The Shs18.1b fraud attempt in Uganda has been foiled, leading to the arrest of four individuals, including a medical doctor. The suspects posed as senior government officials. They tried to deceive a Turkish investor into signing a fake government procurement deal worth $4.95 million (about Shs18.1 billion). Dr. Charles Mulyansaka led the group, pretending to be the chairperson of a non-existent Special Contracts Committee. Using fake government websites and forged documents, the group attempted to manipulate the investor.
The other suspects, Moses Mwesigwa, Peter Watum, and Moses Seruma, worked together to create the illusion of legitimacy. They even involved rogue lawyers and bank officials to bypass anti-money laundering procedures. Their target was Furkan Gumran, a Turkish businessman, whom they tried to convince that they secured a government contract for the supply of AD BLUE solution to Uganda’s Ministry of Energy and Mineral Development.
Gumran’s suspicion about the documents prompted him to report the incident to Uganda’s Anti-Corruption Unit. The authorities acted quickly, setting up a sting operation. They arrested the fraudsters at AHA Towers in Kampala before any funds were transferred. This operation marks a significant success in Uganda’s fight against government-linked fraud targeting international investors.
Impersonation and Fake Government Deals
The suspects, including Dr. Mulyansaka, impersonated the chairperson of the Special Contracts Committee. They used fake contracts and counterfeit websites to appear legitimate. They claimed connections with top government offices such as Parliament, the Office of the President, and the ruling party. By meeting investors near actual government buildings, they tried to make their fraudulent operation seem more authentic.
They arranged meetings at government-like venues and created contracts to match the investor’s expectations. However, when Gumran began verifying the documents, he quickly realized the scam.
The Role of the Anti-Corruption Unit
Mr. Israel Ochwo, Deputy Head of Legal at SHACU, praised the success of this operation. He emphasized that frauds like this rarely get intercepted before any money is transferred. “We stopped a major loss thanks to Mr. Gumran’s vigilance,” Ochwo said. “Our cooperation with law enforcement led to the timely arrest of the criminals.”
Gumran expressed gratitude for the quick action by Ugandan authorities. “The scammers were convincing, but I double-checked their documents. I encourage other investors to stay cautious and verify everything before committing.”
Read Also
Similar Scams and Ongoing Investigations
This Shs18.1b fraud attempt is part of a broader network targeting international investors. SHACU revealed several other scams, including fake government procurement deals. In one case, KG Unlimited LLC from the USA lost Shs2.2 billion in a fake water plant deal. Verteco Company Ltd from South Africa lost $1.4 million in a fake Ministry of Energy contract. Other victims have been tricked into fraudulent construction and supply contracts.
Authorities are also searching for Godfrey Ssekidde Lubowa, also known as Maj. Gen. Sam Kiwanuka, who is connected to multiple similar scams. SHACU advises both local and international investors to carefully verify the legitimacy of any government-linked business dealings in Uganda.
The Shs18.1b fraud attempt underscores the growing sophistication of fraud targeting international investors. Although authorities successfully stopped this fraud, continued vigilance is necessary. Investors should take extra steps to verify the authenticity of all business dealings. As Uganda works to strengthen its economy, transparency and a commitment to tackling corruption will be key in ensuring a safe and trustworthy business environment.
