KAMPALA, Uganda — More than 20 companies involved in Uganda’s gold trade are under investigation over alleged fraud, investor scams, and illegal mineral transactions, according to the Uganda Police Force.
Police spokesperson Kituuma Rusoke said the probe, led by the Police Minerals Protection Unit (PMPU), intensified following a surge in complaints—particularly from foreign investors—who reported losing large sums of money in suspicious gold deals.
He confirmed that some of the companies have already been charged in court, while others remain under active investigation.
Licenses under scrutiny
Authorities have also launched a review of mineral trading licenses for the implicated firms. The process is being coordinated with the Ministry of Energy and Mineral Development and the Directorate of Geological Survey and Mines, which could recommend suspensions or cancellations where violations are established.
Rusoke noted that the list of suspect companies emerged from a joint enforcement operation and warned that businesses failing to meet regulatory standards risk losing their licenses.
“If a company allows fraudulent dealings within its operations, it reflects a breakdown in compliance,” he said, adding that investigations are ongoing and no final determinations have been made.
Firms named in probe
Among the companies under review are Duc Hunters Security Services Ltd, Midasgko Mineral Trade Ltd, Keribar 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, Alpha Refinery Ltd, Davinnet Gold Dealers Ltd, Livstrong Logistics, Real Sunex Ltd, Benal Group Uganda Ltd, Green Link Freight Logistics, Nexcorp Ventures Company, Nilton Smelting Ltd, Nam Global Minerals Ltd, and Aimhon Company Ltd, among others.
Officials say additional companies could be added as inquiries progress.
Companies shut down
Police have already closed several businesses, including Hawks Guard Security, B Safe Security Systems, Kerlibar Logistics, Hey Transport Ltd, and Midasgko Mineral Trade Ltd, after preliminary findings linked them to fraudulent activities.
Arrests linked to scams
The crackdown has also led to arrests. In one case, an Indian national identified as Thomas Vinal is accused of defrauding a businessman of more than $2 million (about Shs7.4 billion) through operations linked to Hawks Guard Security.
Another suspect, Ajith Pahuja, is alleged to have obtained $73,250 (approximately Shs272.8 million) from a victim in a separate scheme. Police say these cases reflect a broader pattern of organized fraud targeting investors.
Sector-wide enforcement push
According to Rusoke, the investigations are part of a wider effort to restore order and transparency in Uganda’s gold trade, which has increasingly attracted both legitimate investors and criminal actors.
Authorities are also conducting public awareness campaigns urging investors to work only with licensed and verified dealers. Some of the companies under investigation were reportedly not registered in official systems, raising concerns about their legitimacy.
The ongoing enforcement drive follows earlier recommendations for tighter regulation and the closure of non-compliant firms. Multi-agency teams—including police, aviation authorities, and security agencies—have stepped up inspections and monitoring.
Mixed reactions from companies
Some of the companies named have denied the allegations. Representatives of Midasgko Mineral Trade Ltd described the claims as unfounded and damaging, insisting they operate within the law.
However, police maintain that investigations will proceed independently, and any wrongdoing will be dealt with through the courts.
Looking ahead
With Uganda positioning itself as a regional hub for gold refining and exports, authorities say safeguarding the sector’s integrity is essential for investor confidence and economic growth.
“We are determined to ensure that the mineral sector operates transparently and within the law,” Rusoke said. “Anyone found exploiting investors or undermining the system will face the full force of the law.”
Investigations are ongoing, with more enforcement actions expected in the coming weeks.