Army probes alleged soldier involvement in sh13b gold scam

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Operatives from the Defence Intelligence and Security (DIS), formerly Chieftaincy of Military Intelligence (CMI), the intelligence arm of the Uganda People’s Defence Forces (UPDF), probing embattled former Duck Hunters managing director Muhammed Ali, a key suspect in a sh13b gold fraud, are trying to establish the role army personnel played in the deal, New Vision has learnt.

Sources at DIS who spoke to New Vision confirmed they met the investors on April 16, 2026, as they sought to find out who the armed UPDF personnel were that the investors allegedly met in Bunga, led by a Major General James, and who was paid $2.4m (sh8.88b) for 30kg of gold that they would later never receive.

“We are trying to establish his relationship between Mohammed and the military. Who are those armed men the investors met? What was their level of involvement? How long has Mohammed used soldiers in his alleged fraudulent dealings,” an operative said.

Mohammed was transferred to DIS on April 15, 2026, which is assisting the State House Anti-Corruption Unit to probe the complex web of fraud, the actual amount of money stolen and which other individuals were involved in the scam.

The involvement of DIS in the matter comes in the wake of the alleged involvement of a suspect in the scam who was dressed in full military regalia and, according to victims, identified himself as Major General James. It also follows more complaints registered against Mohammed, with victims recording statements over gold fraud.

On April 13, 2026, New Vision exclusively reported that SHACU, working with the Criminal Investigations Directorate, on April 9, 2026, arrested Mohammed, a Ugandan of Somali origin, for allegedly defrauding investors of $3.5m (about sh13b) in a fake gold deal.

Mohammed’s arrest comes six months after the investors allegedly lost money to him. At the time of the alleged fraud, Mohammed was the managing director at Duck Hunters Security Services, a company based in Muyenga, Kampala.

The investors, who operate under the company MAPSCO General Trading LLC, later reported to the unit, which intervened and investigated the matter, leading to Mohammed’s arrest last week on Thursday.

New Vision has learnt that the transactions took place in September last year when the Dubai-based investors visited Uganda to explore gold deals.

On Monday last week, Duck Hunters said they had acted and sacked Mohammed as managing director after learning about the scandal.

In a statement sent to New Vision, Jamal Ali Said, the majority owner based in the United States of America (US), confirmed Mohammed’s dismissal and shared a letter dated January 11, 2026, relieving him of his duties.

A copy of the letter with the reference, "Dismissal as MD Duck Hunters Services Limited", seen by New Vision to Mohammed reads, “This is to notify you that your services and position as MD of Duck Hunters Services Limited is hereby terminated with immediate effect. As an MD and minority shareholder, you have abused your position and office by involving the company in shady and fraudulent deals whose actions have been prejudicial to the interest of the company. You forthwith must not enter or access the company or its premises."

Jamal noted that they also proceeded and sacked Peter Okaka, the company’s operations manager, on January 31, 2026, after he was accused of working with Mohammed.

Both dismissal letters were copied to the resident city commissioner Makindye Division, commander private security organisations at the Uganda Police Force and the commandant, Mineral Police Unit.

“He has, however, declined to hand over office and resorted to use of force,” Jamal said.

Investigations widened

New Vision has learnt that operatives and detectives have since widened their investigations, which are set to see both former and current staff at Duck Hunters questioned after it emerged that Mohammed had allegedly switched off CCTV recordings at his offices while transacting with the investors.

Investigations have also revealed that proceeds from the alleged fraudulent sale were used to procure a hostel, several high-end cars, and an insurance company, among other items.

New Vision has learnt that DIS, SHACU and CID are now hunting for other suspects involved in gold scams targeting investors.

The source said: “Investigations also stretch to Spanex Cargo Company Limited, where the investors initially bought 10kg of gold.”

Spanex is one of eight companies recommended for closure over alleged illegal gold dealings in a joint report released in February this year by the Police’s mineral protection unit and the energy ministry.

Other companies are: Howks Guard Security, located on St Barnabas Road in Kiwafu, Muyenga; B Safe Security Systems, located in Nsambya Makindye Division; Duck Hunters Security Services; Aurus Traders Limited; Kerlibar Logistics; Hey Transport Limited; and Midasgko Mineral Trade.

How it started

As part of their engagement, sources said the investors visited Spanex Cargo offices in Bukoto, Kampala, after obtaining contacts via the internet.

“The investors visited their offices in Bukoto and they showed them their licences and permits and some export documents for other clients, and they bought from them 10kg of gold at $700,000 [sh2.58b],” the investors told investigators.

According to investigations, Spanex recommended that Duck Hunters secure the 10kg of gold as they processed export documents.

“They went to Duck Hunters, where they met Mohammed, and he agreed to keep the gold. However, Spanex failed to arrange the relevant documents, and they kept on giving the investors assurances until they took them to the airport to travel with the gold. However, on arriving at the airport, the Spanex people and Mohammed told investors that there was a problem with customs.

“They told them that customs could not clear only 10kg because Spanex had brought in 50kg. So, they lied to the investors that the 10 kg could not be cleared without the other 40kg. The investors, therefore, flew out without any gold since they had bought air tickets. On coming back, they started tossing them,” the investigators said.

According to investigators, when the investors returned to Uganda, Mohammed introduced them to someone else, whom he said could help them export the 10kg of gold.

According to recollections from the victims, investigators said Mohammed took the victims to an office in Buziga where they found many soldiers armed with guns. They were searched at the gate and had their mobile phones taken before being led upstairs to meet an alleged UPDF army general introduced as James.

The investigator added that the victims said they met the man in the company of others whom he introduced as his clearance agents from a firm identified as Midasgko Mineral Trade.

At this point, the investors were reportedly enticed to buy another 30kg of gold from the alleged UPDF general. The investors later bought the 30kg of gold, with each kilogramme at $80,000, making a total of $2.4m (sh8.88b).

The investors were reportedly given samples of the alleged gold, which were placed in a Duck Hunters car and taken to the refinery.

“They checked the gold and paid the money,” the source revealed. As they tried to fly out of the country with the purchase, the investors were informed that some accompanying documents were missing, and they could not travel with the gold. It is at this point that the investors sensed foul play and reported the matter to authorities.