Gold stock
HABARI DAILY I Kampala, Uganda I More than 20 companies dealing in gold and mineral trade are under investigation by the Police Minerals Protection Unit (PMPU), in what authorities describe as a widening crackdown on fraud and investor scams that have tainted Uganda’s lucrative gold sector.
As of 2025–2026, gold is Uganda’s largest export, with annual export earnings surging to approximately $6.4 billion. While export values are high, a significant portion arises from re-exporting, with reported net gains to the local economy being much lower, estimated around $200 million.
The investigations have exposed that many scammers operate through fake companies or by impersonating genuine ones, often staging operations in Airbnb apartments and residential areas in Kampala, Muyenga, and Buziga
Police spokesperson Kituuma Rusoke confirmed that a special probe was launched following a surge in complaints, largely from foreign investors who claim to have been defrauded by individuals and companies operating under the guise of legitimate gold कारोबार.
“The investigation commenced after we received complaints from several victims, most of them foreigners, alleging that they had been conned,” Rusoke said, adding that some cases have already been taken to court while inquiries into others are ongoing.
The probe, conducted jointly with the Ministry of Energy and Mineral Development, has seen a list of suspected companies submitted to the Department of Geological Survey and Mines (DGSM) for possible review and cancellation of licences.
Authorities say the companies are being scrutinised for their role in facilitating multibillion-shilling scams, often involving fake gold transactions, forged documentation and compromised verification systems.
Rusoke noted that even where criminal liability has not yet been established, companies risk losing their licences on “moral grounds” if they fail to maintain proper safeguards.
“If people can sneak fake gold onto your premises for testing, then your verification process is compromised. That raises serious questions about supervision and adherence to standard operating procedures,” he said.
List of Companies Under Scrutiny
Among the companies that have been named in connection with the investigations are:
- Duck Hunters Security Services Ltd
- Midasgko Mineral Trade Ltd
- Kerlibar Logistics
- Hey Transport Ltd
- Berkshire Traders Ltd
- Quantum Refineries and Analytical Laboratories
- Gemstone Refinery
- Progress Mining Logistics
- Blessed River Stone Ltd
- Cyclopes Defence Systems Ltd
Another group of companies currently under active investigation includes:
- Alakara Processing Plant SMC Ltd
- Alpha Refinery Limited
- Davinnet Gold Dealers Ltd
- Liverstrong Logistics
- Real Sunex Ltd
- Benal Group Uganda Limited
- Green Link Freight Logistics
- Nexcorp Ventures Company
- Nilton Smelting Ltd
- Washa Lidjiwe
- Nam Global Minerals Ltd
- Aimohen Company Ltd
Police emphasise that investigations are still ongoing and that inclusion on the list does not automatically imply guilt.
Firms Already Closed
In a related enforcement drive, authorities have already shut down several companies linked to illegal gold dealings. These include:
- Howks Guard Security
- B Safe Security Systems
- Duck Hunters Security Services
- Aurus Traders Limited
- Spanex Cargo Company Limited
- Kerlibar Logistics
- Hey Transport Limited
- Midasgko Mineral Trade Ltd
The closures follow a February joint report by PMPU and the energy ministry recommending action against firms suspected of operating outside regulatory frameworks. These eight companies add to 15 others that were shut down last year in a broader effort to clean up the sector.
High-Profile Arrests and Investor Losses
The crackdown gained momentum following the recent arrest of Muhammed Ali, the former managing director of Duck Hunters Security Services, over an alleged Shs 13 billion gold scam targeting Dubai-based investors.
The arrest was carried out by the State House Anti-Corruption Unit, with the suspect later transferred to the Defence Intelligence and Security (DIS) for further investigation.
Several individual cases illustrate the scale of the problem. An Indian investor, Thomas Vinal, reportedly lost $2 million (about Shs 7.4 billion) in a deal linked to Howks Guard Security. Another complainant alleged losing $140,000 through B Safe Security Systems, while Ajith Pahuja claimed he was defrauded of $73,250 in a transaction tied to Spanex Cargo Company.
Police have registered multiple case files, including two against Aurus Traders Limited, as investigations continue to unravel complex fraud networks.
Some of the companies named have strongly denied any wrongdoing. In a statement, officials from Midasgko Mineral Trade Ltd dismissed the allegations as “false, baseless and intended to mislead the public.”
“Our company has never participated in, authorised or condoned any illegal conduct,” the statement read, insisting that it had not received any funds under questionable circumstances.
Authorities, however, maintain that the investigations are necessary to restore credibility in a sector that has increasingly come under scrutiny.
Reforms and a Central Gold Market
According to Agnes Alaba, the ongoing investigations are part of broader reforms aimed at streamlining the gold trade and protecting investors.
The government is now pushing for the establishment of a central mineral market, where all gold transactions would be conducted under strict supervision.
“We expect all investors interested in buying or selling gold to operate from a centralised location. That will reduce the level of scamming, especially by unlicensed dealers,” Alaba said.
She added that many of the companies implicated in fraud cases are not properly registered, making it easier for them to exploit unsuspecting investors.
In addition to the proposed market, authorities have intensified inspections and monitoring operations, involving multiple agencies including the Uganda Police Force, Internal Security Organisation (ISO), Uganda Revenue Authority and the Uganda Civil Aviation Authority.
A Sector at a Crossroads
Uganda’s gold trade has grown rapidly in recent years, becoming a key contributor to export earnings. However, the rise in fraudulent activities threatens to undermine investor confidence and damage the country’s reputation as a reliable mineral trading hub.
Officials say the current crackdown is intended not only to punish offenders but also to send a strong signal that the government is committed to cleaning up the industry.
Police and the Ministry of Energy have advised investors to verify gold trading licenses with the Department of Mines, the Uganda Investment Authority, or the Police Minerals Enforcement Unit before making any payment
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