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Overview:

Police in Kampala have recovered Shs900m from 56 gold scammers in a seven-month operation, shutting down illegal refineries and online fraud rings.

KAMPALA, UGANDA — Ugandan police have seized 900 million shillings ($240,000) from 56 suspects in a major crackdown on a gold scam ring. The operation, which took place over seven months, targeted sophisticated criminal networks that were defrauding both local and foreign investors.

According to a report by the Police Mineral Protection Unit (PMPU), 50 cases of gold fraud were reported since January. The PMPU, led by Assistant Commissioner of Police Ceaser Tusingwire, conducted targeted operations that shut down numerous illegal refineries and scam operations in and around Kampala, including those run from offices and Airbnb rentals.

Tusingwire said the effort has resulted in arrests, prosecutions, and the recovery of valuable assets, including money and vehicles. The police also noted that organized crime networks are now increasingly involved in the smuggling and illegal mining of minerals.

The PMPU report revealed that 10 of the reported cases were cyber-related, where scammers used fake online trading websites to deceive investors. Investigators stated that this type of fraud is more complex and is often carried out by large-scale networks that use fake companies, unlicensed accountants, and foreign nationals.

An anonymous investigator said that victims are often complicit in illegal activities, such as money laundering, which makes them hesitant to report the crimes. Scammers typically help victims process what appear to be legal documents, including company registration and licenses from the Uganda Revenue Authority (URA) and the Ministry of Energy and Mineral Development, to make the deals seem legitimate.

In response, Col. Edith Nakalema, head of the State House Investors Protection Unit, advised the public to report all cases to the relevant authorities. She also urged investors to conduct due diligence through the State House Investors Protection Portal before entering into any transactions.

The Ministry of Energy and Mineral Development, through its inspector Edgar Ssebagala, affirmed that all individuals and companies involved in mineral trading must comply with existing mining laws. The ministry has the authority to revoke licenses from those who commit mineral-related offenses.