Written By | Our Reporter
Muhammad Ali faces charges of theft and cheating
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KAMPALA
A businessman has been remanded to prison over his alleged involvement in a gold scam that defrauded Dubai-based investors of more than USD 3.5 million (approximately UGX 13 billion).
Muhammad Ali was on Tuesday arraigned before the Makindye Magistrates Court by the State House Anti-Corruption Unit, working jointly with the Criminal Investigations Directorate (CID) and the Office of the Director of Public Prosecutions (ODPP).
He faces charges of theft and cheating and has been remanded until May 5, 2026.
According to investigators, the suspect allegedly committed the offences between September and October 2025 while working as a manager at Duck Hunters Security Company, in collaboration with others still at large.
Prosecution alleges that Ali and his accomplices orchestrated a fraudulent scheme targeting foreign investors who had travelled to Uganda in search of gold suppliers.
The investors were reportedly introduced to several dealers by the suspect and proceeded to purchase an initial consignment of 10 kilogrammes of gold valued at USD 700,000 from a company identified as Spanex Ltd.
Court heard that Ali later convinced the investors to enter into a second transaction involving the purchase of 30 kilogrammes of gold from an individual he presented as a military officer, at a cost of USD 2.4 million.
The investors reportedly tested the gold at Azzura Refinery before storing it at Duck Hunters Security Company, awaiting export to Dubai.
However, the consignment allegedly disappeared while in storage, prompting the investors to return to Uganda, where they discovered they had been defrauded.
Authorities say investigations are ongoing into the operations of the involved gold-exporting companies, as well as alleged military links to the scam, with efforts underway to apprehend other suspects still at large.
The case adds to a growing number of gold-related fraud cases targeting foreign investors in Uganda, raising concerns over regulation and oversight in the mineral trade sector.
Torch Media Africa
