A 52-year-old Sudanese national, Abdul Aziz Yousif Mohammed Adam, has been remanded to Luzira Prison for allegedly defrauding a businessman of $650,000 (approximately 2.3 billion Ugandan shillings) in a gold scam.
Aziz was on Tuesday arraigned before senior principal magistrate grade one Jalia Basajabalaba and one count of obtaining money by false pretence read against
Prosecutions alleges that Aziz and others still at large between September and October 2024 within the areas of Kampala in Kampala district with intent to defraud, obtained $650,000 (about Shs 2.3 billion) from Osman Hassan by falsely pretending that they were selling to him gold whereas not.
It is also alleged that in September, Abdel Azim Hussien Mohamad Hosman, an investor, contacted his relative Osman, a resident of Dubai where he has a gold business, to buy 20 kilograms of gold from Uganda on his behalf and send it to Dubai.
Osman contacted Aziz, a gold broker who had 785kgs of pure gold ready for shipment in his possession and being kept with a company, Exxaro Minerals International Limited in Lubowa.
On September 26, 2024, Osman Hassan met Mohamed Awadalla Mohamed Osman in Ntinda at Hillside Plaza Hotel in Ntinda and he confirmed the existence of 785 kilograms of pure gold.
Osman then presented a safekeeping receipt dated March 2, 2023, from Exxaro Minerals International Limited indicating that he had deposited the said gold with them.
As a result, on September 27, 2024, the duo went to Exxaro Minerals International Limited where they met the manager a one Lyman, who also confirmed that they had kept the gold in their possession.
It is also alleged that Lyman told Osman that the gold needed to go for the smelting process and that each kg of the 785kgs of gold would cost $100 (about Shs 360,000).
Upon leaving the office, Osman reportedly paid $18,000 (appx. Shs 66 million) for accommodation at Slide Plaza Hotel for Awadalla as partial payment for the gold purchase.
He allegedly paid $5,000 (about Shs 18.5 million) in cash as a partial payment for the gold in the presence of Yousif and handed over $82,000 (appx. Shs 303 million) to Lyman for 785kgs of gold.
Six bags containing the purported gold were delivered to the office of Exxaro Minerals International Limited, accompanied by security personnel.
Upon inspection, the complainant believed the gold to be genuine. Lyman reportedly informed the complainant that the smelted gold would be stored at customs.
On September 30, Lyman informed Osman that they were arranging documents to export 20kgs of the purported gold and requested $144,000 (about Shs 533 million) to pay taxes and exporting fees.
Awadala Aziz and the company lawyer also received $48,000 (Shs 177 million) as brokerage fees.
It is further alleged that, on October 3, the complainant, accompanied by his son, met with Lyman at the VIP Lounge, Entebbe, at 9 pm.
Lyman showed them 20kgs of the purported gold, along with documents including a certificate of origin, export permission, ownership certificate, and commission documents, while seeking the balance of $44,000 (about Shs 162 million).
However, on September 8, 2024, Abdel failed to travel as Lyman had failed to provide the bill of lading.
Abdel eventually left for Dubai without the documents and has never received the gold to date.
When asked about the matter, Aziz denied the charges and in response, the state attorney, Shiphrah Nidoi told court that investigations in the matter are not yet complete and asked for an adjournment.
The trial magistrate remanded Aziz to Luzira until November, 28.