Two Kazakhstani nationals, Baishev Rinad and Jambulov Olzhas, have accused Ugandan businessmen of defrauding them in a counterfeit gold transaction. The alleged scam has raised concerns about investor protection and the reputation of Uganda’s business environment.
THE ORDEAL BEGINS
According to the duo, they arrived in Uganda on March 20, 2023, at the invitation of a Ugandan man identified as Eric, who claimed to be a relative of the Ugandan president. Eric introduced them to Joseph Akandwanaho and Joram Kamukama, purported gold dealers operating under Sero Minerals Ltd, located at Plot 9 Golf Course road, Kampala. The Kazakhs were shown what appeared to be authentic export licenses and documentation.
To ensure the deal was legitimate, they hired a local lawyer, Raymond Ntende, to verify the documents and support the transaction. They allege paying the lawyer $14,000 (approximately Shs 51.3 million) for his services. Ntende reportedly confirmed the company’s legitimacy, but the investors now claim he conspired with the sellers to deceive them.
The investors agreed to purchase and export 25 kilograms of gold to a refinery in the UAE. Akandwanaho and Kamukama demanded $113,125 (Shs 415.1 million) in taxes and export fees, which the Kazakhs paid. They received three kilograms of gold as a deposit and a receipt acknowledging payment. However, days later, the sellers claimed that additional taxes of $40,000 (Shs 146.7 million) were required.
The investors transferred the funds, signing a new contract. After the second payment, the gold dealers allegedly began making excuses to delay the shipment. When the investors demanded a refund, they were met with threats of violence.
Fearing for their safety, they fled Uganda, only to later discover the gold deposit was fake—an alloy of zinc and copper. They also allege that employees at a testing facility, Eurogold, replaced the genuine gold with counterfeit bars.
CALLS FOR JUSTICE
Rinad and Olzhas have appealed to the Ugandan government for justice, demanding the return of their funds and the prosecution of the alleged scammers.
“These fraudsters are tarnishing the president’s name by claiming a connection to him, undermining the credibility of the government and Uganda as a whole,” they said.
Lawyer Raymond Ntende has denied involvement in the alleged scam. He stated that his role was limited to verifying the existence of the company and that the clients continued their dealings independently.
Ntende claims he repeatedly warned the investors of potential risks but insists they chose to proceed without his full involvement. He also disputes the amount paid to him, saying it was $5,000 (Shs 18.4 million), not $14,000. Ntende added that after the deal soured, the investors falsely accused him of advising them to leave Uganda for their safety.
He maintains they stopped sharing critical documents with him and acted without his knowledge in subsequent dealings. In an interview conducted on Monday, January 6, lawyer Raymond Ntende, stated that his role was solely to verify the existence of the company involved, which he confirmed was legitimate. However, he emphasized that his clients, Baishev Rinad and Jambulov Olzhas, proceeded independently with the gold sellers after his initial engagement.
“I have messages that clearly show they went to the Uganda Revenue Authority (URA) and other places without informing me. They also held several meetings without my knowledge,” Ntende explained.
According to Ntende, he was introduced to the Kazakh businessmen by another Kazakhstani national, Erken Maxermarks, on March 19, 2023. An agreement was made for the clients to remit funds, but Ntende asserts that only $5,000 (approximately Shs 18.4 million) was sent. He disputed the clients’ claim of having paid him $14,000 (approximately Shs 51.7 million), describing this assertion as false.
“I repeatedly warned them about the risks associated with such transactions and urged them to exercise caution. Despite my advice, they chose to proceed independently,” Ntende stated.
He further clarified that when the deal went awry, the clients alleged he advised them to “run for their lives” and insisted there was nothing he could do to help. Ntende denied these claims, asserting that the clients left Uganda on their own accord and only contacted him after the transaction had failed.
“I kept telling them they were not sharing documents with me and were making decisions without involving me,” Ntende added.
Ntende also reached out to Erken Maxermarks for further clarification. Maxermarks confirmed that he had neither seen nor spoken to the clients since their time in Uganda.
“I haven’t talked to them. I don’t even have their numbers anymore. These people are not truthful,” Maxermarks reportedly told Ntende in a WhatsApp conversation.
BUSINESSMAN DENIES INVOLVEMENT
When contacted, Joram Kamukama, one of the alleged gold sellers, denied any knowledge of the transaction.
“Let those who gave you the information provide the details,” Kamukama said.
Meanwhile, Colonel Edith Nakalema, head of the State House Investors Protection Unit, urged the complainants to formally report the case to the State House Anti-Corruption Unit. She emphasized the importance of conducting thorough due diligence through the State House Investors Protection Por- tal before engaging in transactions.
The documents exposing the alleged fraud were first shared by Dr Jimmy Spire Ssentongo last week on his X (formerly Twitter) account. Dr Ssentongo recounted an incident during his recent visit to the United States, where he met one of the nine recipients of the Anticorruption Champions Award—a lawyer from Kazakhstan.
Upon learning that Dr Ssentongo was Ugandan, the lawyer immediately shared how his brother, a legal gold dealer, had a distressing experience in Uganda.
Ssentongo, an anti-corruption advocate, highlighted the broader implications of the incident. He noted that such scams discourage foreign investors and tarnish Uganda’s image as a safe business destination.
“The price of corruption, impunity, and institutional failures is higher than we think. No business can thrive where trust and security are absent,” he said.
HOW GOLD CARTELS OPERATE
A new class of extraordinarily wealthy Ugandans has emerged in recent years, largely due to involvement in gold scams. To execute a scam, these cartels often enlist a lawyer to draft the necessary paperwork, as well as a high-ranking army or police officer, and a supposed gold seller.
“Sometimes they go a step further by involving an ‘illiterate’ gold dealer from the DR Congo, accompanied by an ‘interpreter’,” said a police source familiar with these dealings.
Prospective victims are primarily lured through recommendations from other dealers who have profited in the industry. These recommending individuals pose as successful dealers and may even initially sell genuine gold to the target.
“After closing the first deal, the target frequently opts to travel to Uganda to conduct business directly with the primary source,” the source said.
Surprisingly, some of these ‘investors’ manage to bring in thousands or even millions of dollars into the country through various entry points without much hassle.
“Upon the target’s arrival in Uganda, a senior army or police officer, who is part of the scam, arranges for a complimentary police escort to accompany the target wherever they wish to go. Those unknown individuals you see in tinted cars, being led by police patrols with sirens and breaking traffic laws—many are gold dealers. For the ‘General,’ renting a patrol vehicle for Shs 1 million a day is trivial when planning to defraud more than a billion shillings,” the source added.
EXECUTION
According to sources, the scam may take several months to execute. During this period, the cartel assists the target in processing essential documents, including company registration, obtaining a gold operating license from the Uganda Revenue Authority (URA), and securing clearance from the ministry of Energy and Mineral Development.
After the scam is executed, victims are often coerced into not involving the police.
“What usually happens is that while the victim is led to believe that everything about the deal was legal, they themselves are often complicit, typically involved in money laundering. Local cartels are aware of this, making it difficult for victims to report such cases,” the source added.
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