Muhammed Ali, the embattled former managing director of Duck Hunters Services Limited, has been transferred to Defence Intelligence and Security (DIS) as investigations intensify into a $3.5 million (13 billion shilling) gold scam.
DIS, formerly known as the Chieftaincy of Military Intelligence, is the intelligence arm of the Uganda People’s Defence Forces.
The State House Anti-Corruption Unit (SHACU), in coordination with the Criminal Investigations Directorate (CID), arrested Ali, a Ugandan of Somali origin, for allegedly defrauding investors in a fraudulent gold deal.
Sources familiar with the investigation confirmed the suspect was moved to DIS on Wednesday evening to help uncover the full extent of the fraud, the total amount stolen, and other collaborators involved.
“I can confirm the suspect has been transferred to DIS,” a senior operative said. “They will work together with SHACU and CID to unravel the scam.”
Military involvement followed allegations that another suspect, dressed in full military uniform and identifying himself as Maj. Gen. James, was part of the scheme. Several additional victims have since come forward to record statements against Ali.
The arrest comes six months after investors with MAPSCO General Trading LLC reportedly lost their funds. At the time, Ali served as the managing director of Duck Hunters Security Services in Muyenga, Kampala.
According to investigators, the transactions began in September 2025 when the Dubai-based investors visited Uganda. They initially purchased 10 kilograms of gold for $700,000 (2.58 billion shillings) from Spanex Cargo Company Limited.
Spanex is among eight companies recommended for closure in a February joint report by the police mineral protection unit and the energy ministry due to alleged illegal dealings.
The investors claim Spanex recommended Duck Hunters to secure the gold while export documents were processed. However, they were later told at the airport that customs could not clear the 10 kilograms because it was part of a larger 50-kilogram shipment.
Upon their return to Uganda, Ali allegedly took the investors to an office in Buziga guarded by armed soldiers. There, they met a man introduced as “James,” a UPDF general, who enticed them into buying an additional 30 kilograms of gold for $2.4 million (8.88 billion shillings).
The investors realized they were victims of a scam when they were again blocked from flying out with the gold due to “missing documents.”
Following reports of the arrest, Duck Hunters majority shareholder Ali Said Jamal issued a statement confirming that Ali had been sacked on Jan. 11, 2026.
“You have abused your position and office by involving the company in shady and fraudulent deals,” Jamal wrote in a termination letter.
The company also dismissed operations manager Peter Okaka on Jan. 31 for his alleged involvement. Copies of the termination letters were sent to the Makindye resident city commissioner and police leadership.
