Security Raids Euro Gold Boss’s Home as Mohammed Ali is Sent Back to Luzira
KAMPALA — Security agencies have escalated their probe into a Shs13 billion gold fraud scandal after searching the homes of detained gold businessman Benard Feni and sending a key suspect, Mohammed Ali, back to Luzira Prison.
Feni, the proprietor of Euro Gold Refinery, was arrested earlier this week in a joint security operation and taken to the Special Investigations Unit (SIU) in Kireka for interrogation .
Operations and Detention
TrumpetNews has learned that security officers returned to Feni’s properties in the upscale Kampala suburb of Buziga on Friday morning, conducting searches for documents and other evidence to help investigators establish his alleged involvement in the fraud .
The searches are understood to form part of a wider investigation into allegations that Feni may have been involved in several gold-related scams, beyond the transaction that triggered his arrest .
Courtroom Drama and Forgery Charges
The investigation has also seen a major development involving Mohammed Ali, the former Managing Director of Duck Hunters Security Services Limited and the principal suspect in the case .
Ali has been denied bail and returned to Luzira Prison, where he will remain in custody as his criminal case proceeds .
His continued incarceration comes after prosecutors and investigators raised concerns over documents allegedly used to secure his earlier release from custody. Authorities allege that Ali used a forged medical report to convince the court that he was suffering from diabetes and other serious medical complications . Investigators also questioned a marriage certificate allegedly presented to court to establish one of his sureties, Janet Mbabazi, as his wife .
Investigations subsequently established, according to the State House Anti-Corruption Unit (SHACU), that the documents were allegedly forged . Ali was later rearrested by SHACU and CID detectives when he reported to Makindye Court as required under his bail conditions. He was subsequently re-arraigned on fresh charges of forgery and uttering false documents .
The Wider Investigation
The case stems from a complaint by Dubai-based investors who allege they lost approximately USD 3.5 million (about Shs13 billion) in fraudulent gold transactions in Uganda .
The investors’ complaint eventually reached President Yoweri Museveni, who directed security agencies to investigate the allegations and pursue individuals believed to have been involved .
With Feni’s homes now searched and Ali back in Luzira, investigators appear to be moving beyond the original complaint to build a broader case around what they suspect could be a much larger network of fraudulent gold dealings . The investigation is increasingly focusing on the money trail, gold consignments, and other alleged transactions connected to the suspects.
Both Feni and Ali remain in custody as detectives work to establish the full extent of the alleged gold fraud network. The suspects are presumed innocent until proven guilty by a competent court .
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