By KT Reporter
A businessman has been remanded to prison over his alleged involvement in a multi-billion gold scam targeting foreign investors.
The suspect, identified as Muhammad Ali, was arraigned before the Makindye Magistrates Court by the State House Anti-Corruption Unit in collaboration with the Criminal Investigations Directorate and the Office of the Director of Public Prosecutions.
He faces charges of theft and cheating and has been remanded until May 5, 2026.
Prosecution alleges that between September and October 2025, Muhammad Ali, while working as a manager at Duck Hunters Security Company, and others still at large, defrauded Dubai-based investors of USD 3.5 million (approximately UGX 13 billion) through fraudulent gold transactions.
Court heard that the investors had 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.
It is further alleged that the suspect later convinced the investors to engage in a second transaction involving 30 kilograms of gold, purportedly from a military officer, valued at USD 2.4 million.
After acquiring the consignment, the investors reportedly had the gold tested at Azzura Refinery before storing it at Duck Hunters Security Company pending export to Dubai. However, the gold later disappeared.
The investors returned to Uganda upon discovering the loss, only to find that they had been defrauded.
Authorities say investigations are ongoing to trace other suspects and establish the involvement of additional entities in the alleged scam.
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