Uganda intensifies war on gold fraud with coordinated multi-agency offensive

A high-level assembly of senior government officials convened at the State House Investors Protection Unit (SHIPU) offices in Kampala on Wednesday, marking a critical follow-up in Uganda’s concerted effort to dismantle rampant gold trade fraud. This session builds on commitments made in January 2025, with a renewed push to redeem the nation’s economic image and safeguard investors from sophisticated fraudulent schemes.

Eng. Irene Batebe, Permanent Secretary of the Ministry of Energy and Mineral Development, underscored the severity of the challenge, noting that fraudsters predominantly target the gold sector, leaving a trail of victimized investors caught in fake deals. “We must really work together if we are to tackle this challenge,” Eng. Batebe urged, calling for an “ecosystem arrangement” of coordinated efforts among various government entities, including the Uganda Police Force.

The meeting highlighted the tangible steps being taken by the Ministry and its stakeholders to streamline the gold trade. Drawing lessons from Tanzania’s robust regulatory framework, Eng. Batebe revealed plans to establish designated points for gold sale and purchase, a stark contrast to Uganda’s current lack thereof.

“Unlike Tanzania, Uganda lacks designated points of sale and purchase of gold. We are working with the Attorney General to come up with a law to enable us to set up designated places for mineral markets and buying centres to overcome black markets and fraud,” she stated. Proposed centres include Entebbe and Busia as selling points, and Kassanda, Moroto, or Kotido as buying centres. Any trade outside these designated zones will be deemed criminal.

Further initiatives include the Bank of Uganda’s gold purchase program, expected to foster healthy competition and competitive pricing, thereby luring black market dealers into legitimate channels. A digital platform for tracking and automatic revenue management is also in the pipeline, alongside strengthened border patrols to curb smuggling. In an innovative move to combat digital scams, officials agreed to establish a dedicated cyber desk at the Uganda Police Force.

Brig. Gen. Henry Isoke, Head of the State House Anti-Corruption Unit (SHACU), emphasized the need for “game-changing regulations” and accelerated action. “We need to move faster, timeline is key, engage the Attorney General, Cabinet and have a law in place to regulate the sector,” he asserted, stressing the importance of strategic collaboration among government agencies.

Col. Edith Nakalema, Head of SHIPU, reiterated the unit’s mandate to protect investors from delays and fraudulent actors. She called for heightened vigilance across the entire gold fraud journey, urging attendees to appreciate the urgency of curbing this vice as a “national imperative.” Col. Nakalema outlined a multi-pronged approach focusing on the origin of fraud, managing risks along the payment processing value chain, empowering investors, and enforcing laws decisively. She commended the recent operation by SHACU that led to the arrest of seven suspects accused of swindling a Nigerian businessman out of USD 70,000 in a fake gold deal, signifying the impact of collaborative efforts.

AIGP Frank Mwesigwa, Uganda Police Director of Operations, representing the Inspector General of Police, described gold scams as a “big elephant in the house” that demands immediate attention. He revealed that 48 cases have been reported in the last four months alone, underscoring the scale of the problem. “We can only fight this scam when we are working together. With policy interventions in place, we will be able to overcome the issue,” he affirmed.

Brig. Gen. Mike Kisame, Head of Aviation Security at Entebbe International Airport, highlighted that fraud is often perpetuated by a chain of financially and politically well-connected individuals, stressing the need for collective efforts to dismantle these networks. He also cautioned against bureaucratic delays in decision-making, which can undermine rapid response.

Tangible results are already emerging from ongoing operations. Assistant Commissioner of Police, Julius Caesar Tusingwire, Commander of the Police Minerals Protection Unit, reported the closure of 15 illegal gold refineries in Muyenga, Buziga, and surrounding areas since January 2025. These operations have yielded significant recoveries, including fake gold, genuine gold, and other exhibits, with agreements to conduct such operations quarterly.

The meeting concluded with a consensus among officials to establish a search registry for mineral dealers and constitute a technical committee that will meet monthly to discuss key issues, underscoring a unified and sustained commitment to sanitizing Uganda’s critical minerals sector.