Four suspects are in custody after the State House Anti-Corruption Unit (Shacu) busted a criminal racket that has been impersonating top government officials to swindle foreign investors in bogus procurement deals.
The latest arrest was announced Wednesday by Israel Ochwo, the deputy head of Shacu, during a press briefing in Kampala.
The suspects had targeted a Turkish businessman, Mr Furkan Gumran, and his company, Sirus Blue Chemical Manufacturing Co. Ltd, with a fabricated $4.95 million (about Shs18 billion) contract to supply AD BLUE solution to the Ministry of Energy and Mineral Development.
Ochwo revealed that this particular operation marked a turning point in Uganda’s fight against investor fraud, as it was foiled before the criminals could receive any funds.
“This time we were lucky to get to the case before any money exchanged hands,” he said.
“We worked closely with Mr Furkan, who cooperated fully and helped us trap the culprits at AHA Towers where the handover was supposed to happen.”
The suspects, whose names were withheld pending further investigation, allegedly used forged documents, fake government websites, and even government premises to lend credibility to their scheme.
They also reportedly conspired with rogue lawyers and bank officials to sidestep anti-money laundering safeguards.
A Persistent Scam Targeting Foreign Investors
The Shacu statement painted a disturbing picture of a growing criminal enterprise that has exploited dozens of foreign investors in recent years, costing companies millions of dollars.
“These fraudsters front themselves as members of non-existent ‘Special Contracts Committees’ supposedly affiliated with Parliament, the Office of the President, or the NRM party,” Ochwo said.
“They forge correspondences, stamp fake contracts, and even operate websites with national emblems to deceive investors into believing they are engaging with legitimate government agencies.”
In many cases, the investors were lured into Kampala offices located inside or near government buildings — a tactic that misled them into believing the deals were authentic.
Past victims include:
- KG Unlimited LLC (USA): Lost Shs2.2 billion in a fake water plant procurement deal linked to the Ministry of Agriculture.
- Verteco Company Ltd (South Africa): Lost $1.4 million in a supposed Ministry of Energy contract.
- Guner Kuzu Construction Ltd (Turkey): Defrauded of $3.8 million in a fake hospital construction tender.
- Air Options Pty Ltd (South Africa): Scammed out of $1.7 million in a fictitious air conditioning supply deal.
- Tecmo Automation Pty Ltd (South Africa): Lost $410,520 in a bogus fuel supply agreement.
- Marce’ Firefighting Technology Pty (South Africa): Duped of $60,000 in a fake firefighting equipment deal.
- Iskenderun Fertilizers Inc (Turkey): Lost 28 containers of fertilizer worth $540,000.
- Sidari Ltd (Kenya): Lost nearly $198,000 after being conned by Ssekidde Lubowa Godfrey, a man who impersonated a senior army officer and claimed links to the Office of the President and Bank of Uganda. Ssekidde is currently on the run.
In each case, the scams were only reported after the money had been lost, complicating recovery efforts.
“Often, the victims flee the country and give up hope. Meanwhile, the fraudsters vanish or move funds across borders,” said Ochwo.
A Turning Point in Anti-Fraud Operations
What makes the latest case involving Mr Furkan exceptional, Shacu said, is that it was stopped before the scam succeeded — thanks to the investor’s vigilance and the Unit’s quick response.
“We commend Mr Furkan for his courage and cooperation. This arrest shows that if investors act quickly and alert us early, these criminals can be apprehended and prosecuted,” Ochwo said.
“We urge all potential investors to consult us before committing to deals involving government procurements.”
Mr Furkan, who was present at the press briefing, briefly shared his experience, thanking Ugandan authorities for their swift intervention and urging fellow foreign investors to verify business dealings with Shacu.
The unit runs a 24/7 hotline (0800500202) and a WhatsApp number (0778202500), and also encourages inquiries through its sister agency, the State House Investor Protection Unit (info@statehouseinvest.go.ug, 032610063 or WhatsApp 0764001244).
Meanwhile, Shacu appealed to the public to help trace Godfrey Ssekidde Lubowa, alias “Maj. Gen. Sam Kiwanuka,” who is linked to several high-profile scams and is still at large.
Authorities believe he continues to impersonate senior military officers to defraud foreign businesses.
The investigation into the latest attempted scam is ongoing, and authorities say more arrests could follow as electronic evidence is analysed.
“This is just one piece of a much larger web of deceit,” Ochwo said. “Our message to fraudsters is clear: we are watching, and we are coming for you.”
