Ali Muhammed, the principal suspect
HABARI DAILY I Kampala, Uganda I The State House Anti-Corruption Unit (SHACU), working together with the Criminal Investigations Directorate (CID) and the Office of the Director of Public Prosecutions (ODPP), have busted an alleged Shs13 billion fake gold syndicate.
This followed court proceedings unraveled how forged documents were allegedly used to secure bail for the prime suspect, who has now been sent back on remand.
Ali Muhammed, the principal suspect in the alleged fake gold scam targeting Dubai-based investors, was on Friday arraigned before the Makindye Chief Magistrate’s Court on fresh charges of forgery and uttering false documents before being remanded to Luzira Prison.
Muhammed appeared before Grade One Magistrate Charles Kangira Opio alongside his co-accused, Mahmoud Ayman El-Gazzar, who did not appear in court. The pair faces four counts relating to forgery and uttering false documents allegedly used to deceive the court into granting Muhammed bail earlier this year.
His latest arraignment follows his dramatic arrest on Tuesday by SHACU operatives while appearing in court for the mention of the main criminal case in which he is accused of orchestrating a fraudulent gold deal worth $3.5 million (about Shs13 billion).
According to the prosecution, the latest charges stem from allegations that Muhammed forged both a marriage certificate and a medical report to convince the court to release him on bail despite facing serious charges of theft and obtaining money by false pretences.
State Attorney Jemima Achieng told court that Muhammed, together with others still at large, allegedly forged Marriage Certificate No. 31329 on April 22 at Kansanga Mosque in Makindye Division.
The prosecution alleges that the document falsely indicated that a marriage had taken place at the mosque and was deliberately created to deceive the court into granting Muhammed bail.
In a separate count, prosecutors allege that on April 25, Muhammed knowingly presented the forged marriage certificate before the Makindye Chief Magistrate’s Court to Rogers Magara with the intention of securing his release.
Court also heard that Muhammed and his co-accused allegedly forged a medical report purportedly issued by Kibuli Muslim Hospital.
According to the charge sheet, the report, referenced KMH/OTS/3/4/26 and dated April 23, 2026, was fraudulently created to portray Muhammed as medically unfit, thereby strengthening his application for bail.
The prosecution further alleges that the forged medical report was knowingly presented before the trial court in an attempt to persuade the magistrate to release the suspect.
Muhammed’s lawyers, Derrick Ruzima and Akram Kyambadde, informed the court that they had instructions from their client to apply for bail on the fresh charges.
However, the prosecution opposed the application, arguing that investigations into the alleged forgery network were still ongoing and that additional suspects remained at large.
The court agreed with the prosecution and remanded Muhammed to Luzira Prison until July 31, when the matter will return for further mention.
The fresh charges add another layer to a criminal case that has attracted national attention since April when SHACU intervened following complaints from the victims, who accused police investigators of bias in handling the case.
Muhammed was initially arrested after Dubai-based investors petitioned SHACU over what they described as slow progress in investigations into an elaborate fake gold transaction that allegedly cost them Shs13 billion.
Prosecutors allege that between September and October 2025, while serving as a manager at Duck Hunters Security Company, Muhammed and several accomplices fraudulently obtained the money from foreign investors after promising to supply genuine gold.
The investors allegedly discovered they had been conned after the promised gold failed to materialize.
Although Muhammed was remanded to prison on April 22 to face charges of theft and cheating, controversy erupted just two days later when he was released on bail under circumstances that have since become the subject of fresh criminal investigations.
Investigators now contend that the release was secured using forged marriage and medical documents, prompting SHACU, CID and the ODPP to reopen inquiries into how the suspect managed to obtain his freedom.
The anti-corruption unit has previously disclosed that investigations have uncovered additional suspects believed to have participated in both the alleged gold fraud and the subsequent forgery scheme.
According to SHACU, efforts to trace and arrest the remaining suspects are ongoing, with authorities insisting that everyone linked to the alleged Shs13 billion scam will be brought before court once apprehended.
The case is expected to resume on July 31 as investigators continue piecing together what they believe is a sophisticated fraud involving fake gold deals and forged court documents.
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