KAMPALA — State House detectives have dismantled a sophisticated gold-smuggling syndicate following the arrest of a prominent businessman linked to a 13 billion shilling international fraud.
Ali Mohammed, a Ugandan of Somali origin and former managing director of Duck Hunters Security Services, was apprehended Thursday by the State House Anti-Corruption Unit and the Criminal Investigations Directorate. Mohammed is accused of orchestrating a multi-stage scam that defrauded Dubai-based investors from MAPSCO General Trading LLC of $3.5 million.
The investigation reveals a calculated operation involving a network of security firms, fake army officers and high-security safe houses.
The trail began in September when the investors arrived in Kampala to purchase 10 kilograms of gold from Spanex Cargo Company Limited for $700,000. Investigators say Spanex — a firm already blacklisted by the Ministry of Energy for illegal dealings — directed the investors to Duck Hunters Security Services in Muyenga to store the bullion.
The trap closed at Entebbe International Airport, where the investors were told a fictitious customs complication prevented the gold’s export.
In a brazen escalation, Mohammed reportedly led the victims to a fortified residence in Buziga, guarded by armed men. There, the investors were introduced to a man posing as a Uganda People’s Defence Forces general named James. Under the guise of high-level military clearance, the syndicate enticed the victims to purchase an additional 30 kilograms of gold for $2.4 million.
According to unit sources, the investors paid the funds after being shown samples and visiting a refinery, only to be blocked once again by claims of missing documentation.
The investigation has now widened to include eight firms recommended for closure in a joint report by the police mineral protection unit. These include Howks Guard Security, B Safe Security Systems, Aurus Traders Limited, Kerlibar Logistics, Hey Transport Limited and Midasgko Mineral Trade.
Authorities say they are pursuing several other suspects, including the individuals who impersonated military officers to facilitate the extortion.
