Businessman charged over alleged sh300m gold deal
The prosecution alleges that Muwonge, with intent to defraud, obtained $85,300 from Mahomed Farouk, falsely pretending that he was exporting seven kilogrammes of gold to Dubai.
Accused businesman Issa Muwonge in the dock at City Hall Court in Kampala. (Photo by Barbara Kabahumuza)
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A businessman has been charged with obtaining money by false pretences after allegedly receiving $85,300 (about sh300m) from a foreign national in a disputed gold export deal.
Issa Muwonge, 49, a businessman and resident of Bulindo, Kiira Municipality in Wakiso district, appeared before City Hall Senior Principal Grade One Magistrate Nicholas Aisu and denied the charges.
He is accused of obtaining money by false pretences, contrary to Section 285 of the Penal Code Act, Cap 128.
According to the charge sheet, Muwonge and others, still at large, allegedly committed the offence on August 2, 2026, at Max Metal Refinery in Bukoto, Kampala district.
The prosecution alleges that Muwonge, with intent to defraud, obtained $85,300 from Mahomed Farouk, falsely pretending that he was exporting seven kilogrammes of gold to Dubai.
The prosecution alleges that Malida had learnt about the company online and checked with the Ministry of Energy and Mineral Development, where he allegedly confirmed that the company was registered to deal in minerals under licence number MDL 20260639.
He also allegedly confirmed that the company was registered with the Uganda Registration Services Bureau (URSB).
According to the prosecution, on August 2, 2026, Malida was taken to the company premises, where he and the sellers signed a sales and purchase agreement for the export of seven kilogrammes of gold to Dubai at $80,000 per kilogramme.
The gold was allegedly smelted in Malida’s presence, with Muwonge identified as the seller.
Malida was allegedly promised that the gold would be exported to Dubai within three days, after which he travelled there and waited.
However, according to the prosecution, the gold was not exported as promised. The complainant was allegedly given false information and was also asked to provide more money.
The prosecution alleges that the total amount of $85,300 was paid to Mahad Asiimwe and Issa Muwonge of Max Metal.
State attorney Miriam Akite told the court that investigations into the case were complete and asked the court to set a hearing date.
The magistrate subsequently adjourned the case to September 15, 2026, for a bail hearing.
The allegations against Muwonge have not been proved in court.