KAMPALA – Uganda’s military intelligence has joined investigations into a high-profile gold fraud case involving billions of shillings, signaling an escalation in efforts to dismantle sophisticated mineral-related scams.
Authorities confirmed that Muhammed Ali, the embattled former managing director of Duck Hunters Services Limited and a key suspect in the alleged $3.5 million (approximately sh13 billion) scam, has been transferred to Defence Intelligence and Security (DIS) for further interrogation.
The case, which has attracted widespread attention, centers on allegations that Ali and his associates defrauded foreign investors under the guise of facilitating gold transactions. Investigators believe the scheme involved fake documentation, misrepresentation of gold shipments, and manipulation of export processes.
Security officials say the involvement of military intelligence reflects the complexity and cross-border nature of the suspected fraud, which may involve networks operating beyond Uganda. DIS is expected to work alongside civilian law enforcement agencies to uncover the full extent of the operation.
Uganda has in recent years faced repeated scrutiny over gold-related scams, often targeting foreign investors seeking to tap into the region’s lucrative mineral trade. Analysts say such cases risk undermining confidence in the country’s gold export sector, which has become a significant contributor to export earnings.
While police had initially handled the case, the transfer of the suspect to military intelligence suggests a broader investigation that could involve national security considerations, including potential links to organized crime or illicit financial flows.
Authorities have not yet disclosed additional suspects or whether more arrests are imminent, but sources indicate that investigations are ongoing and could widen in scope.
Officials have reiterated government’s commitment to cracking down on fraud in the minerals sector and safeguarding Uganda’s reputation as a legitimate trading hub.
