Kampala Man Charged Over Shs170M Black Dollar Scam

A 46-year-old man has been formally charged at the Buganda Road Chief Magistrate’s Court in Kampala for allegedly obtaining Shs170 million from a businesswoman through a fraudulent black dollar cleaning scheme.

Ibrahim Katumba, also known as Ibra, appeared before Senior Principal Magistrate Winnie Nankya Jatiko on Monday, where he denied the charge of obtaining money by false pretence. According to the prosecution, Katumba and other accomplices still at large committed the offense between September and December 2025 along William Street.

The victim, 36-year-old businesswoman Lydia Nasike, detailed how the elaborate scam unfolded after she was approached by a longtime client named Sadi Damba. Damba allegedly convinced Nasike that he could secure US dollars from the United States embassy in Namibia, where he claimed to work in the financial department.

To trick the businesswoman, Damba demonstrated a fake restoration process using a box containing blackened paper notes. After applying a special powder and waiting a few minutes, the paper appeared to turn into genuine dollar bills. To build trust, Damba even accompanied Nasike to a local forex bureau, where two of the treated pieces were successfully exchanged for about Shs720,000.

Convinced by the demonstration, Nasike began paying large sums of money for purported cleaning chemicals and machinery. She initially handed over Shs50 million, followed by another Shs20 million and an additional Shs15 million for a special machine. Suspicion arose when Damba continually demanded more cash while becoming increasingly evasive, eventually cutting off all communication and prompting Nasike to report the matter to the police.

Following his not-guilty plea, Magistrate Nankya informed Katumba of his right to apply for bail and adjourned the matter to November 12 for further proceedings.

Read the full story on the Daily Monitor.