Police in Iganga District have arrested four suspects believed to be part of a major counterfeit dollar racket operating in Namungalwe Town Council.
The arrests followed an intelligence-led operation aimed at cracking down on a network accused of circulating fake currency and robbing unsuspecting victims.
According to ASP Michael Kasadha, the Busoga East Regional Police Spokesperson, the suspects were identified as Juma Isabirye alias Magezi, 30, a businessman from Buwenge Town Council in Jinja District; Shafik Bamwitire, 22, also a businessman from Buwenge; Michael Badagawa, 24, a chapati baker and resident of Kawete Village, Namungalwe Town Council; and Isaac Nyende Augustus, 30, of Nsinze, Namungalwe Town Council in Iganga District.
ASP Kasadha said the arrests were made at around 1:00pm on Monday, after a series of reported incidents involving fake dollar exchanges and violent robberies dating back to October.
“From October 2025 to date, we have registered several cases of counterfeit dollar fraud and cash robberies in the areas of Kawete and Nsinze,” Mr Kasadha said. “The victims are often lured from as far as the Central Region into fake dollar exchange deals.”
He explained that the victims are first shown genuine US dollars, which convinces them to surrender large sums of Ugandan currency before being violently robbed.
Several incidents have been linked to the group, including the robbery of Shs6 million from Muyingo Christopher Nathan, 45, of Bunga Church Zone, Kampala; Shs6.9 million from Ssemakula Bashir, 46, of Kiboba Village, Nama Sub County in Mukono District; and Shs18 million from Okurut Ben, 30, a businessman from Igaitani Village, Namayemba Town Council.
“These repeated criminal occurrences have created public fear and insecurity, particularly among business people and visitors from distant areas,” ASP Kasadha added.
During the operation, police recovered an iPad belonging to one of the victims, which has since been exhibited as evidence. U
pon interrogation, Isabirye Juma, identified as the ring leader, reportedly confessed that some community members have been benefiting from the robberies, offering protection and support to the group.
ASP Kasadha said investigations are ongoing to arrest more suspects connected to the racket.
“We caution the public against falling victim to counterfeit currency scams, especially those involving fake US dollars,” he warned. “These conmen often lure unsuspecting people with promises of quick profits, leading to significant financial losses”.