Police have launched investigations into an alleged US$450,000 (about Shs1.6 billion) gold fraud in which an Indian-British investor claims he was duped in a purported 20-kilogram gold deal.
The probe is being conducted by the Police Mineral Protection Unit in collaboration with the State House Investors Protection Unit (SHIPU) and other security agencies.
According to SHIPU Senior Information Technology and Public Relations Officer Bryan Henry Vubya, preliminary investigations indicate that the investor was allegedly persuaded to enter the gold export business after being promised delivery of 20 kilograms of gold.
The complainant is said to have paid a total of US$450,000 through a combination of bank transfers and cash payments, for which receipts were allegedly issued by the suspects. Investigators say part of the transaction was processed through an entity presented as the suspects’ legal representative.
Authorities allege the investor was invited several times to Uganda and neighbouring countries, including Kenya, under the guise of concluding the transaction. On one occasion, the investor reportedly travelled to Kenya after facilitating the meeting, only to be abandoned by the suspects.
Investigators further say meetings were later arranged in Germany, which they believe were intended to delay the transaction while creating a false impression of credibility.
The investor eventually signed contractual documents and was handed what was presented as 20 kilograms of gold. However, subsequent verification reportedly revealed that the consignment did not match the agreed transaction, prompting the complainant to seek the intervention of Ugandan authorities.
Police are also investigating claims that forged documents bearing the letterhead of the Special Forces Command (SFC) were used to falsely suggest that the transaction had government backing.
Authorities warn that such schemes, if confirmed, not only expose investors to significant financial losses but also risk damaging the reputation of government institutions and undermining confidence in Uganda’s investment climate.
One suspect, Abdul Nasur Ikuns, is currently assisting investigators as they work to establish the full extent of the alleged fraud, identify any accomplices and trace proceeds linked to the suspected crime.
SHIPU reaffirmed its commitment to protecting both local and foreign investors from fraud and urged those engaging in mineral and gold transactions to carry out thorough due diligence, verify licences and documentation with the relevant authorities, and seek guidance from recognised regulatory agencies before committing funds.
Investigations are ongoing.