Kampala, UGANDA — The Anti-Corruption Court in Kampala has remanded Muhammed Ali, the former managing director of Duck Hunters Security Services, over his alleged role in a fake gold deal that cost investors $3.5m (about Sh13b).
Ali, a Ugandan of Somali origin, was arrested on April 9, 2026, by the State House Anti-Corruption Unit (SHACU) working with the Criminal Investigations Directorate (CID), six months after the investors reported losing money to him. He appeared before court and was remanded as investigations continue.
Prosecutors say Ali, while still managing director of the Muyenga-based security firm, lured foreign investors into buying 30kg of gold for $2.4m (Sh8.88b). The deal was never honored. Court documents indicate the investors were introduced to armed UPDF personnel during negotiations in Bunga, including a man who identified himself as “Major General James”.
Operatives from the Defence Intelligence and Security (DIS), formerly CMI, are now probing the involvement of army personnel in the scam. DIS confirmed meeting the complainants on April 16, 2026, to establish the relationship between Ali and the military, and to identify the armed men the investors met.
Ali was transferred to DIS custody on April 15, 2026, to assist SHACU in unraveling what investigators described as a “complex web of fraud”. Authorities are still verifying the total amount stolen and identifying other suspects linked to the scheme.
The case adds to a growing list of high-value gold frauds reported in Kampala, where investors have lost millions to syndicates posing as licensed dealers. SHACU has urged investors to verify gold transactions with the Ministry of Energy and Mineral Development before making payments.
Ali returns to court later this month as detectives piece together evidence and trace money flows. DIS says its inquiry will determine whether military uniforms were used to lend credibility to the fraudulent deal.
