Seven Congolese and Ugandan Nationals Arrested for Defrauding Nigerian Businessman of $70,000 in Fake Gold Scam
The State House Anti-Corruption Unit (SH-ACU) of Uganda, in collaboration with the Criminal Investigations Directorate (CID) of the Uganda Police Force, has arrested seven individuals accused of defrauding a Nigerian businessman of seventy thousand United States dollars (USD 70,000) in a meticulously orchestrated fake gold transaction.
The arrests, announced in Kampala on Tuesday, August 12, 2025, involve a group comprised of four Congolese nationals and three Ugandans who allegedly posed as legitimate gold suppliers and agents of two companies — Legacy Refinery Limited and Emerod Agency Limited. Their victim, identified as Mr. Mark Gbillah, was allegedly convinced through a series of meetings and fraudulent documentation that the group could deliver seven kilograms of authentic gold.
However, subsequent investigations revealed that neither Legacy Refinery Limited nor Emerod Agency Limited had any genuine gold to supply, and both companies appear to have been used as fronts to facilitate the scam.
The suspects have been named as Paluku Kisasi, Safari Akonkwa, Isaac Mpende, Abdul Madjid Kahirima, Mabwongo Prince, Kajjubi Tevin Kyome, and Tibasiima Barbra, also known by the alias Katushabe Sharon.
According to Senior Officer Mr. Bamwiine Muhorozi of the SH-ACU, the investigation began after Mr. Gbillah reported the matter to the authorities.
“We worked closely with the complainant to arrange a controlled meeting with the suspects,” Mr. Muhorozi explained during a press briefing at the SH-ACU headquarters, located in the Parliamentary Building in Kampala. “This tactical engagement allowed us to apprehend them before they could solicit additional funds from the victim.”
The sting operation culminated in the arrests and the discovery of incriminating evidence. A search conducted at the suspects’ rented premises in the affluent Muyenga suburb of Kampala uncovered approximately 150 kilograms of counterfeit gold bars and imitation gold nuggets. These items, authorities say, were intended to deceive potential buyers during staged inspections.
The gold-like material, made of low-value metals coated to mimic real gold, is consistent with items previously seized in other regional gold fraud operations. In such schemes, scammers often invite prospective investors to witness what appears to be a legitimate gold shipment, using these fake items to build trust before demanding large advance payments.
The case comes against the backdrop of a surge in fraudulent gold deals targeting both local and foreign investors in East Africa. Uganda, in particular, has emerged as both a major transit point for gold exports and, unfortunately, a hub for sophisticated gold-related fraud.
Earlier in 2025, a Turkish investor was reportedly defrauded of approximately 550 million Ugandan shillings — the equivalent of about USD 150,000 — in a similar scam. In that case, the victim was convinced to pay in advance for several kilograms of gold, only to discover later that the promised consignment did not exist.
In mid-2024, another victim, also a foreign businessman, was swindled out of USD 105,000 in a bogus deal involving twenty kilograms of non-existent gold. These incidents, coupled with numerous unreported or under-reported cases, paint a troubling picture of the risks facing investors in Uganda’s informal gold trade.
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According to regional law enforcement data, between early 2021 and March 2022 alone, investors in Uganda and neighbouring Kenya collectively lost an estimated USD 25 million to such scams. In some instances, individual cases involved losses exceeding USD 8 million.
Fraudulent gold schemes in East Africa often follow a predictable pattern, though the execution is marked by careful planning and convincing theatrics:
- Initial Contact – Victims are typically approached through referrals, social networks, or targeted outreach. Fraudsters may present themselves as well-connected intermediaries, exporters, or agents of reputed refineries.
- Creation of Legitimacy – Scammers set up or co-opt legitimate-sounding companies, complete with forged business registration documents, official-looking letterheads, and even fake export permits from government agencies. In the present case, Legacy Refinery Limited and Emerod Agency Limited are alleged to have served this role.
- The “Show” – Victims are invited to view what appears to be gold. These are often tungsten or lead bars plated with gold, or painted metal dust compressed into nugget form.
- The Advance Payment – Once the buyer is convinced, the scammers demand a significant upfront payment, usually justified as covering export taxes, clearance fees, or insurance.
- Disappearance – After receiving payment, the fraudsters either vanish or create prolonged delays, blaming bureaucracy, customs issues, or sudden regulatory changes until the victim realises the fraud.
Uganda’s growing prominence in the global gold market has made it an attractive target for criminal exploitation. The country’s gold exports have risen sharply over the past decade, fuelled by both local mining and imports — much of it from the Democratic Republic of Congo (DRC), which has vast gold reserves.
However, the gold trade is also plagued by weak regulatory oversight, porous borders, and an informal sector that accounts for a significant share of transactions. This environment makes it easier for fraudulent actors to blend in with legitimate traders.
Additionally, the perception of Uganda as a gold-export hub draws in foreign investors, some of whom may lack the local knowledge needed to navigate the complex and often opaque market dynamics.
During Tuesday’s press conference, Mr. Muhorozi stressed that while Uganda remains a viable destination for legitimate gold trade, investors must exercise extreme caution.
“We strongly urge all investors — whether domestic or international — to verify the credentials of any gold dealer or refinery before engaging in transactions,” he said. “Verification can be done through the Ministry of Energy and Mineral Development, the Uganda Revenue Authority, or the Uganda Police Force.”
He also emphasised the importance of promptly reporting suspicious activities to law enforcement to enable timely intervention.
The seven suspects are expected to be arraigned before a Ugandan court in the coming days. Legal analysts say they are likely to face multiple charges under Uganda’s Penal Code Act and Anti-Money Laundering legislation, including:
- Obtaining money by false pretence
- Conspiracy to commit a felony
- Fraudulent representation of goods
- Money laundering
If convicted, the suspects could face lengthy prison terms, substantial fines, and forfeiture of assets linked to the crime. In addition, foreign nationals convicted of such offences may be subject to deportation after serving their sentences.
Given the cross-border nature of the scam — involving suspects from the Democratic Republic of Congo and Uganda, and a victim from Nigeria — the case has potential implications for international cooperation on fraud prevention. The East African Police Chiefs Cooperation Organisation (EAPCCO) and Interpol’s regional bureau in Nairobi may become involved, particularly if investigations uncover links to other cases in neighbouring countries.
Cross-border financial crimes are notoriously difficult to prosecute, as they often involve multiple jurisdictions with differing legal frameworks. However, successful prosecution in high-profile cases like this one can serve as a deterrent and reinforce investor confidence.
For victims such as Mr. Gbillah, the consequences of such scams are not purely financial. In addition to the monetary loss, victims often endure reputational damage, strained business relationships, and emotional distress. Some victims are reluctant to report incidents due to embarrassment or fear of being perceived as careless.
In this case, however, Mr. Gbillah’s prompt reporting to SH-ACU not only facilitated the arrest of the suspects but also prevented further financial losses. His cooperation is being cited by authorities as a model for how victims should respond to suspected fraud.
Gold-related fraud undermines trust in Uganda’s mining and export sectors, deterring legitimate investment and damaging the country’s reputation as a trade partner. Analysts warn that repeated incidents could lead to stricter regulations and compliance requirements for exporters, which, while necessary, may also increase operational costs for legitimate businesses.
Furthermore, such scams divert attention and resources from the formalisation of the gold sector, a process that is crucial for maximising revenue, improving labour conditions, and ensuring compliance with international trade standards.
The arrest of the seven Congolese and Ugandan nationals marks a significant win for Uganda’s anti-corruption and law enforcement agencies in their ongoing battle against gold-related fraud. While the suspects are yet to be tried, the case has already drawn public attention to the prevalence and sophistication of such scams in the region.
For investors, the incident is a cautionary tale that underscores the necessity of thorough verification, cautious engagement, and prompt reporting of suspicious activities. For law enforcement, it is a reminder of the importance of proactive operations and cross-border cooperation in tackling transnational financial crimes.
The coming weeks will determine whether the prosecution can secure convictions and whether further investigations will reveal additional members of the network behind this elaborate scam. Regardless of the outcome, the message from authorities is clear: gold scams will be met with firm and decisive action.