Ugandan authorities have arrested seven people accused of swindling a Nigerian legislator out of about $70,000 in a gold scam — a case officials say underscores persistent fraud in East Africa’s loosely regulated precious metals trade.
The State House Anti-Corruption Unit (SH-ACU) and the Criminal Investigations Directorate (CID) said the group lured Gbillah Mark Terseer — a two-term member of Nigeria’s National Assembly representing Gwer-East and Gwer-West in Benue State — into believing they could sell him seven kilograms of gold.
The transaction, according to investigators, took place in Muyenga, an upscale neighbourhood in Kampala, Uganda’s capital. But officials say the companies involved, Legacy Refinery Limited and Emerod Agency Limited, had no gold to sell.
Senior officer Bamwiine Muhorozi told reporters at a press conference in Kampala that the suspects “posed as gold sellers, clearing agents, company representatives, and a secretary” to pull off the scheme. Gbillah, he said, contacted the Unit soon after realising something was wrong.
“Working together, we set up a controlled meeting with the fraudsters, leading to their arrest before they could extort additional funds,” Bamwiine said.
Those taken into custody include four Congolese nationals — Paluku Kisasi, Safari Akonkwa, Isaac Mpende and Mabwongo Prince — and three Ugandans: Abdul Madjid Kahirima, Kajjubi Tevin Kyome and Tibasiima Barbra, also known as Katushabe Sharon.
A search of the group’s rented premises turned up roughly 150 kilograms of imitation gold bars and nuggets. Authorities believe these props were used to dupe other buyers, many of whom were first approached via email and then persuaded to travel to Uganda.
While the Anti-Corruption Unit has disrupted similar schemes before, Bamwiine described this case as notable because the suspects were caught mid-operation. He urged investors to verify sellers through official channels before committing funds.
“Verify with the relevant authorities and continue reporting suspicious activities to safeguard yourselves from scams,” he said in a statement posted Tuesday on the Unit’s account on X, the platform formerly known as Twitter.
Gold scams are not uncommon in the region. Industry estimates suggest that between early 2021 and March 2022, investors in Uganda and neighbouring Kenya lost about $25 million in similar frauds — in some cases as much as $8 million in a single deal. Experts say the combination of high global demand and patchy oversight in East Africa’s gold sector has created fertile ground for such crimes.
The suspects remain in custody and are expected to face formal charges in the coming days.
