Police arrested four suspects in connection with a Shs18.1b fraud attempt targeting a Turkish investor. The suspects, including a medical doctor, impersonated senior government officials to deceive the investor with a fake government procurement deal.
Among the suspects were Dr. Charles Mulyansaka, who posed as Chairperson of a fictitious Special Contracts Committee, Moses Mwesigwa as Director of Procurement, Peter Watum as Secretary, and Moses Seruma as the Communication and IT Specialist.
According to Mr. Israel Ochwo, Deputy Head of Legal at the State House Anti-Corruption Unit (SHACU), the fraudsters used counterfeit government websites and fake identities to lure foreign investors. Consequently, they targeted Turkish businessman Furkan Gumran and his company, Sirus Blue Chemical Manufacturing Co. Ltd.
They offered him a fake contract worth $4.95 million (about Shs18.1b) to supply AD BLUE solution to the Ministry of Energy and Mineral Development. However, Mr. Ochwo stated, “This operation was a breakthrough. We managed to intercept the criminals before they could transfer any money, which rarely happens.”
The operation’s success was largely due to Mr. Gumran’s vigilance. Upon noticing irregularities in the documents, he reported the matter to SHACU. As a result, SHACU set up a sting operation and arrested the suspects at AHA Towers in Kampala, where they had arranged to receive the funds.
The suspects are also believed to have worked with rogue lawyers and bank officials to bypass anti-money laundering procedures and secretly move funds. These fraudsters impersonated members of fake ‘special contracts committees’ allegedly operating under Parliament, the Office of the President, or the ruling party. They forged letters, created counterfeit contracts, and ran fake websites with government emblems to convince investors they were legitimate.
To further enhance their credibility, the suspects often held meetings near real government offices in Kampala, which created the illusion of authenticity.
Typically, fraud like this is discovered only after the money has been transferred, making recovery extremely difficult. Victims often flee the country, while the fraudsters disappear or launder the money through international networks. Therefore, vigilance is essential.
Mr. Furkan Gumran, the targeted investor, explained how the fraudsters first contacted him via social media. They offered assistance in securing a government supply contract and provided him with all the required documents, including contracts and travel paperwork. They even picked him up from the airport, making everything seem legitimate. However, upon verifying the documents, Mr. Gumran discovered they were fake.
“I appreciate the efforts of the Anti-Corruption Unit and the Ugandan police. My advice to other investors is to be cautious and verify every detail before committing to anything,” Mr. Gumran stated.
Furthermore, authorities are still searching for Godfrey Ssekidde Lubowa, also known as Maj. Gen. Sam Kiwanuka, who is linked to several high-profile scams and remains at large.
Mr. Ochwo urged both local and international investors to conduct thorough background checks before engaging with any government-linked entities. “Uganda welcomes investment, but we must remain vigilant. These scams tarnish our reputation and rob our country of valuable economic opportunities. We will continue to pursue and expose those behind these schemes,” he said.
Recent fraud cases include:
- KG Unlimited LLC (USA) – lost Shs2.2 billion in a fake Ministry of Agriculture water plant deal.
- Verteco Company Ltd (South Africa) – defrauded of $1.4 million in a fake Ministry of Energy contract.
- Guner Kuzu Construction Ltd (Turkey) – lost $3.8 million in a bogus hospital tender.
- Air Options Pty Ltd (South Africa) – lost $1.7 million in a fake air conditioning supply deal.
- Tecmo Automation Pty Ltd (South Africa) – defrauded of $410,520 in a fake fuel supply agreement.
- Marce’ Firefighting Technology Pty (South Africa) – lost $60,000 in a bogus firefighting equipment contract.
- Iskenderun Fertilizers Inc (Turkey) – lost 28 containers of fertilizer worth $540,000.
These cases highlight the importance of vigilance and thorough due diligence, especially for foreign investors. Therefore, anyone considering investment in Uganda or elsewhere should always verify information and proceed with caution.
