A suspected multi-million dollar gold scam that has drawn the attention of both civilian and military investigators has taken a new turn, with key suspect Muhammed Ali now in the custody of the Defence Intelligence and Security (DIS) as authorities widen their probe.
Ali, a businessman and former managing director of Duck Hunters Security Services based in Muyenga, was arrested by the State House Anti-Corruption Unit working together with the Criminal Investigations Directorate over allegations of defrauding foreign investors in a fake gold deal worth $3.5 million (about Shs13 billion).
He was later transferred to DIS, the intelligence arm of the Uganda People’s Defence Forces, to help investigators untangle what officials describe as a complex and organised fraud network.
His transfer follows emerging details that the scheme may have involved several players, including an individual who allegedly posed as a senior military officer.
Investigators say this suspect appeared in full uniform and introduced himself as “Maj. Gen. James,” raising concerns about impersonation and the possible use of military imagery to gain the trust of victims.
The case dates back to September last year when a group of investors from Dubai travelled to Uganda seeking to purchase gold. Their initial contact led them to Spanex Cargo Company in Bukoto, where they were reportedly presented with convincing documentation and sold 10 kilogrammes of gold for $700,000.
The gold was then placed under the care of Duck Hunters Security Services as arrangements for export were said to be underway.
However, the process soon became complicated, with repeated delays and last-minute claims that the gold could not be cleared at the airport due to customs issues.
The investors were told their shipment had to be processed alongside a larger consignment, forcing them to leave the country without taking possession of their purchase.
In what investigators believe was part of a broader scheme, the investors were later introduced to another deal involving 30 kilogrammes of gold, this time facilitated by the man posing as a military officer. After being shown samples that appeared genuine, they paid an additional $2.4 million. But just like before, attempts to export the gold failed, with new claims that essential documentation was missing.
It was at this stage that the investors grew suspicious and reported the matter to Ugandan authorities. Their complaint triggered an investigation that has since expanded to include multiple companies suspected of involvement in fraudulent gold transactions.
Among those under scrutiny is Spanex Cargo, which had already been flagged in a joint report by the police mineral protection unit and the energy ministry as one of several firms recommended for closure over questionable gold dealings.
Officials say more victims have since come forward, recording statements and pointing to a pattern in how the deals were handled, from initial contact and convincing paperwork to repeated delays and escalating financial demands.
