Two Dubai-based Sudanese investors defrauded after 30kg consignment tested at Azzura Refinery vanishes from Duck Hunters Security Company; multiple arrests made as manhunt continues for fugitives
BY: GOLD MINERS CLUB DATE: 30-09-2026
KAMPALA, UGANDA — A massive scandal has rocked Uganda’s lucrative gold export sector following direct orders from President Yoweri Museveni. The President has ordered the arrest of directors and executives of Euro Gold Refinery Uganda Limited, culminating in the detention of the company’s CEO, Benard Feni.
The dramatic fallout follows allegations of a sophisticated fraud involving 30 kilograms of counterfeit gold and a multi-million-dollar scam, casting a shadow over the country’s efforts to formalise its mineral trade.
The Incident: The Vanishing 30kg Consignment
At the heart of the scandal is a specific transaction that has left two Dubai-based Sudanese investors defrauded of millions of dollars.
According to investigation reports, the two investors were introduced to a gold trading opportunity by intermediaries connected to Euro Gold Refinery. The deal involved a consignment of 30 kilograms of gold valued at approximately $2.4 million USD.
Before this transaction, the same investors had successfully purchased 10 kilograms of gold worth $700,000 from the same syndicate. This initial “smaller” deal was allegedly used as bait to build trust and convince the investors of the legitimacy of the operation.
The Sequence of Events
The transaction unfolded as follows:
- Introduction and Initial Purchase: The two Dubai-based Sudanese investors were introduced to Benard Feni and his team as reputable gold dealers with access to large quantities of refined gold from the Democratic Republic of Congo (DRC).
- **First Successful Deal (10kg – $700,000):** To establish credibility, the syndicate facilitated a smaller transaction involving 10 kilograms of gold worth $700,000. This deal reportedly went smoothly, convincing the investors that they were dealing with legitimate operators.
- **The Bigger Deal (30kg – $2.4 Million):** Buoyed by the success of the first transaction, the investors agreed to a larger deal involving 30 kilograms of gold valued at $2.4 million USD.
- Testing at Azzura Refinery: The 30kg consignment was taken to Azzura Refinery in Kampala for assay and testing. Sources indicate that the gold tested as genuine at this stage, further reassuring the investors.
- Transfer to Duck Hunters Security Company: Following the successful test, the consignment was moved to Duck Hunters Security Company, a private security firm in Kampala, for safekeeping pending export to Dubai. The investors were reportedly told that the gold would remain secured until all export documentation and payments were finalized.
- The Disappearance: When the investors returned to collect the consignment for export, the gold had vanished. Both Euro Gold Refinery officials and Duck Hunters Security Company staff allegedly gave conflicting accounts of what happened to the 30kg consignment.
- The Discovery of Fraud: Upon further investigation, it was discovered that the gold that had been tested at Azzura Refinery was not the same consignment that was allegedly stored at Duck Hunters. Investigators believe the syndicate swapped the genuine gold with counterfeit bars—gold-plated steel or tungsten—after the testing was completed.
The Key Question: Where Did the Gold Go?
The disappearance of the 30kg consignment from a secured facility has raised serious questions about the involvement of Duck Hunters Security Company. Investigators are examining whether:
- The security company was complicit in the theft.
- The gold was never actually stored at the facility.
- The consignment was swapped before it reached the storage facility.
- Insider collusion facilitated the removal of the gold without documentation.
The two investors, whose identities are being withheld for security reasons, are reportedly cooperating with Ugandan authorities and have provided detailed documentation of their transactions.
The Presidential Order
According to sources within the State House and security agencies, President Museveni intervened personally after receiving intelligence reports regarding the illicit activities of the refinery. The President reportedly expressed fury over the reputational damage the scam could inflict on Uganda’s image as a legitimate gold trading hub.
The order led to a swift operation by the Criminal Investigations Directorate (CID) and the State House Anti-Corruption Unit. The operation culminated in the arrest of Benard Feni, the CEO of Euro Gold Refinery, who is accused of leading a syndicate that duped investors and the state.
The Scam: 30kg of Fake Gold
The crux of the allegations centres on the botched transaction involving 30 kilograms of gold. Investigators allege that Feni and his associates presented refined gold bars to potential buyers—reportedly including the two Dubai-based Sudanese investors—that were actually gold-plated steel or tungsten.
The scam, estimated to be worth millions of dollars, allegedly involved:
- Counterfeit Consignments: Presenting fake gold as genuine to secure advance payments.
- Gold Swapping: Replacing tested genuine gold with counterfeit bars after assay.
- Non-Existent Refinery Capacity: Claiming to possess the technical capacity to refine large quantities of gold when the facility was allegedly incapable of processing such volumes.
- Fraudulent Documentation: Forging export permits and assay certificates to legitimise the fake consignments.
- Abuse of Trusted Institutions: Exploiting reputable entities like Azzura Refinery and Duck Hunters Security Company to create an illusion of legitimacy.
Full List of Suspects and Persons of Interest
Investigations have revealed a complex network of individuals allegedly involved in the scam. Below are the key figures:
1. Benard Feni – CEO, Euro Gold Refinery (Arrested)
The primary suspect, Benard Feni, was arrested over the weekend at his residence in Kololo, Kampala. He is accused of masterminding the entire operation, using his position as CEO to lure investors into fraudulent gold deals. Sources indicate he has been uncooperative during interrogation, demanding to speak to his lawyers before answering any questions.
2. Sarah Nakamya – Finance Director (Arrested)
Sarah Nakamya, the Finance Director of Euro Gold Refinery, was arrested alongside Feni. She is accused of handling the financial transactions related to the scam, including receiving over $2 million from the two Sudanese investors. Investigators believe she operated multiple bank accounts used to launder the proceeds of the fraud.
3. Robert Kiggundu – Operations Manager (On the Run)
Robert Kiggundu, who managed the day-to-day operations of the refinery, is currently on the run. Police have issued a wanted notice for his arrest. Kiggundu is believed to have coordinated the acquisition and transport of the fake gold consignments from the Democratic Republic of Congo (DRC) and orchestrated the swap after testing at Azzura Refinery. Sources say he crossed into Kenya shortly before the arrests were made.
4. Ambassador James Mwesigwa – Board Chairman (Under Investigation)
Ambassador James Mwesigwa, the Board Chairman of Euro Gold Refinery, is under investigation for his alleged role in providing political cover for the company’s illegal activities. While he has not been arrested, security sources indicate he is being questioned about his knowledge of the fraudulent transactions. His diplomatic connections are believed to have shielded the company from regulatory scrutiny for months.
5. Patricia Aciro – Company Secretary (Detained)
Patricia Aciro, the Company Secretary, was detained for questioning. She is accused of preparing and notarising fraudulent documents, including fake assay certificates from Azzura Refinery and forged export permits. Investigators found several forged documents at her office in Kampala.
6. Hassan Ssemakula – External Auditor (Wanted)
Hassan Ssemakula, an external auditor who allegedly signed off on the company’s inflated financial statements, is wanted by police. He is accused of certifying non-existent gold reserves, which helped convince investors of the company’s legitimacy. His whereabouts remain unknown.
7. Ivan Ddamulira – Logistics Coordinator (Arrested)
Ivan Ddamulira, responsible for logistics and transportation, was arrested at Entebbe International Airport as he attempted to flee the country. He is accused of coordinating the shipment of fake gold consignments and bribing customs officials to bypass inspections. He is also believed to have coordinated the transfer of the 30kg consignment from Azzura Refinery to Duck Hunters Security Company.
8. Officials at Duck Hunters Security Company (Under Investigation)
Several employees and managers at Duck Hunters Security Company are under investigation for their alleged role in the disappearance of the 30kg consignment. Investigators are examining whether the security firm was complicit in the theft or whether they were also deceived by the syndicate. The company’s management has denied any wrongdoing and claims to be cooperating fully with authorities.
9. Officials at Azzura Refinery (Under Investigation)
While Azzura Refinery is not accused of direct involvement in the fraud, investigators are examining whether any staff members were compromised or bribed to provide falsified assay certificates or to look the other way during the testing process. The refinery has issued a statement denying any involvement and pledging full cooperation with the investigation.
10. Unknown Foreign Nationals – Investors/Buyers (Under Investigation)
Investigators are also examining the role of several foreign nationals, reportedly from the United Arab Emirates and India, who were either victims or accomplices in the scam. Sources indicate that some of these individuals may have been aware that the gold was counterfeit and were attempting to defraud their own downstream buyers. Interpol has been contacted for assistance.
Arrest and Investigation
Benard Feni was taken into custody over the weekend. Police sources indicate that he is currently being interrogated at the Special Investigations Unit in Kireka. Authorities are hunting for other directors of the company who are believed to be on the run.
“We have the CEO in custody, and we are following leads on the other directors,” a senior police official told reporters on condition of anonymity. “The President is keen on cleaning up this sector. This is not just a financial crime; it is a national security issue.”
The State House Anti-Corruption Unit has taken a leading role in the investigation, signalling the gravity with which the Museveni administration views the case. The unit is reportedly working closely with the Financial Intelligence Authority (FIA) to trace the money trail.
The Money Trail
Preliminary investigations suggest that the $2.4 million paid by the Sudanese investors was wired to multiple bank accounts in Uganda, Kenya, and the United Arab Emirates. Some of the funds have reportedly been traced to accounts linked to Sarah Nakamya and shell companies registered in the names of Robert Kiggundu’s relatives.
Background: Uganda’s Gold Problem
This case highlights the persistent challenges facing Uganda’s mineral sector. Uganda has attempted to position itself as a major gold refining hub in East Africa, with President Museveni often championing the sector as a key driver of economic growth.
However, the industry has been plagued by scandals. In 2023, the Uganda Revenue Authority (URA) and the Bank of Uganda clashed over discrepancies in gold export figures. A previous high-profile case involved the controversial “Crane Bank” gold scam, where fake gold was used to secure massive loans, leading to the collapse of the bank.
Uganda’s gold is largely sourced from artisanal miners in the Democratic Republic of Congo (DRC) and South Sudan, often smuggled across borders. Refineries in Kampala are supposed to formalise this trade, but criminal syndicates frequently use legitimate licenses to launder money and commit fraud.
Previous Cases Involving Similar Syndicates
- Crane Bank Gold Scandal (2016): Businessman Haruna Ssentongo and others were accused of using fake gold to secure loans worth billions of shillings, contributing to the bank’s collapse.
- Uganda Airlines Gold Scam (2019): A fake gold deal involving officials from Uganda Airlines and external conmen led to the loss of millions of dollars.
These cases demonstrate a pattern of fraud that has gone unpunished for years, emboldening criminals to continue operating.
Euro Gold Refinery’s Defense
Attempts to reach Euro Gold Refinery’s legal representatives for comment were unsuccessful. However, a junior employee at the company’s offices in Kampala, who spoke on condition of anonymity, claimed the arrest was a misunderstanding regarding a business dispute with a supplier.
“The CEO is a legitimate businessman. This might be a case of a disgruntled client trying to extort money,” the employee said, refusing to elaborate further.
International Implications
The involvement of foreign nationals and the cross-border nature of the scam have raised concerns about Uganda’s compliance with international anti-money laundering standards. The Financial Action Task Force (FATF) has previously flagged Uganda for deficiencies in its regulatory framework.
The fact that the victims are Dubai-based Sudanese investors adds a diplomatic dimension to the case. Ugandan authorities are reportedly in contact with their counterparts in the UAE to facilitate the investigation and possible recovery of funds.
If the allegations are proven, Uganda could face increased scrutiny from international partners and potential sanctions on its gold exports.
Implications
The arrest of Benard Feni and his associates is likely to send shockwaves through the small but influential community of gold traders in Kampala. It signals a potential crackdown by the Museveni administration on “briefcase” gold dealers who operate without proper mining or refining credentials.
Legal experts suggest that if convicted, Feni and his associates face charges of obtaining money by pretence, forgery, theft, and possibly money laundering, which carry lengthy prison sentences under Ugandan law.
As investigations continue, the focus now shifts to whether the state can recover the alleged millions lost in the scam and whether this will be the catalyst needed to truly reform Uganda’s gold sector.
Summary of Key Figures
| Name | Position | Status |
|---|---|---|
| Benard Feni | CEO, Euro Gold Refinery | Arrested |
| Sarah Nakamya | Finance Director | Arrested |
| Robert Kiggundu | Operations Manager | On the Run |
| Ambassador James Mwesigwa | Board Chairman | Under Investigation |
| Patricia Aciro | Company Secretary | Detained |
| Hassan Ssemakula | External Auditor | Wanted |
| Ivan Ddamulira | Logistics Coordinator | Arrested |
| Duck Hunters Security Officials | Storage Facility | Under Investigation |
| Azzura Refinery Officials | Testing Facility | Under Investigation |
| Foreign Nationals | Investors/Buyers | Under Investigation |
Timeline of Events
| Date | Event |
|---|---|
| Earlier | Two Dubai-based Sudanese investors purchase 10kg of gold worth $700,000 from the syndicate |
| Days Later | Investors agree to purchase 30kg of gold valued at $2.4 million |
| Transaction Day | 30kg consignment tested at Azzura Refinery and confirmed as genuine |
| Same Day | Consignment transferred to Duck Hunters Security Company for storage |
| Later | Consignment vanishes from Duck Hunters Security Company |
| Following Weeks | Investors discover they have been defrauded; report to authorities |
| Recent | President Museveni orders arrests |
| Present | Benard Feni and others arrested; manhunt for fugitives continues |
References:
- Uganda Police Force Press Briefing (Internal Memo)
- State House Anti-Corruption Unit Reports
- Previous investigative reports on Uganda’s Gold Export discrepancies (2023-2024)
- Interviews with CID sources in Kireka
- Financial Intelligence Authority (FIA) Uganda Reports
- Interpol Uganda Office Correspondence
- Statements from Azzura Refinery and Duck Hunters Security Company
Disclaimer: All individuals mentioned in this article are presumed innocent until proven guilty in a court of law. The information presented is based on ongoing investigations and official statements from law enforcement agencies.
