Euro Gold Refinery chief executive officer Benard Feni has been released on police bond following his arrest in connection with an alleged Shs13 billion gold fraud involving Dubai-based investors.
Feni, also known as Mungu Feni, was released on Friday, October 2, nearly a month after he was arrested and detained at the Special Investigations Unit (SIU) in Kireka.
He was released alongside another suspect identified only as Agaba, a forex handler who investigators allege facilitated payments from one of the complainants’ dollar wallet accounts.
Feni and Agaba were arrested on September 8 following investigations into allegations that two Sudanese gold buyers based in Dubai lost about $3.5 million, equivalent to approximately Shs13 billion, in transactions conducted in Uganda.
The investigation followed a complaint by the investors to President Yoweri Museveni, who subsequently directed security agencies to investigate the allegations, establish what happened to the investors’ money and recover it if the claims were substantiated.
In a letter to Inspector General of Police Abas Byakagaba, Museveni said the investors, Gafar Ibrahim and Nagi Mohammed, had written to him on June 29, 2026, after allegedly failing to obtain assistance from several government agencies.
The President directed Byakagaba to personally oversee the investigation and gave security agencies two months to resolve the matter.
Feni’s release came after security agencies had raided his Buziga residence and Euro Gold-related premises as investigators sought additional evidence concerning the alleged transactions.
Investigators are also looking for a Euro Gold employee identified only as Sam, who is alleged to have processed material at the refinery connected to the disputed transaction.
The investigation centres on allegations that gold linked to the Dubai investors disappeared after being stored with Duck Hunters Security Company in Uganda.
Other people arrested in connection with the investigation include UPDF Major Nicholas Ntakirwa, former Duck Hunters Security Company official Ali Mohammed and Trevor Besigye.
Feni, however, has denied involvement in the alleged fraud. His lawyers have maintained that Euro Gold Refinery only provided testing and refining services and that the gold was handled in the presence of the clients.
The refinery has said its role was limited to testing and confirming the weight and purity of gold brought to its facility.
No bond amount disclosed
Although Feni has been released, the amount attached to his police bond has not been publicly disclosed.
There is also no reported court charge against him arising from the Shs13 billion allegations. His release on police bond therefore does not amount to an acquittal or a finding that he committed no offence. He remains a suspect as investigations continue.
Police are expected to continue tracing the movement of the investors’ money, the gold consignment and the roles allegedly played by the various individuals under investigation.
The case has also raised fresh questions about regulation and oversight of Uganda’s gold trade, particularly the growing number of gold dealers and refineries operating in the country.
Museveni has questioned whether Uganda should have fewer, more closely monitored gold traders, preferably companies with identifiable refineries that can be held accountable.
Feni’s arrest also comes months after Euro Gold Refinery secured a contract to supply gold to the Bank of Uganda under the central bank’s Domestic Gold Purchase Programme. Feni had said the contract was awarded through a competitive bidding process.
The investigation remains ongoing and the allegations against Feni and the other suspects have not been proved in court.
