A major gold fraud case has rocked Kampala after businessman Mohammad Ali, a Ugandan national linked to controversial gold trading circles, was formally charged over allegations of stealing and cheating investors in a multi-million-dollar deal.
According to a Uganda Police Form 53 charge sheet issued by CID Headquarters under reference PMPU CRB:089/2025 dated 21st April 2026, Ali Mohammed, aged 32 and a resident of Bunga in Makindye Division, Kampala, is accused of orchestrating a fraudulent gold transaction involving 30 kilograms of gold valued at USD 2.4 million (about Shs 8.8 billion).
The alleged victim in the case is Musa Muhammad, a director of MAPSCO General Trading LLC, a trading company said to have been involved in the disputed gold purchase arrangement.
Investigators allege that between 22nd September 2025 and 2nd October 2025, at Bukasa–Muyenga in Kampala District, Ali Mohammed and others still at large stole the said 30 kilograms of gold.
The prosecution further states that the accused and his associates fraudulently obtained USD 2.4 million (shs 8.8 billion) from the investor by falsely presenting themselves as genuine sellers of gold, while in reality the transaction was allegedly based on deception.
Police documents indicate that the group convinced the investor that they were in possession of legitimate gold ready for sale and export, creating the impression of a lawful and verified transaction.
However, investigators now say the deal was part of a calculated scheme that left the investor defrauded of millions of dollars.
The case has added to growing concerns over sophisticated gold-related scams operating in Kampala, where unsuspecting investors often foreign traders are reportedly lured into high-value deals involving fake or non-existent gold shipments.
Ali Mohammed is expected to be produced before court on Tuesday afternoon to formally answer to the charges of theft and cheating as investigations continue into other individuals believed to be part of the wider network.
Authorities say more arrests could follow as they widen probes into what appears to be a coordinated fraud syndicate operating under the guise of legitimate gold trading.
