KAMPALA, Uganda — A multimillion-dollar gold transaction allegedly gone wrong in Kampala has put an uncomfortable spotlight on Uganda’s rapidly expanding bullion trade after a serving military officer and two civilians were charged over the alleged defrauding of a Dubai-linked investor.
Major Nicholas Ntakirwa of the Uganda People’s Defence Forces (UPDF), along with businessman Trevor Besigye and Mohammed Ali, a director of Duck Hunter Security Company Limited, appeared before Uganda’s General Court Martial this week over allegations involving US$2.4 million, approximately Shs13 billion, in a purported gold transaction.
The prosecution alleges that the three men presented a deal involving 30 kilograms of gold destined for Dubai, United Arab Emirates, but that the transaction was never genuine.
The suspects have been charged with obtaining money by false pretences and scandalous conduct. They were remanded until November 16, 2026, as proceedings continue.
The defendants are presumed innocent unless and until proven guilty in court.
The alleged $2.4 million transaction
According to prosecution allegations reported by Ugandan media, the case dates back to September 2025.
Investigators allege that Major Ntakirwa presented himself to the investor as “Gen. James” and, together with Ali and Besigye, entered into a purported gold transaction with Gafar Ibrahim Mohammed Elsawi, an investor associated with MAPSCO General Trading LLC.
The investor was allegedly told that the money was payment for 30 kilograms of gold that would subsequently be exported to Dubai.
The alleged transaction took place on September 22, 2025, at the offices of Duck Hunter Security Company Limited in Muyenga, Kampala.
Prosecutors contend that the suspects had no intention of completing the transaction despite representing themselves as participants in a legitimate gold deal.
The amount allegedly obtained was $2.4 million.
The prosecution further alleges that a week later, on September 29, the investor was asked for another $120,000, reportedly on the pretext that the money was required for payment to the Commissioner General of the Uganda Revenue Authority.
Authorities allege that the additional payment was also obtained under false pretences.
The suspects are accused of acting with other individuals who remain at large.
Why the military connection matters
The case has attracted particular attention because one of the accused is a serving UPDF officer.
The allegations against Major Ntakirwa therefore extend beyond the question of a disputed commercial transaction.
Prosecutors have also accused him of conduct allegedly inconsistent with the morality, order and expectations contained in the UPDF’s code of conduct.
That distinction is important.
A private commercial dispute is one thing. Allegations that a serving military officer used an apparent military identity or rank to facilitate a multimillion-dollar transaction raise much broader questions about institutional credibility, the use of official status and the protection of foreign investors operating in Uganda.
The court will ultimately have to determine what happened, what representations were made and whether those representations amounted to criminal conduct.
Uganda’s gold boom creates a bigger story
The case arrives at a particularly significant moment for Uganda’s economy.
Gold has rapidly become one of the country’s most important export commodities.
According to Bank of Uganda figures reported by Reuters, Uganda’s gold exports reached approximately $5.8 billion in 2025, up from $3.3 billion in 2024. The increase of about 75.8% helped gold overtake coffee as Uganda’s largest export and a major source of foreign exchange. (Reuters)
But there is a major complication behind those numbers.
Uganda is not simply exporting gold extracted from its own mines.
The country has increasingly developed into a regional processing and trading hub, with bullion entering Uganda from neighbouring countries, including parts of the Democratic Republic of Congo and South Sudan, before being processed or traded onward.
That regional role has helped transform Kampala into an increasingly important node in the African gold economy.
It has also created new opportunities — and new vulnerabilities.
The Dubai connection
The alleged transaction is particularly revealing because Dubai and the wider United Arab Emirates have become major destinations and trading centres for African gold.
For legitimate businesses, this creates an enormous commercial opportunity.
For criminals and fraudulent intermediaries, however, the international gold trade can provide a complicated environment in which large sums of money change hands quickly, multiple jurisdictions are involved and buyers may have difficulty verifying the true origin, ownership and chain of custody of bullion.
A transaction involving a foreign investor, Ugandan intermediaries, a purported military connection, private security facilities and a planned export to Dubai illustrates just how many layers can exist in a single gold deal.
That complexity can become an advantage for sophisticated fraud.
A gold rush with a transparency problem?
Uganda’s gold boom has already generated questions beyond this particular case.
Civil society organizations have questioned whether the country’s enormous reported gold export earnings are translating into proportional public revenue and broader economic benefits.
The concerns are significant because Uganda’s reported gold-export value is enormous compared with the country’s traditional export economy.
In 2025, gold exports reached approximately $5.8 billion, while coffee remained a major agricultural export. Reuters has also reported that Uganda’s gold trade has expanded partly because the country functions as a regional processing and trading centre rather than simply as a producer of domestically mined gold. (Reuters)
That distinction matters.
If a country exports billions of dollars in gold, the headline figure does not necessarily mean that billions of dollars worth of gold were mined inside that country.
Some of the bullion may have originated elsewhere, creating difficult questions around traceability, taxation, licensing and the ultimate beneficiaries of the trade.
The risks facing foreign gold buyers
The Kampala case also demonstrates why international gold buyers face substantial risks when entering African markets without rigorous due diligence.
A buyer dealing with millions of dollars cannot rely solely on personal introductions, impressive titles or claims about government connections.
Before money changes hands, legitimate buyers need to establish:
- Who legally owns the gold?
- Where was the gold mined?
- Is the seller properly licensed?
- Has the bullion been independently assayed?
- Does the documentation match the physical shipment?
- Who controls the secure storage facility?
- Are export permits valid?
- Who is responsible for customs clearance?
- Which bank or regulated financial institution is handling the transaction?
- Is the ultimate beneficial ownership of the companies involved known?
- Can the transaction withstand independent legal and financial scrutiny?
The larger the transaction, the more important these questions become.
The economics of temptation
Gold is uniquely vulnerable to fraud because its value is extremely concentrated.
A relatively small physical quantity can represent millions of dollars.
Thirty kilograms of gold, for example, represents a substantial financial asset. When international gold prices are high, the incentive to create fake transactions, counterfeit documentation or fraudulent investment opportunities increases.
Uganda’s rapidly growing gold sector therefore faces a paradox.
The same international demand that can bring foreign capital, jobs and foreign-exchange earnings can also attract individuals seeking to exploit inexperienced investors.
The country’s reported export boom has already attracted new dealers. The Bank of Uganda attributed part of the increase in gold exports to high international prices and the entry of new participants into the sector. (MarketScreener)
Uganda’s gold economy is becoming too important to remain opaque
The wider issue is bigger than three defendants and one alleged transaction.
Uganda is positioning itself as an important regional player in Africa’s gold economy. The country has also begun taking steps to increase domestic participation in the industry, including the launch of a central-bank gold-buying programme in 2026.
The Bank of Uganda announced plans to purchase domestic gold as part of efforts to strengthen foreign-exchange reserves and reduce exposure to international financial-market risks. (Reuters)
As gold becomes more strategically important, the country’s regulatory infrastructure will face increasing pressure.
Licensing systems, refinery oversight, export documentation, beneficial-ownership rules, anti-money-laundering controls and chain-of-custody mechanisms will all become increasingly important.
The alleged Kampala fraud demonstrates why.
The military, the market and public trust
Perhaps the most troubling dimension of the case is the alleged use of military identity.
If the prosecution’s allegations are ultimately proven, the case would demonstrate how institutional credibility can itself become a tool in financial fraud.
A military rank can create an aura of authority.
A secure facility can create an impression of legitimacy.
A foreign investor may interpret connections to government officials, military personnel or security companies as evidence that a transaction has been vetted.
That is precisely why allegations involving public institutions require serious scrutiny.
The court proceedings will determine whether those allegations are supported by evidence.
What happens next?
The three accused remain on remand pending further proceedings.
The prosecution is also investigating other individuals who may have been involved in the alleged transaction.
The case will ultimately turn on evidence: financial records, communications, contracts, gold documentation, witness testimony, the movement of the alleged funds and the identities and roles of everyone involved.
For the accused, the presumption of innocence remains fundamental.
For Uganda, however, the case raises a much larger question.
Can the country build a gold economy capable of attracting billions of dollars in international business while maintaining the transparency and regulatory credibility necessary to protect investors and ensure that the wealth generated by the trade benefits the country?
That question becomes increasingly urgent as gold replaces coffee at the top of Uganda’s export table.
The $2.4 million alleged Dubai scam is therefore more than a sensational criminal case.
It is a warning about what can happen when enormous amounts of money enter a rapidly expanding commodity market faster than trust, oversight and accountability can keep pace.
The gold is real. The money is real. And the stakes for Uganda’s emerging gold economy are becoming very real as well.
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