A Kampala businessman has been remanded by the Makindye Magistrates Court over an alleged Shs13 billion fake gold scam involving investors from Dubai.
The suspect, identified as Muhammad Ali, was on Tuesday arraigned by the State House Anti-Corruption Unit in collaboration with the Criminal Investigations Directorate (CID) and the Office of the Director of Public Prosecutions on charges of theft and obtaining money by false pretence.
Court heard that between September and October 2025, Muhammad—who was working as a manager at Duck Hunters Security Company—allegedly conspired with others still at large to defraud Dubai-based investors of Shs13 billion (approximately USD 3.5 million) through fraudulent gold transactions.
The investors reportedly travelled to Uganda in search of gold suppliers and were introduced to various dealers by the suspect. They initially purchased 10 kilograms of gold worth USD 700,000 from Spanex Ltd.
Prosecution further states that Muhammad later convinced the investors to purchase an additional 30 kilograms of gold from an individual he introduced as a military officer, at a cost of USD 2.4 million.
After the transaction, the gold was tested at Azzura Refinery and subsequently stored at Duck Hunters Security Company as the investors prepared to export it to Dubai.
However, the gold later went missing. Upon returning to Uganda, the investors reportedly discovered they had been defrauded.
Authorities say investigations are ongoing to track down the remaining suspects, including the alleged gold dealers and any possible military connections.
Muhammad Ali was remanded until May 5, 2026.
