Uganda probes alleged $450,000 gold fraud targeting foreign investor

Ugandan authorities have launched investigations into an alleged US$450,000 gold fraud involving an Indian-British investor who claims he was deceived in a deal for 20 kilograms of gold.

The investigation 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 lured into Uganda’s gold export business after being promised a supply of 20 kilograms of gold.

The investor allegedly paid US$450,000 through a combination of bank transfers and cash, with receipts reportedly issued by the suspects. Investigators say part of the transaction was also processed through an entity presented as the suspects’ legal representative.

The complainant was allegedly invited several times to Uganda and neighbouring countries, including Kenya, under the pretext of finalising the transaction.

On one occasion, the investor reportedly travelled to Kenya after facilitating arrangements for a meeting but was allegedly abandoned by the suspects.

Investigators further allege that meetings were scheduled in Germany as part of efforts to delay the transaction while creating an impression of legitimacy and building the investor’s confidence.

The investor later signed contractual documents before allegedly receiving what was presented to him as 20 kilograms of gold.

However, subsequent verification reportedly established that the consignment did not correspond with the agreed transaction, prompting the investor to seek the intervention of Ugandan authorities.

Fake government documents under investigation

Authorities are also investigating allegations that forged documents bearing the letterhead of the Special Forces Command (SFC) were used to give the transaction an appearance of government knowledge or approval.

Investigators say that, if proven, the use of such documents could have implications beyond the alleged financial loss, potentially damaging the credibility of government institutions and undermining investor confidence in Uganda.

One suspect, Abdul Nasur Ikuns, is currently assisting investigators as they seek to establish the full circumstances surrounding the alleged fraud, identify other individuals who may have been involved and trace any proceeds linked to the suspected crime.

The case highlights the risks facing investors operating in Uganda’s lucrative but complex gold and minerals trade, where authorities have repeatedly emphasised the importance of due diligence and regulatory compliance.

SHIPU reiterated its commitment to protecting both local and foreign investors from fraudulent practices that could damage Uganda’s investment environment.

The unit urged investors interested in mineral and gold transactions to verify licences, company details and transaction documents with relevant government authorities before committing funds.

Investors were also advised to seek guidance from recognised regulatory agencies and conduct thorough due diligence on potential business partners.

Investigations remain ongoing, and authorities say further information will be released as the inquiry progresses.