By BM
A multi-agency operation has uncovered a sprawling network of gold-related fraud in Uganda, exposing a criminal underworld that has been deceiving investors with fake minerals, bogus documents, and elaborate scams.
At least 56 suspects have been arrested and 50 cases officially registered since February 2025, in what officials are calling the biggest gold scam crackdown in Uganda’s recent history.
In February alone, 8 cases were recorded with 5 suspects arrested.
In March, 4 suspects were arrested in 6 cases; in April, 8 were arrested in 4 cases; and in May, 21 suspects were arrested in 13 cases.
In June, 7 were arrested in 6 cases. July saw 10 arrests and 10 cases, while August has so far recorded 1 person arrested with 4.863 grams of gold and 3 cases registered.
The operation, spearheaded by the Uganda Police Force’s Minerals Protection Unit (PMPU) and the Ministry of Energy and Mineral Development, has uncovered a sophisticated ring of con artists who use fake licenses, counterfeit gold samples, and high-pressure sales tactics to lure unsuspecting investors many of them foreign nationals.
“These are not your typical street criminals,” said ACP Julius Caesar Tusingwire, Commandant of the PMPU.
“They operate in well-furnished apartments, rent office spaces in upscale neighborhoods, create fake refineries, and even upload images from real mines in Congo to fabricate legitimacy.”
The scam empire operates by layering fake gold bars with mud, copper, zinc, and even ginger, then sealing them in boxes labeled as “untouchable consignment.”
Victims, often contacted online, are shown convincing documents, promised below-market prices (as low as $40,000 per kilo), and persuaded to transfer large sums of money without physically inspecting the goods.
With gold prices now soaring to $120,000 per kilogram, Uganda has seen a massive influx of international buyers creating fertile ground for scammers to thrive.
“Uganda is not a mineral paradise where you just show up and collect gold for free,” warned David Ssebaggala, Senior Inspector of Mines at the Ministry of Energy. “The people involved in this business, however uneducated they may appear are smart, informed, and know the international market.”
In January 2025, law enforcement began a targeted sweep of fraudulent operations in areas like Muyenga, Buziga, and Lugogo shutting down 15 illegal gold shops and refineries, and seizing testing machines, counterfeit safes, gas cylinders, and fake mineral samples.
The operation revealed that some fraudsters had even obtained valid-looking licenses, further misleading buyers.
Authorities now admit that simply issuing a license is no longer a safeguard against fraud.
“We are coming up with tougher regulations,” said Ssebaggala. “We plan to establish government-regulated mineral markets where only verified traders can operate under full oversight.”
As scammers shift tactics moving from formal offices to street deals and apartment-based “refineries” police are preparing a renewed wave of operations in the coming weeks.
A new cybercrime desk is also being launched to track online scammers and those impersonating legitimate traders through fake websites and documents.
“If you’re out there posing with fake licenses, just know we are watching. You will see us at your door,” ACP Tusingwire warned.
Authorities are urging both local and foreign investors to conduct thorough due diligence before engaging in any mineral transactions.
Officials emphasize that genuine mineral trade in Uganda must involve the Uganda Revenue Authority (URA), formal banking systems, and oversight from relevant government departments.
As the government tightens the noose on mineral fraud, officials hope this crackdown marks a turning point in efforts to clean up Uganda’s lucrative but increasingly vulnerable gold trade sector.
