Ugandan gospel artist, entrepreneur and philanthropist Benard Feni, popularly known as Mungu Feni, has been arrested over an alleged Ush13 billion ($3.3 million) gold fraud involving foreign investors, placing the founder of EuroGold Refinery at the centre of a widening criminal investigation.

Benard Feni was arrested on September 8, 2026, and detained at the Special Investigations Unit in Kireka alongside three other suspects, according to Ugandan media reports. The arrests followed a directive from President Yoweri Museveni after two Sudanese investors complained that they had lost hundreds of thousands of dollars in a gold transaction.

How the alleged $3.3 million gold fraud unfolded

The case centres on investors who travelled to Uganda seeking gold suppliers. Investigators say they initially purchased 10 kilograms of gold for $700,000 before being introduced to a second transaction involving 30 kilograms valued at $2.4 million.

The investors reportedly had the second consignment tested at Azzura Refinery before taking it to Duck Hunters Security Company for storage pending export to Dubai.

The gold subsequently disappeared, prompting the investors to return to Uganda and report the matter to authorities. The combined transactions are estimated at approximately $3.3 million, equivalent to about Ush13 billion.

Why Mungu Feni was arrested

Investigators are examining Feni’s alleged role in the transaction, including whether he connected other individuals involved in the deal and how the money and gold moved between the parties.

Benard Feni was arrested alongside Trevor Besigye, UPDF Maj. Nicholas Ntakirwa and a suspect identified as Agaba, while former Duck Hunters Security Company managing director Ali Mohammed was also arrested in connection with the investigation. Security agencies subsequently raided EuroGold’s offices and Feni’s residence as part of the probe.

Mohammed had previously been charged over the alleged disappearance of the 30-kilogram gold consignment and was remanded to Luzira Prison. Investigators have also examined allegations involving documents allegedly used in connection with his earlier bail.

Feni’s gold business under scrutiny

The investigation comes months after EuroGold Refinery secured a contract to supply gold to the Bank of Uganda under its Domestic Gold Purchase Programme. Benard Feni said the contract was awarded through a competitive bidding process.

EuroGold had also expanded internationally, opening an office in Dubai in March 2026 to serve international gold traders and investors.

For now, Feni remains a suspect rather than a convicted offender. The investigation is expected to establish his alleged role, trace the missing funds and gold, and determine whether other people participated in the transaction.

All allegations against Feni and the other suspects remain subject to investigation and determination by the courts.