The Uganda Police Mineral Protection Unit is currently investigating a sophisticated $4.9 million (18.62 billion shillings) gold scam that has left foreign investors reeling.
The fraudulent scheme, allegedly orchestrated by Ugandan and Burundian gold dealers, has implicated a prominent city lawyer, Isaac Kyagaba, and OYZTAR MINERALS CO. LTD, a Ugandan-based company accused of defrauding Indonesian and Emirati investors.
High-Stakes Deception
According to a complaint filed at Mineral Police by representatives of PT HRTC Exploration and Production, a company registered in Indonesia and the United Arab Emirates (UAE), the scam revolved around a bogus gold transaction.
The investors had entered into a deal to purchase 200 kilograms of gold from OYZTAR MINERALS CO. LTD.
As per official records, the transaction commenced on May 8, 2024, when a pro-forma invoice (No. 1887) was issued. On May 13, PT HRTC deposited $3 million into an account held at Stanbic Bank Uganda.
Later, on May 28, another invoice (No. AR05/285) was issued for an additional $1.4 million, purportedly to cover export clearance fees.
The full payment of $4.4 million was made on May 29. However, despite fulfilling their financial obligations, the investors never received the promised gold.
Lawyer’s Role under Scrutiny
In a separate but related transaction, PT HRTC sought to acquire an additional 510 kilograms of gold from Burundi through intermediaries identified as Samuel and Hakim.
To ensure due diligence and secure the deal, the investors appointed city lawyer Isaac Kyagaba, a representative of the multinational law firm Dentons, to oversee the process.
However, suspicions arose when the investors transferred $500,000 through Kyagaba’s account, only for the deal to fall apart under mysterious circumstances. To justify the failed transaction, Kyagaba reportedly presented a Uganda Revenue Authority (URA) customs declaration copy (Ref: T 70287 07 23), which later turned out to be highly questionable.
Investor’s Plea for Justice
Faced with substantial financial losses and unfulfilled promises, PT HRTC’s representative, Fahad Kigongo Semugenze, formally reported the case to Ugandan authorities.
A complaint has been filed under SD REF: 32/25/02/2025 and SD REF: 31/24/02/2025. In the complaint, Kigongo not only accuses OYZTAR MINERALS CO. LTD and its directors of orchestrating the fraud but also calls for the immediate arrest of the company’s beneficiaries, along with individuals Samuel, Hakim, and lawyer Kyagaba.
Kigongo further revealed that attempts to recover the funds or receive the gold have been met with threats from the implicated parties.
Action
With the case now before the Criminal Court, legal proceedings have begun to recover the stolen funds and hold the fraudsters accountable.
The Uganda Police Force is under pressure to act swiftly, as similar scams have tarnished the country’s reputation in the international gold trade.
Efforts to reach Kyagaba for comment were unsuccessful at the time of publishing.
Meanwhile, investors and industry stakeholders are demanding that the Uganda Police expedite investigations and ensure that those responsible face the full extent of the law.
This latest scam highlights ongoing issues in Uganda’s gold sector, which has become a hotbed for fraudulent transactions.
With porous regulatory frameworks and a lack of stringent oversight, unscrupulous dealers continue to exploit both local and international investors.
