Ugandan authorities have arrested seven suspects — including four Congolese nationals — over an alleged $70,000 fake gold scam targeting a Nigerian businessman. The arrests were made after a carefully planned sting operation by Uganda’s State House Anti-Corruption Unit (SH-ACU) and the Criminal Investigations Directorate (CID).
The victim, identified as Mark Gbillah, was lured into what appeared to be a legitimate gold deal involving seven kilograms of gold. Instead, he was handed fake gold bars by individuals posing as agents of Legacy Refinery Limited and Emerod Agency Limited — both of which, investigators say, are not licensed or legitimate gold dealers.
The arrests took place on August 12 in Muyenga, an upscale suburb of Kampala, after Gbillah reported the scam to local authorities. SH-ACU coordinated with him to arrange a controlled meeting with the fraudsters.
“We worked with the complainant to set up the meeting and arrested the suspects before they could ask for more money,” said SH-ACU senior officer Bamwiine Muhorozi.
During the operation, police searched a rented property linked to the group and recovered about 150 kilograms of counterfeit gold bars and fake gold nuggets, which were likely meant to deceive more investors.
The seven suspects arrested in the operation include, Paluku Kisasi, Safari Akonkwa, Isaac Mpende, Abdul Madjid Kahirima, Mabwongo Prince, Kajjubi Tevin Kyome and Tibasiima Barbra, also known as Katushabe Sharon.
They are currently in custody and expected to face formal charges in court within the coming days.
This incident is the latest in a series of gold-related fraud cases targeting foreign investors in Uganda and the broader East African region.
In early 2025, a Turkish investor lost $150,000 in a similar scheme.
In mid-2024, another businessman was conned out of $105,000 in a fake deal involving 20 kilograms of non-existent gold.
According to regional security reports, from early 2021 to March 2022, investors in Uganda and Kenya lost over $25 million to fake gold scams, with some cases involving up to $8 million per victim.
Experts say these scams persist due to, Weak regulation in the informal gold trade, High demand for gold internationally and Lack of due diligence by many investors eager to strike fast deals.
“We’ve stopped many scams in recent years, but this case is significant because the arrests happened during the transaction,” said Bamwiine. “We urge all investors to verify gold dealers with authorities before making any payments.”
The Ugandan government says it hopes the arrests will send a clear warning to fraudsters exploiting the region’s gold trade. Officials are also working on tighter oversight and regulatory reforms to protect investors from future scams.
