Iganga, Uganda: The Territorial Police in Busoga East Region have dismantled a notorious counterfeit dollar and robbery racket operating across Iganga and Jinja districts, arresting four key suspects in a major intelligence-led operation conducted in Namungalwe Town Council, Iganga District.
The crackdown follows weeks of public outcry and multiple complaints from victims who were conned and violently robbed of millions of shillings in fake foreign currency exchange deals.
Police spokesperson ASP Micheal Kasadha confirmed the arrest of four suspects linked to the racket, which has reportedly defrauded victims of more than UGX 30 million in the past month alone.
The suspects have been identified as Isabirye Juma alias Magezi, 30, a businessman, resident of Buwenge Town Council, Jinja District; Bamwitire Shafik, 22, a businessman, also from Buwenge Town Council; Badagawa Micheal, 24, a chapati baker, resident of Kawete Village, Namungalwe Town Council, Iganga District; and Nyende Isaac Augustus, 30, resident of Nsinze, Namungalwe Town Council, Iganga District.
According to police, the group has for months lured unsuspecting victims from Kampala, Mukono, and other regions with promises of lucrative foreign exchange deals in U.S. dollars, only to attack and rob them once they handed over cash.
“From October 2025 to date, we have registered several cases of fake dollar fraud and cash robbery in Iganga and nearby areas. On November 6th, at around 1:00 pm, an intelligence-led operation led to the arrest of the ring leaders,” ASP Kasadha told DailyExpress in a statement.
How the Fake Dollar Racket Operated
Police investigations reveal that the suspects operated from Kawete Trading Centre and Bulumwagi Village, staging fake exchange businesses.
They reportedly began by showing victims genuine U.S. dollar notes, which built trust and encouraged them to surrender large sums of Ugandan currency. Once the transaction was set, the victims would be ambushed and violently robbed before realizing the scam.
“Victims were typically invited to Iganga under the pretense of a profitable deal, only to be robbed after being convinced with genuine notes in the first interaction,” Kasadha said.
Police records show at least three major robberies linked to the same syndicate:
On October 27, 2025, Muyingo Christopher Nathan (45), resident of Bunga Church Zone, Kampala, robbed of UGX 6 million at Kawete, while the next day, on October 28, 2025, Ssemakula Bashir (46), from Mukono, was robbed of UGX 6.9 million in Namungalwe Town Council and on October 29, 2025, Okurut Ben (30), businessman from Namayemba, was robbed of UGX 18 million at Bulamagi Sub-county.
During the arrests, police recovered an iPad phone belonging to one of the victims as part of the evidence now exhibited at Iganga Central Police Station (CPS).
Inside the Racket: Locals Also Involved
ASP Kasadha revealed that upon interrogation, Isabirye Juma, believed to be the ringleader, confessed that the gang often paid some community members a share of the stolen money to protect their operations and obstruct police investigations.
“These criminals have embedded themselves within the local communities. Some residents knowingly support or hide them in exchange for a cut from each robbery,” Kasadha explained.
The criminal network, police say, has been operating freely across Iganga, Jinja, and Bugweri, targeting individuals carrying large sums of cash, particularly traders and small business owners.
ASP Kasadha cautioned the public against engaging in illegal currency exchange transactions and falling for schemes promising “quick profits” or “cheap dollars.” “These scammers lure unsuspecting victims with fake currency and promises of easy wealth. We urge the public to transact only with licensed forex dealers and report suspicious offers immediately,” he said.
Police have since launched a wider manhunt for additional suspects still at large, believed to be hiding within Bulumwagi and Namungalwe.
Locals welcomed the arrests, saying the syndicate had caused fear and insecurity across Namungalwe and Kawete for months. “We have lost so much money to these fake dollar people. They move around in cars pretending to be business people, but they are robbers. We are happy police have finally acted,” said one trader at Kawete Market.
By press time, the suspects were still detained at Iganga CPS pending charges of aggravated robbery, fraud, and dealing in counterfeit currency, under sections of the Penal Code Act.
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