A team of senior government officials has come together to pave ways of stemming fraud in the minerals sector.
During a follow-up meeting on gold trade fraud in Uganda held on Wednesday at the State House Investors Protection Unit (SHIPU) offices in Kampala, the Permanent Secretary, Ministry of Energy and Mineral Development, Eng. Irene Batebe, said fraudsters mainly deal in gold, and a number of investors have fallen victim to fake gold deals.
The first meeting was held in January 2025, where heads of government agencies agreed on the need to step up action to prevent fraud in order to redeem the image of the economy. Eng. Batebe called for more concerted efforts with various government entities such as Uganda Police to address the challenge.
“We must really work together if we are to tackle this challenge. Efforts must be coordinated in an ecosystem arrangement so that in the future we can consolidate on them,” she urged.
Eng. Batebe also highlighted steps being taken by the Ministry of Energy and Mineral Development and stakeholders to streamline the gold trade. She revealed that a case study had been conducted in Tanzania regarding regulation of business, with plans to benchmark Uganda in the near future.
“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 said.
“Like in Tanzania, you don’t just sell to anyone; gold is recorded and tracked, even if it is exiting the country.” Eng. Batebe further proposed designated centres for selling and buying gold across the country: Entebbe and Busia as selling centres, and Kassanda, Moroto, or Kotido as buying centres. She warned that anyone trading outside these designated places would be marked as a criminal.
“The Bank of Uganda gold purchase program will also bring in some good competition in gold trading by creating competitive prices. Black market dealers will join in once prices are competitive,” she added.
Eng. Batebe emphasized the need for close collaboration with security agencies to enforce regulations that will streamline gold trade. “We are also coming up with a digital platform to support tracking and revenue management. Revenue collection will be automatic.”
On the issue of smuggling, Eng. Batebe urged strengthening border patrols. “For digital scams, we must work together to deal with the issue,” she advised, as officials agreed to set up a cyber desk at the Uganda Police Force to monitor online mineral fraud.
Officials also agreed to create a search registry for mineral dealers and constitute a technical committee to meet monthly and discuss key issues.
The Head of the State House Anti-Corruption Unit, Brig. Gen. Henry Isoke, stressed the need for game-changing regulations to fix the overwhelming issue harming Uganda’s reputation. “We should strengthen strategic collaboration among government agencies if we are to achieve our goal,” Brig. Gen. Isoke noted.
Col. Edith Nakalema, Head of SHIPU, urged agencies to plug loopholes across the ecosystem. “Heightened vigilance along the gold fraud journey in each of our roles is required,” she said, adding that SHIPU’s role is to protect investors from delays and fraudulent actors.
Col. Nakalema emphasized focusing on the origin of fraud, managing risks along the payment processing chain, empowering investors, and decisive law enforcement. “In our first meeting in January, we spoke with one voice. We still have a common enemy and all agree on our role in preventing and thwarting fraud,” she said.
Col. Nakalema commended Brig. Gen. Isoke and his unit for arresting seven suspects accused of defrauding a Nigerian businessman out of USD 70,000 in a sophisticated fake gold deal.
Representing the Inspector General of Police, AIGP Frank Mwesigwa, Uganda Police Director of Operations described gold scams as a “big elephant in the house” that must be tackled urgently. “In 4 months, 48 cases have been reported. We can only fight this scam when working together. With policy interventions in place, we will overcome the issue.”
Brig. Gen. Mike Kisame, Head of Aviation Security at Entebbe International Airport, said fraud is often committed through well-connected individuals and called for collaboration among stakeholders. He also decried bureaucratic delays in decision-making, cautioning, “If you don’t act fast, things may take a different twist.”
The Police Minerals Protection Unit Commander, ACP Julius Caesar Tusingwire, revealed that since January 2025, 15 illegal gold refineries in Muyenga, Buziga, and neighboring areas have been closed. “We recovered exhibits like fake gold, gas cylinders, money, and genuine gold. That operation was successful, and we agreed to conduct such operations every quarter,” he said.
