Kampala, Uganda | The Uganda Revenue Authority (URA) has arrested two men accused of orchestrating a complex export fraud scheme that allegedly cost a Congolese businessman more than UGX 36.8 million and US $15,000.
Frank Mugisha and Muhumuza George are facing charges of obtaining money by false pretence, falsifying customs declarations, and manipulating export documentation with the intention of defrauding investors.
According to URA investigators, the arrests followed a complaint by Masereka Musavuli, a businessman from the Democratic Republic of Congo (DRC), who said the pair convinced him to pay for 15,000 cartons of “Super Match” cigarettes they claimed were being held at the URA customs warehouse in Nakawa.
Investigators said Masereka had been told the cigarettes were intercepted en route from Kenya and could be exported to the DRC once the required fees were paid.
Mugisha reportedly introduced Muhumuza as the owner of the consignment and took Masereka to the customs warehouse to view sacks said to contain the cigarettes.
However, URA officers explained that Masereka was never allowed inside, with the suspects claiming entry would only be possible after processing the necessary documentation.
URA intelligence officials said Masereka was first issued an expired Payment Reference Number on 28 April 2025 before being given a new assessment for the same amount.
He later paid UGX 36.88 million through a bank in Kampala, and investigators said he was instructed to buy packing materials for a shipment that ultimately never took place.
Officials noted that the truck Masereka hired had even been weighed at the URA premises as part of the ruse, but no loading occurred because the cigarettes did not exist.
The truck was reportedly impounded for three weeks before being released, and Masereka never received any goods.
He later claimed that Mugisha had taken an additional US $15,000 from him as facilitation fees. URA has since opened a case file, GEF 145/2025, as investigations continue.
Investigators said there was no record of any Super Match cigarettes belonging to the suspects, nor any indication that the alleged shipment had ever been declared for export.
Officials concluded that the export entry appeared to have been created solely to mislead the businessman into making payments.
Alfred Kyamanywa, the Acting Manager of URA Intelligence, said the public needed to be cautious of individuals claiming to sell impounded goods on behalf of the tax body.
He explained that URA did not sell contraband items such as cigarettes from its headquarters and that any seized cigarettes were disposed of strictly following legal procedures.
URA Commissioner General John R. Musinguzi condemned the alleged scam, saying the authority was committed to protecting business people from fraud.
He urged the public to report anyone claiming to sell goods on behalf of URA to the nearest police station or URA office, emphasising that the institution remained ready to take swift action.
He added that the arrests should serve as a warning to anyone attempting to misuse URA’s name for fraudulent purposes and said the authority intended to safeguard its reputation by ensuring that such offences were dealt with in accordance with the law.
