Two Arrested in Elaborate Cigarette Scam That Defrauded Investor of Over $24,000
KAMPALA, Uganda — The Uganda Revenue Authority (URA) has announced the arrest of two men allegedly behind a sophisticated export fraud scheme involving non-existent cigarettes, which defrauded a Congolese businessman of more than $24,000.
The suspects, identified as Frank Mugisha and Muhumuza George, face charges of obtaining money by false pretense, declaring non-existent goods, and manipulating customs documentation. Their arrest followed a formal complaint filed by businessman Masereka Musavuli.
According to URA intelligence, the scam began when Mugisha and Muhumuza approached Masereka, offering to sell him 15,000 cartons of “Super Match” cigarettes. The pair claimed the consignment was seized by URA and stored at its customs warehouse in Nakawa. They presented themselves as intermediaries who could facilitate the export of the goods to the Democratic Republic of Congo.
To bolster their story, the suspects took Masereka to the URA Nakawa headquarters, showing him sacks and matching photos sent via WhatsApp. However, they prevented him from entering the warehouse, insisting access required completed paperwork and payment.
Masereka was then issued an expired Payment Reference Number (PRN) for 36.88 million Ugandan shillings (approx. $9,800) on April 28, 2025. Later, a new assessment was generated for the same amount, which Masereka paid via a bank in Kikubo on May 6. The scammers also allegedly received an additional $15,000 in “facilitation fees.”
The scheme unraveled when Masereka, after purchasing packing materials and hiring a truck as instructed, arrived at URA to load the cigarettes. The truck was weighed but then impounded at the gate for three weeks. No cigarettes were ever produced or loaded, prompting Masereka to report the fraud.
URA investigators confirmed there was no record of the cigarette consignment. “The export entry appears to have been used solely to mislead Masereka and facilitate the fraudulent request for payment,” a statement read. The investigation, filed as GEF 145/2025, established that the suspects never owned any goods in the URA warehouse.
In a press briefing, URA’s Acting Manager of Intelligence, Alfred Kyamanywa, issued a stern public warning. “We want to inform the public that Customs Enforcement… does not sell contraband goods. When we impound cigarettes, they are disposed of in a manner prescribed by law. We don’t sell cigarettes at URA Nakawa HQ.”
The Commissioner General of URA, John R. Musinguzi, condemned the fraud and vowed to protect traders. “Be wary of anybody who tells you there are cigarettes at URA for sale. Report that person immediately to the nearest police or URA office,” he stated, adding that the arrests should serve as a deterrent.
The URA emphasizes that this case underscores the importance of verifying offers that seem too good to be true and officially confirming any transaction involving government-held goods directly with authorities.
TaxFraudAlertUg
About The Author
