Gospel artist, entrepreneur and philanthropist Benard Feni, commonly known as Mungu Feni, who hails from Arua City in the West Nile region, has been arrested alongside four other suspects in connection with a reported Shs13 billion gold scam, following complaints from investors who allege that they were defrauded in a gold-related deal.
According to reports, Mungu Feni, who is also the founder and CEO of Eurogold Refinery SMC Ltd, was arrested alongside Trevor Besigye, a UPDF officer; Maj. Nicholas Ntakirwa; Agaba, who allegedly facilitated payments; and Ali Muhammed, the former managing director of Duck Hunters Security Company.
The report further states that President Yoweri Museveni, in a letter to Inspector General of Police Abas Byakagaba, said an investor had reported losing hundreds of thousands of dollars to alleged fraudsters and had unsuccessfully sought assistance from several security agencies.
According to investigators, the investors initially purchased 10 kilograms of gold worth USD 700,000 from another company before being introduced to a subsequent transaction involving 30 kilograms of gold valued at USD 2.4 million, approximately Shs8.8 billion.
The investors reportedly had the gold tested at Azzura Refinery before taking the consignment to Duck Hunters Security Company for storage pending export to Dubai. However, the consignment subsequently disappeared.
The investors returned to Uganda to establish what had happened, only to discover that they had allegedly been defrauded.
The total amount lost in the transactions is estimated at approximately USD3.5 million (Shs13 billion).
President Museveni has since ordered a probe into Mungu Feni's Eurogold Refinery Company, one of Uganda's prominent gold-dealing companies.
Meanwhile, Mungu Feni is reportedly being detained at the Special Investigation Unit (SIU) in Kireka, where he is being interrogated over his alleged connection to the gold fraud.
