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Home Business

Four Held as State House Busts Syndicate Targeting Foreign Investors

Insight Post Uganda by Insight Post Uganda
July 23, 2025
in Business
Reading Time: 4 mins read
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Suspects paraded before press conference.

Suspects paraded before press conference.

KAMPALA, 23 July 2025 — Four suspects are in custody following a crackdown by the State House Anti-Corruption Unit (Shacu) on a criminal syndicate accused of impersonating high-ranking government officials to defraud foreign investors through fictitious procurement deals.

The arrests were announced Wednesday by Shacu Deputy Head, Israel Ochwo, during a press briefing in Kampala. The operation, he said, disrupted an elaborate scheme that had targeted Mr. Furkan Gumran, a Turkish businessman, and his company, Sirus Blue Chemical Manufacturing Co. Ltd.

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The fraudsters had allegedly presented Mr. Gumran with a fake $4.95 million (approximately Shs18 billion) contract to supply AD BLUE solution to the Ministry of Energy and Mineral Development.

Ochwo said the suspects were arrested before any money changed hands, marking a breakthrough in efforts to combat investment-related fraud.

“This time, we were fortunate to intervene early enough,” Ochwo said. “We worked closely with Mr. Furkan, who fully cooperated with our team and helped us apprehend the suspects at AHA Towers, where the handover was meant to take place.”

The suspects, whose identities have not yet been disclosed, are accused of forging documents, creating fake government websites, and even operating from locations designed to mimic official premises. Investigators believe they collaborated with rogue legal and banking personnel to circumvent anti-money laundering controls.

Growing Threat to Foreign Investors

Shacu officials described the scam as part of a broader, persistent trend of investor fraud in Uganda, where criminal networks pose as government representatives to exploit foreign companies.

“These individuals present themselves as members of non-existent ‘Special Contracts Committees’ allegedly linked to Parliament, the President’s Office, or the NRM party,” Ochwo said. “They use forged letters, fraudulent contracts, and fake websites bearing national insignia to appear legitimate.”

To further deceive their victims, the fraudsters often operate from buildings inside or near government offices, creating an illusion of authenticity.

Among the foreign companies that have fallen victim in the past include:

  • KG Unlimited LLC (USA) – Lost Shs2.2 billion in a fraudulent water plant contract linked to the Ministry of Agriculture.
  • Verteco Company Ltd (South Africa) – Scammed out of $1.4 million in a fake Ministry of Energy tender.
  • Guner Kuzu Construction Ltd (Turkey) – Defrauded of $3.8 million in a fictitious hospital project.
  • Air Options Pty Ltd (South Africa) – Lost $1.7 million in a sham air conditioning supply deal.
  • Tecmo Automation Pty Ltd (South Africa) – Swindled out of $410,520 in a fake fuel supply agreement.
  • Marce’ Firefighting Technology Pty (South Africa) – Defrauded of $60,000 in a bogus firefighting equipment contract.
  • Iskenderun Fertilizers Inc (Turkey) – Lost 28 containers of fertilizer worth $540,000.
  • Sidari Ltd (Kenya) – Lost nearly $198,000 after being conned by a man identified as Ssekidde Lubowa Godfrey, who claimed to be a senior army officer. He remains at large.

Most cases were only reported after significant losses had been incurred, making recovery difficult. In some instances, victims left the country without pursuing justice.

“By the time we’re alerted, the money is usually gone and the suspects have disappeared or moved the funds across borders,” Ochwo said.

A Case That Changed the Script

Shacu hailed the latest operation as a rare success story where the scheme was stopped before funds were transferred, thanks to Mr. Gumran’s vigilance and swift reporting.

“We commend Mr. Furkan for his courage and prompt action,” Ochwo said. “This proves that with early intervention, these fraudsters can be stopped and brought to justice.”

Mr. Gumran, who attended the briefing, thanked Ugandan authorities for their timely response and urged fellow investors to remain cautious and verify deals through official channels.

To assist potential investors, Shacu maintains a 24-hour toll-free hotline (0800500202) and a WhatsApp line (0778202500). It also works closely with the State House Investor Protection Unit, which can be reached via info@statehouseinvest.go.ug, 032610063, or WhatsApp 0764001244.

Meanwhile, authorities are appealing to the public for information leading to the arrest of Godfrey Ssekidde Lubowa, also known as “Maj. Gen. Sam Kiwanuka.” He is wanted in connection with multiple high-profile scams and is believed to still be impersonating security officials.

As investigations continue, more arrests are expected.

“This case is just the tip of the iceberg,” Ochwo said. “To those defrauding investors under the guise of government, be warned — we are watching, and we are closing in.”

Tags: State House Anti-corruption Unit
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