating. The court remanded him until 5th May 2026.
He was jointly arrested and prosecuted by the Anti-Corruption Unit (State House) working alongside the Criminal Investigations Directorate (CID) and the Office of the Director of Public Prosecutions (ODPP).
Prosecution alleges that between September and October 2025, Muhammad Ali, while working as a manager at the Duck Hunters Security Company, and others still at large, defrauded the investors through a staged gold trading scheme.
The victims, who had travelled from Dubai in search of legitimate gold suppliers in Uganda, were reportedly introduced to several dealers by Ali. They initially purchased 10 kilograms of gold worth USD 700,000 from a company identified as Spanex Ltd.
Investigators say Ali later convinced the investors to enter a second deal involving 30 kilograms of gold, allegedly sourced from a purported military officer, at a cost of USD 2.4 million.
The 30-kilogram consignment was reportedly tested at Azzura Refinery and later stored at Duck Hunters Security Company premises pending export to Dubai.
However, the consignment reportedly went missing under unclear circumstances, prompting the investors to return to Uganda, where they discovered they had been defrauded.
Authorities say investigations are still ongoing into the operations of various gold-exporting companies and the alleged involvement of individuals linked to the military in the scam.
Officials have indicated that efforts are underway to apprehend all suspects connected to the fraudulent scheme as the case proceeds.
