A South African company, Jordan Valley (Pty) Limited, has fallen victim to an elaborate scam allegedly orchestrated by Ugandan fraudsters posing as government officials.
The Johannesburg-based firm lost $311,500 (approximately UGX 1.1 billion) and electronic equipment valued at UGX 12.3 million in a fraudulent deal involving a non-existent IT supply contract worth $123.5 million (UGX 451 billion).
Genesis
The scam began in 2019 when Emmanuel Murumbi, an executive from Jordan Valley, was contacted via LinkedIn by a man identifying himself as Tunga Innocent Babigamba.
Presenting himself as a Ugandan businessman in engineering and construction, Babigamba proposed partnering to secure a lucrative IT supply contract for Uganda’s Ministry of Defence.
Babigamba introduced Murumbi to “Peter Kaweesa,” purportedly the secretary of the Ministry’s Tender Board. To reinforce the scheme’s authenticity, Kaweesa arrived at meetings flanked by armed escorts and hosted Murumbi in what appeared to be government offices.
Payments and Promises
Murumbi’s visits to Uganda in September and October 2019 led to multiple payments. These included $31,200 for company registration, $7,200 for vetting, and $24,000 for preliminary fees.
By December, Murumbi had delivered equipment samples and signed a preliminary contract. He was then required to pay $50,000 in bid fees and $489,441 as bid security, with total remittances eventually reaching $311,500.
Despite the payments, Murumbi grew suspicious due to the absence of formal agreements or tender documents. His requests for documentation were met with excuses, including claims that the deal was part of classified government contracts related to Uganda’s Covid-19 response.
Fraud Unveiled
The scheme unraveled in September 2020 when Murumbi sought clarity from Uganda’s High Commission in South Africa. A trade attaché confirmed the scam, explaining that the purported contract and tender processes were fabricated.
“This was a scam by people abusing government offices and high-level connections,” the official told him.
The scam highlights growing concerns over fraud in Uganda, where criminals exploit government institutions and unsuspecting investors.
While Murumbi has shared detailed communication and documents with authorities, it remains unclear whether any arrests have been made or the funds recovered.
