CMI Joins State House in Probe of Shs 13Bn Gold Scam

The Chieftaincy of Military Intelligence (CMI) has joined the State House Anti-Corruption Unit in investigating a high-profile gold scam in which investors lost approximately Shs 13 billion.

The case centers around a businessman identified as Ali Muhammad, a Ugandan of Somali origin, who is accused of orchestrating a fraudulent gold investment scheme that deceived multiple investors with promises of lucrative returns.

According to preliminary findings, the suspect operated under the guise of a legitimate gold dealer, convincing investors to inject large sums of money into what was presented as genuine gold consignment deals. Victims were led to believe they were purchasing valuable gold shipments destined for profitable resale.

However, investigations have since revealed that the transactions were based on false claims, with no actual gold backing the deals. Authorities say the scheme involved fabricated documents and a series of calculated misrepresentations that created the illusion of a credible and profitable business.

One of the initial transactions alone is reported to have cost investors up to $700,000, with subsequent deals pushing total losses to about Shs 13 billion.

The fraud came to light after one of the victims raised concerns over inconsistencies in the transactions, prompting security agencies to launch inquiries into the matter.

With CMI now involved, the probe is expected to intensify as authorities work to uncover the full extent of the scam, identify possible accomplices, and trace the stolen funds.

The development has sent shockwaves through the investment community, raising fresh concerns about the risks associated with unverified high-value investment opportunities, particularly in the gold trade.

Authorities have urged the public to exercise due diligence before committing funds to such ventures, warning that fraudsters continue to exploit the promise of quick profits to lure unsuspecting victims. Investigations are ongoing.