The Uganda Revenue Authority (URA) has scored a major breakthrough in its campaign against fraudulent clearing agents following the arrest of Bashir Luwaga, a long-time operator accused of conning traders out of millions of shillings.

Luwaga was arrested on 9 December, 2025, and detained at Jinja Road Police Station on allegations of tax evasion. He was later released on police bond on 11 December 2025 as investigations continue.

According to URA, the case unfolded on the night of 4 December 2025 when Customs Intelligence intercepted two trucks carrying 110,000 adult T-shirts that had been cleared under suspicious circumstances. The traders had reportedly paid Luwaga 40 million shillings to process the goods through a bonded warehouse in Namanve. Instead of paying the required taxes, he allegedly pocketed the money and diverted the goods.

A URA customs intelligence officer involved in the operation, who preferred anonymity, said the traders were shocked to discover that no taxes had been paid and their goods had been stolen.

“This is a classic example of how some clearing agents exploit the trust of businesses for personal gain,” the officer said.

Luwaga, who is believed to have operated with a wide network, went into hiding after the interception but was tracked down and arrested on 9 December.

URA estimates that his actions caused a loss of at least 100 million shillings in taxes for this single consignment. The authority also reports receiving more complaints from traders who claim to have been defrauded in similar ways.

“This arrest sends a clear message that URA is serious about cracking down on fraudulent clearing agents,” another customs intelligence officer noted. “We are committed to protecting businesses and ensuring that our revenue systems are not exploited by corrupt individuals.”

The agency estimates that corruption and revenue leakages, including those involving dishonest clearing agents, cost the country more than 450 billion shillings every year.

Investigators believe Luwaga’s arrest may help expose a wider network of accomplices behind such schemes. The impounded trucks have been taken to URA headquarters in Nakawa for safe custody as inquiries continue.

Authorities say Luwaga will be prosecuted once all investigations are completed.