Gold fraud probe: Investor loses Shs 1.62 billion in 20kg deal

The Police Mineral Protection Unit, working with the State House Investors Protection Unit (SHIPU) and other security agencies, has launched investigations into an alleged gold fraud involving an Indian British investor who reportedly lost about Shs 1.62 billion in a dubious transaction.

Preliminary findings indicate that the investor was lured into a gold export venture after being promised a supply of 20 kilogrammes of gold. The deal, investigators say, was presented as legitimate and backed by documentation that appeared credible at the time.

According to SHIPU Senior Information Technology and Public Relations Officer Bryan Henry Vubya, the investor paid a total of US$450,000, equivalent to about Shs 1.62 billion, through a combination of bank transfers and cash payments. Receipts were allegedly issued by the suspects to confirm the transactions.

Part of the payment process was reportedly channelled through an entity introduced as the suspects’ legal representative. Authorities believe this arrangement was intended to reinforce the appearance of legality and build trust with the investor.

Investigators further revealed that the complainant was invited on several occasions to Uganda and neighbouring countries, including Kenya, under the pretext of concluding the transaction. However, some of these engagements reportedly failed to materialise as planned.

In one instance, the investor travelled to Kenya after facilitating a meeting, only to be allegedly abandoned by the suspects. Authorities say similar tactics may have been used to delay the deal while maintaining the investor’s confidence.

Additional meetings were reportedly scheduled in Germany, which investigators believe were part of a broader scheme to create a false sense of legitimacy and prolong the transaction process.

The investor later signed contractual documents and was presented with what was purported to be 20 kilogrammes of gold. However, subsequent verification reportedly revealed that the consignment did not match the agreed specifications, prompting the investor to seek government intervention.

Authorities are also examining claims that forged documents bearing the letterhead of the Special Forces Command were used to suggest that the transaction had official backing. Investigators warn that such actions, if confirmed, could undermine confidence in Uganda’s investment environment.

One suspect, Abdul Nasur Ikuns, is currently assisting investigators as inquiries continue. Security agencies are working to establish the full scope of the alleged fraud, identify other individuals involved and trace any proceeds linked to the scheme.

SHIPU has reiterated its commitment to safeguarding both local and foreign investors from fraudulent practices. The unit warned that such schemes not only cause financial losses but also damage the country’s reputation as a safe investment destination.

Authorities have urged investors dealing in mineral and gold transactions to exercise caution. They advise conducting thorough due diligence, verifying licences and documentation with relevant government agencies, and seeking guidance from recognised regulatory bodies before committing funds.

Investigations into the matter are ongoing, and officials say more updates will be provided as new information emerges.

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