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Museveni defends
`fake’ gold dealer
President snubs IGG, DPP, and
Financial Crimes Unit
By  Haggai  Matsiko
6XE6DKDUDQ$IULFD¶VVHFRQGELJJHVWJROGUH¿QHU\WKH8JDQGD
EDVHG$IULFDQ*ROG5H¿QHU\ $*5 GHDOVLQELJPRQH\±ZLWK
its  volumes  of  exports,  according  to  informed  sources,  valued  at  
over  Shs.  2  trillion  over  the  last  two  years.  So  it  is  not  surprising  
that  there  are  many  powerful  individuals  and  institutions  
pushing  to  get  a  bit  of  the  action.

L-‐R Alain Goetz,


President Museveni

10 Jan 05 -‐ 11, 2018


COVER  STORY

President Museveni at the launch of AGR in February 2017.

B
žȱ‘Žȱ›’œ”œȱ’—Ÿ˜•ŸŽǰȱ˜›ȱ‘Žȱ ˜Žĵȱ Šœȱ—Š–ŽȱŠœȱŠȱ”Ž¢ȱ™•Š¢Ž›ȱ’—ȱ‘Žȱ œ›ŽŠ–•’—Žȱ‘ŽȱŠŒ’Ÿ’’Žœȱ˜ȱ ȱŠ—ȱ
individuals,  government   gold  trade  in  2009  by  the  United  Nations   ˜Žĵȱ˜ȱŽ—œž›Žȱ‘Šȱ‘Ž¢ȱ˜ȱ—˜ȱ™˜œŽȱŠȱ
agencies,  and  the  country,   ›˜ž™ȱ˜ȱ¡™Ž›œȱŠ™™˜’—Žȱ˜ȱ’—ŸŽœ’ŠŽȱ ›ŽŠŽ›ȱ›’œ”ȱ˜ȱŠ—ŠȱŠœȱŠȱŒ˜ž—›¢ǯȱ™Š›ȱ
Š›ŽȱŽšžŠ••¢ȱ›ŽŠǯȱ ȱ˜Žœȱ—˜ȱ issues  in  Congo  and  in  2005,  the   ›˜–ȱ‘Žȱ’›ŽŒ˜›ŠŽȱ˜ȱ–’—Ž›Š•œǰȱ ˜Žĵȱ
‘Ž•™ȱ–ŠĴŽ›œȱ‘Šȱ‘Žȱ–Š—ȱŠȱ International  Court  of  Justice  in  The  Hague   Š—ȱ ȱŠ›Žȱ‹Ž’—ȱ’—ŸŽœ’ŠŽȱ‹¢ȱ‘Žȱ
the  centre  of  it  all;  Belgian   ruled  that  Uganda  should  pay  the  DRC   —œ™ŽŒ˜›ȱ Ž—Ž›Š•ȱ˜ȱ ˜ŸŽ›—–Ž—ȱǻ Ǽȱ
˜•ȱ–˜ž•ȱ•Š’—ȱ ˜Žĵǰȱ’œȱŠȱŒ˜—›˜ŸŽ›œ’Š•ȱ US$10  billion  in  reparations  for  plundering   over  alleged  malpractices;  the  Financial  
character  in  international  gold  trade  circles   ’œȱ˜•ȱŠ—ȱ˜‘Ž›ȱ—Šž›Š•ȱ›Žœ˜ž›ŒŽœǯȱ Intelligence  Authority  (FIA)  over  suspected  
and  is  under  investigation  by  a  United   President  Museveni’s  brother  Salim   money-­‐‑laundering,  and  the  government  
National  experts  on  DRC  and  South   Saleh  and  other  elites  in  Uganda  have   Department  of  Public  Prosecutions  (DPP)  
Sudan,  and  two  local  anti-­‐‑corruption   also  severally  been  implicated  by  UN   for  possible  prosecution  in  the  courts  of  
ŠŽ—Œ’Žœǯ investigators  for  illegal  exploitation  of   •Š ȱ˜ŸŽ›ȱ—˜—ȬŒ˜–™•’Š—ŒŽǯ
•Š’—ȱ ˜Žĵȱ’œȱŠ•œ˜ȱ’—Ÿ˜•ŸŽȱ’—ȱꐑœȱ ˜—˜•ŽœŽȱ—Šž›Š•ȱ›Žœ˜ž›ŒŽœǯ At  the  centre  of  these  investigations  are  
with  some  of  the  most  powerful  people  in   three  major  questions:  What  is  the  source  
Uganda’s  mineral  trade  circles;  including   Museveni accused ˜ȱ ˜ŽĵȂœȱ˜•ǵȱ
˜ ȱ–žŒ‘ȱ˜Žœȱ‘Žȱ
Banarbas  Taremwa,  who  is  an  in-­‐‑law  to   ȱ‘ŽȱŠ››Š¢ȱ˜ȱꐑœȱ’œȱ–’—Ȭœ™’——’—ǰȱ export?  Where  does  the  money  from  the  
›Žœ’Ž—ȱ˜ Ž›’ȱžœŽŸŽ—’Ȃœȱ‹›˜‘Ž›ǰȱ Ž—ǯȱ there  is  an  even  bigger  puzzle;  why  is   deals  go?
Š•Ž‹ȱ”Š— Š—Š‘˜ȱŠ”ŠȱŠ•’–ȱŠ•Ž‘ǰȱŠ—ȱ ›Žœ’Ž—ȱžœŽŸŽ—’ȱœ˜ȱꛖ•¢ȱŽŽ—’—ȱ Although  Museveni  has  held  
’Œ‘Š›ȱ Š’“ž”ŠDzȱŠ—ȱŠŸ’œ˜›ȱ˜ȱ›Žœ’Ž—ȱ ˜ŽĵǰȱŠȱŒ˜—›˜ŸŽ›œ’Š•ȱ˜•ȱ–Ž›Œ‘Š—ȱ œ˜–Žȱ–ŽŽ’—œȱ˜ȱŽ¡™•Š’—ȱ ȱŠ—ȱ
žœŽŸŽ—’ȱ˜—ȱ–’—Ž›Š•ȱŸŠ•žŽȱŠ’’˜—ǯȱ  ‘˜œŽȱŽŠ•’—ǰȱŽ¡™Ž›œȱœŠ¢ǰȱ›’œ”ȱ›Š’—ȱ ˜ŽĵȂœȱŽŠ•’—œDzȱ‘ŽȱšžŽœ’˜—œȱ›Ž–Š’—ȱ
Š›Ž– ŠȱŠ—ȱ Š’“ž”ŠȱŒ•Š’–ȱ ˜Žĵȱ’•Žȱ Š—Šȱ’—˜ȱ‘Žȱ–ž›”¢ȱŠ••Ž¢œȱ˜ȱ unanswered,  according  to  informed  
them  out  of  co-­‐‑ownership  of  the  gold   international  trade  in  illicit  or  blood  gold? œ˜ž›ŒŽœǯ
Œ˜–™Š—¢ȱ ‘’Œ‘ȱ‘Ž¢ȱœŽȱž™ȱ˜Ž‘Ž›ǯȱ As  recently  as  December  2017,  Museveni   The  Independent  understands  that  
Š›Ž– Šȱ’œȱœž’—ȱ ˜Žĵȱ’—ȱ‘ŽȱŒ˜ž›œȱŠ—ȱ ’›ŽŒŽȱ‘Žȱ’›ŽŒ˜›ŠŽȱ˜ȱ Ž˜•˜’ŒŠ•ȱ President  Museveni,  called  a  meeting  with  
Š’“ž”Šǰȱ ‘˜–ȱ ˜ŽĵǰȱœŠŒ”Žȱ›ŽŒŽ—•¢ȱ’—ȱŠȱ ž›ŸŽ¢ȱŠ—ȱ’—Žœȱǻ Ǽȱ˜ȱ’ŸŽȱ ȱ ”Ž¢ȱ™›’ŸŠŽȱ™•Š¢Ž›œȱ›˜–ȱ‘Žȱ‘Š–‹Ž›ȱ
very  public  manner,  is  threatening  to  spill   Š••ȱ‘Žȱ•’ŒŽ—œŽœȱ’ȱ›Žšž’›Žœǯȱ™™Š›Ž—•¢ǰȱ of  Mines  and  Petroleum  to  discuss  
Œ˜–™Š—¢ȱœŽŒ›Žœǯ  ȱ‘ŠȱŒ˜–™•Š’—Žȱ˜ȱ‘Žȱ›Žœ’Ž—ȱ‘Šȱ ’œœžŽœȱœž››˜ž—’—ȱ ǯȱ‘Žȱ‘Š–‹Ž›ȱ
˜Žĵǰȱ ‘˜ȱ—˜ ȱ˜ —œȱ ȱŗŖŖȱ™Ž›ŒŽ—ǰȱ  ȱ Šœȱ›žœ›Š’—ȱ‘Ž–ǯȱ lobbies  for  investors  in  the  mining  and  
and  Uganda  have  previously  been   Museveni’s  directive  is  being  seen  as   ™Ž›˜•Žž–ȱœŽŒ˜›œǯȱŠ›•¢ȱ‘ŽȱœŠ–Žȱ–˜—‘ǰȱ
ꗐŽ›Žȱ‹¢ȱȱ’—ŸŽœ’Š˜›œȱ˜›ȱŽŠ•’—ȱ’—ȱ a  snub  in  the  face  of  several  government   Museveni  had  met  with  sector  investors  
˜—˜ȱŒ˜—Ě’Œȱ–’—Ž›Š•œǯ agencies  which  claim  to  be  trying  to   ŠȱŠŽȱ
˜žœŽȱ—Ž‹‹ŽȱŠ—ȱ ˜Žĵȱ‘Šȱ

Jan 05 -‐ 11, 2018 11


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Œ˜–™•Š’—Žȱ‘Šȱ ȱ Šœȱ›žœ›Š’—ȱ ’ȱ˜—•¢ȱ›Žę—Žœȱ‘Žȱ›Š ȱ–ŠŽ›’Š•ȱ’—˜ȱŠȱ
‘Žȱ˜•ȱ›Žę—’—ȱ˜™Ž›Š’˜—ǯȱ‘Šȱ’œȱ ‘Ž—ȱ ꗒœ‘Žȱ™›˜žŒǯ
žœŽŸŽ—’ȱ’›ŽŒŽȱ ȱ˜ȱ’ŸŽȱ ȱŠ••ȱ Uganda’s  mining  law  established  
‘Žȱ•’ŒŽ—œŽœȱ’ȱ›Žšž’›Žœǯȱ ’—ȱŘŖŖřȱ˜Žœȱ—˜ȱ™›˜Ÿ’Žȱ˜›ȱŠȱ›Žę—’—ȱ
žǰȱŽ’‘Ž›ȱ”—˜ —ȱ˜›ȱž—”—˜ —ȱ˜ȱ •’ŒŽ—œŽǯȱŠœ’—ȱ˜—ȱ‘’œǰȱ ȱŠ›žŽœȱ‘Šȱ
Museveni,  the  source  of  contention   it  is  not  obliged  to  disclose  its  dealings  
‹Ž ŽŽ—ȱ‘Žȱ˜•ȱ›Žę—Ž›ȬŒž–ȬŽ¡™˜›Ž›ȱ ž—Ž›ȱ‘ŽȱŽ¡’œ’—ȱ•Š œǯ
Š—ȱ ȱœŽ–œȱ›˜–ȱ ˜ŽĵȂœȱœ•’™™Ž›¢ȱ žȱ˜ŸŽ›—–Ž—ȱ˜ĜŒ’Š•œȱ’—œ’œȱ‘Šȱ
ŠĴŽ–™ȱ˜ȱŽŸŠŽȱœž™Ž›Ÿ’œ’˜—ȱ‹¢ȱŠ••ȱ  ȱ‘ŠœȱŠȱ–’—Ž›Š•ȱŽŠ•Ž›œȂȱ•’ŒŽ—œŽǰȱ
˜ŸŽ›—–Ž—ȱ’—œ’ž’˜—œȱȮȱŠ—ȱ‘Ž’›ȱ which  it  received  on  January  2016  from  
ŠĴŽ–™œȱ˜ȱ‹ŽŠȱ‘Žȱ’—ŸŽœ˜›ȱ’—˜ȱ•’—Žǯ  ǯ
žœŽŸŽ—’ȱ‘Šœȱ‹ŽŽ—ȱ”ŽŽ—ȱ˜ȱ™›˜ŽŒȱ ˜Žĵȱ ‘Žȱ ȱ˜––’œœ’˜—Ž›ǰȱ Š›œȱ
›˜–ȱ ‘Ž—ȱ‘Žȱ•Šž—Œ‘Žȱ‘Žȱ ȱŠŒ’•’¢ȱ Š˜ǰȱ’—ȱŠȱ•ŽĴŽ›ȱŠŽȱ Š—žŠ›¢ȱŘŖŗŝȱ˜ȱ‘Žȱ
’—ȱŽ‹›žŠ›¢ȱŘŖŗŝǯȱȱ‘Žȱ’–Žǰȱ‘Žȱ Š›—Žȱ •˜‹Š•ȱ›Š—œ™Š›Ž—Œ¢ȱ‹˜¢ǰȱ •˜‹Š•ȱ’—Žœœȱ
‘Šȱ˜ĜŒ’Š•œȱ ‘˜ȱ ˜ž•ȱ—˜ȱœž™™˜›ȱ‘Žȱ ǻ Ǽȱ—˜Žȱ‘Šȱ‘Šȱ‘Žȱ ȱȃ‘Šœȱ—˜ȱ
Œ˜–™Š—¢ȱ ˜ž•ȱ‹ŽȱŽŠ•ȱ ’‘ȱȁ‘Š›œ‘•¢Ȃǯȱ ’œœžŽȱŠ—¢ȱŽ¡™˜›ȱ™Ž›–’œȄȱ˜ȱ ǯȱȱ¢ȱ
žœŽŸŽ—’ȱ’—Ž—Žȱ˜ȱ™›˜ŽŒȱ ǰȱ ’–™•’ŒŠ’˜—ǰȱ˜•ȱŽ¡™˜›œȱ‹¢ȱ ȱ ˜ž•ȱ
 ‘’Œ‘ȱ’œȱ‘Žȱꛜȱ›Žę—Ž›¢ȱ’—ȱŠœȱ›’ŒŠȱŠ—ȱ Sydney Asubo œŽŽ–ȱ’••ŽŠ•ǯ
the  second  largest  in  sub-­‐‑Saharan  Africa,   ȱŠ•œ˜ȱšž˜ŽȱŠ›Ž– ŠǰȱŠȱ˜›–Ž›ȱ
insiders  say,  because  he  hoped  the  facility    ȱ’›ŽŒ˜›ȱœŠ¢’—ȱ‘Šȱœ˜–Žȱ˜ȱ‘Žȱ
would  increase  the  legitimacy  of  the  gold   ˜•ȱ™›˜ŒŽœœŽȱ’—ȱ‘Žȱ›Žę—Ž›¢ȱŒ˜–Žœȱ
›ŠŽȱ’—ȱŠ—Šǯȱ from  the  neighboring  DRC  and  South  
žȱŠŒŒžœŠ’˜—œȱŠŠ’—œȱ ˜ŽĵȱœžŽœȱ Sudan,  which  critics  have  jumped  on  to  
‘Šȱ‘Žȱ›ŽŸŽ›œŽȱŒ˜ž•ȱ‹Žȱ‘Š™™Ž—’—ǯȱ Œ•Š’–ȱ‘Ž›Žȱ’œȱŠȱ›’œ”ȱ˜ȱžœ’—ȱ‘Žȱ–˜—Ž¢ȱ
˜›ȱ’—œŠ—ŒŽǰȱ’—ȱŠ—ȱ˜—Ȭ˜’—ȱꐑǰȱ ȱ ›˜–ȱ‘Žȱ˜•ȱœŠ•Žœȱ˜ȱž—ȱŒ˜—Ě’ŒœȱŠ—ȱ
has  allegedly  snubbed  directives  by  the   ˜–Ž—ȱ‘ž–Š—ȱ›’‘œȱŸ’˜•Š’˜—œǯ
FIA  intended  to  prevent  money  laundering   ’Œ‘Š›ȱ Š’“ž”ŠǰȱŠȱ˜ž—’—ȱ‹˜Š›ȱ
Š—ȱ™›˜–˜Žȱ›Š—œ™Š›Ž—Œ¢ǯ Œ‘Š’›–Š—ǰȱ ‘˜ȱ‘ŽȱŒ˜–™Š—¢ȱꛎȱ‘’œȱ
Uganda’s  Anti-­‐‑Money  Laundering   November,  told  The  Independent  that  he  
Act  conditions  dealers  in  precious  metals   has  been  raising  these  issues  and  suspects  
and  gems  to  register  with  the  FIA  as   ˜Žĵȱ™˜œœ’‹•¢ȱꛎȱ‘’–ȱ˜ȱ”ŽŽ™ȱ‘Žȱ
ŠŒŒ˜ž—Š‹•Žȱ™Ž›œ˜—œǯȱ •’ȱ˜—ǰȱŠ–˜—ȱ˜‘Ž›œǯȱ Š’“ž”Šȱ‘ŠœȱŠ•œ˜ȱ
In  accordance  with  this  law,  on  24   Ž¡™›ŽœœŽȱŒ˜—ŒŽ›—œȱ˜ŸŽ›ȱȃ˜•ȱœ˜ž›Œ’—ȱ
žžœȱ ȱ ›˜Žȱ˜ȱ ȱ’›ŽŒ’—ȱ in  the  region”  which  experts  say  should  
the  company  to  provide  a  copy  of  their   —˜ȱ‹Žȱœ Ž™ȱž—Ž›ȱ‘ŽȱŒŠ›™Žǯ
operating  licence  and  to  register  with  them   ĜŒ’Š•ȱŠŠȱœ‘˜ œȱ‘Šȱ˜—ȱœ˜–Žȱ
ŠœȱŠ—ȱŠŒŒ˜ž—Š‹•Žȱ™Ž›œ˜—ǯȱ ˜ŒŒŠœ’˜—œǰȱ ˜Žĵȱ‘ŠœȱœŽŸŽ›Š••¢ȱŽ¡™˜›Žȱ
‘Ž—ȱ ȱ’ȱ—˜ȱ›Žœ™˜—ǰȱ ȱ ›˜Žȱ Irene Mulyagonja ˜ŸŽ›ȱŗŖŖȱ œȱ˜—ȱŠȱœ’—•ŽȱŠ¢ǯȱŠ—ŠȂœȱ
ŠŠ’—ȱ–Š”’—ȱ‘ŽȱœŠ–ŽȱŽ–Š—œȱ˜—ȱŽ™ǯȱ gold  mines,  critics  say,  cannot  raise  10  
Řśǯȱ ȱ’—˜›Žȱ‘’œȱ›ŽšžŽœȱ˜˜ǯ ”’•˜œȱŠȱ ŽŽ”ǯȱ
‘Ž—ȱ ȱŽ•Š¢Žȱ˜ȱ›Žœ™˜—ǰȱ ȱ According  to  the  International  Monetary   ˜ȱŽȱ˜ȱ‘Žȱ‹˜Ĵ˜–ȱ˜ȱ‘Žȱ™ž££•Žǰȱ
boss  Sydney  Asubo  wrote  to  the  DPP  on   fund  (IMF),  trade  in  precious  metals,   The  Independent  secured  data  from  the  
Œǯŗŗȱ›ŽšžŽœ’—ȱ˜›ȱ‘Žȱ™›˜œŽŒž’˜—ȱ˜ȱ Š—ȱ™Š›’Œž•Š›•¢ȱ˜•ǰȱ‘Šœȱœ›˜—ȱ•’—”œȱ Uganda  Revenue  Authority  (URA)  and  
 ȱ˜›ȱ̘ž’—ȱ‘Žȱ•Š ǯȱ ˜ȱ’••’Œ’ȱꗊ—Œ’Š•ȱ̘ œǯȱȱœž¢ȱ˜—ȱ  ǯ
 ȱ’œœžŽȱ‘ŽœŽȱ•ŽĴŽ›œȱ˜ȱŽ—œž›Žȱ‘Žȱ gold  trading  and  export  in  Kampala  by   URA  data  shows  that  between  October  
company  complied  with  international  anti-­‐‑ ›Ž˜›¢ȱ‘Ž–‹žȬŠ•Ž›ǰȱ‘ž£ž–˜¢Šȱ ŘŖŗśȱŠ—ȱŽ™Ž–‹Ž›ȱŘŖŗŝǰȱ ȱ‘Šȱ
–˜—Ž¢ȱ•Šž—Ž›’—ȱ•Š œǯȱ˜—ȬŒ˜–™•’Š—ŒŽǰȱ Consulting,  revealed  that  gold  dealers  in   ›ŠŽȱ’—ȱ˜•ȱ ˜›‘ȱ‘œǯȱŗǯŗŜȱ›’••’˜—ǯȱȱ
in  2014,  landed  Uganda  on  the  Financial   the  DRC  and  Dubai  have  often  claimed   ŠŠȱ›˜–ȱ ǰȱ˜—ȱ‘Žȱ˜‘Ž›ȱ‘Š—ǰȱ
Œ’˜—ȱŠœ”ȱ˜›ŒŽȱǻǼȱ ŠŒ‘ȱ•’œȱ˜ȱ that  Kampala-­‐‑based  traders  purchase   shows  that  between  July  2016  and  June  
›’œ”¢ȱŒ˜ž—›’Žœǯ gold  with  illicit  funds  for  the  purpose  of   ŘŖŗŝǰȱ ȱ‘ŠȱŽ¡™˜›Žȱ˜•ȱ ˜›‘ȱ‘œȱ
–˜—Ž¢ȱ•Šž—Ž›’—ǯ Řǯŗřȱ›’••’˜—ǯȱ
Danger to Uganda Insiders  say  FIA  has  evidence,  which   Šœȱ¢ŽŠ›ȱ‘Žȱž’˜›ȱ Ž—Ž›Š•ȱǻ Ǽȱ
FATF  is  an  inter-­‐‑governmental  body   raises  concerns  over  money  laundering   ›Š’œŽȱŒ˜—ŒŽ›—œȱŠ‹˜žȱŒ˜—Ě’Œ’—ȱꐞ›Žœȱ
established  to  set  standards  and  promote   Š—ȱ’••’Œ’ȱꗊ—Œ’—ǯ ’œœžŽȱ‹¢ȱ‘Žȱ ȱŠ—ȱǯȱ‘’•Žȱ
ŽěŽŒ’ŸŽȱ’–™•Ž–Ž—Š’˜—ȱ˜ȱ•ŽŠ•ǰȱ ‘Ž—ȱ ȱ›Žœ™˜—Žȱ˜ȱ ȱšžŽ›’Žœȱ  ȱŠœœŽœœŽȱ›˜¢Š•¢ȱŠ—ȱŠ Š›Žȱ
regulatory  and  operational  measures  for   on  November  7,  2017,  the  company   Ž¡™˜›ȱ™Ž›–’œȱ˜›ȱ˜—•¢ȱşř”œȱ˜ȱ˜•ȱ
combating  money  laundering,  terrorist   declined  to  furnish  FIA  with  the  required    ˜›‘ȱ‘œŗŗǯŞ‹ǰȱ’—ȱ‘ŽȱœŠ–Žȱ™Ž›’˜ǰȱ
ꗊ—Œ’—ȱŠ—ȱ˜‘Ž›ȱ›Ž•ŠŽȱ‘›ŽŠœȱ˜ȱ‘Žȱ ŽŠ’•œǯȱ the  Customs  and  Excise  Department  of  
’—Ž›’¢ȱ˜ȱ‘Žȱ’—Ž›—Š’˜—Š•ȱꗊ—Œ’Š•ȱ —œŽŠǰȱ ȱ—˜Žȱ‘ŠȱŠ—ŠȂœȱŠ—’Ȭ Uganda  Revenue  Authority  indicated  
œ¢œŽ–ǯȱ˜ȱ‹Žȱ˜—ȱ‘ŽȱȂœȱ•’œȱ˜ȱ›’œ”¢ȱ money  laundering  law  does  not  oblige   ‘ŠȱśǰřŗŜȱ”œȱ˜ȱ˜•ȱ‘Šȱ‹ŽŽ—ȱŽ¡™˜›Žȱ
Œ˜ž—›’Žœȱ–Š”ŽœȱŠȱŒ˜ž—›¢ȱž—ŠĴ›ŠŒ’ŸŽȱ˜ȱ them  to  comply  with  its  requirements    ’‘ȱŠȱ˜Š•ȱŸŠ•žŽȱ˜ȱ‘œŜşŞȱ‹’••’˜—ǯȱ›’’Œœȱ
’—Ž›—Š’˜—Š•ȱ’—ŸŽœ˜›œȱŠ—ȱ•Ž—Ž›œǯȱ and  that  FIA  has  no  jurisdiction  to  compel   say  this  discrepancy  could  be  because  of  
The  FATF  only  removed  Uganda  from   ‘Ž–ȱ˜ȱŒ˜–™•¢ȱ ’‘ȱ’œȱ’›ŽŒ’ŸŽœǯ ž—Ž›ȱ›Ž™˜›’—ǯȱ
the  list  in  November  last  year  but  cases    ȱ—˜Žȱ’—ȱ’œȱ›Žœ™˜—œŽȱ˜ȱ ȱ ‘Žȱ ȱŠ•œ˜ȱ›Š’œŽȱŒ˜—ŒŽ›—œȱ‘Šȱ ‘’•Žȱ
•’”Žȱ ȂœȱŠ••ŽŽȱŒ›’–ŽœȱŒ˜ž•ȱ›ŽŸŽ›œŽȱ queries  that  the  law  being  cited  only   gold  grew  into  Uganda’s  second  largest  
‘’œȱŠ’—ǯȱ ȱ’œȱ™˜œœ’‹•¢ȱ ‘¢ȱœž‹˜ȱŠ—ȱ obliges  mineral  dealers  and  that  it  would   Ž¡™˜›ȱ™›˜žŒȱŠŽ›ȱŒ˜ěŽŽȱ’—ȱŘŖŗśȦŗŜǰȱ‘Žȱ
˜‘Ž›ȱ˜ŸŽ›—–Ž—ȱŠŽ—Œ’ŽœȱŠ›ŽȱŒ›ŠŒ”’—ȱ ‹ŽȱŽ››˜—Ž˜žœȱ˜ȱŠœœž–Žȱ‘Šȱ’ȱǻ Ǽȱ ›˜¢Š•’Žœȱ™Š’ȱ˜ȱ˜ŸŽ›—–Ž—ȱ’—Ȃȱ›ŽĚŽŒȱ
‘Žȱ ‘’™ǯ Ꝝȱ‘ŽȱŽœŒ›’™’˜—ȱ˜ȱŠȱŽŠ•Ž›ȱ’ŸŽ—ȱ‘Šȱ ‘Šȱ›˜ ‘ǯȱ

12 Jan 05 -‐ 11, 2018


COVER  STORY
During  that  year,  the  country  exported  
śǰȱŗřŗŜȱ”œȱ˜ȱ˜•ȱŸŠ•žŽȱŠȱŠ‹˜žȱ‘œŝŖŖȱ
‹’••’˜—ǰȱ‘Žȱ‹ž•”ȱ˜ȱ ‘’Œ‘ȱ Šœȱ‹¢ȱ ǯȱžȱ
˜›ȱ‘ŽȱœŠ–Žȱ¢ŽŠ›ǰȱ‘Žȱ ȱ—˜Žǰȱ˜—•¢ȱ
‘œřŜŖ–ȱ ŠœȱŒ˜••ŽŒŽȱ’—œŽŠȱ˜ȱ‘œŚŗǯŞŞȱ
billion  going  by  the  applicable  rates  of  1  
per  cent  and  5  per  cent  for  the  imported  or  
locally  mined  gold  respectively  according  
to  Mining  Act  2003.  
 Š¢ȱ›˜–ȱ‘’œȱŠ›ŽȱŒ•Š’–œȱ ˜Žĵȱ
is  concealing  his  operations  by  using  
–ž•’™•ŽȱŒ˜–™Š—’Žœǯȱ
ȱŠŠȱœ‘˜ œȱ‘Šȱ ‘’•Žȱ ȱ Šœȱ
the  exporter  in  all  cases,  the  gold  came  
into  Uganda  through  several  names  
’—Œ•ž’—ȱ ˜Žĵȱ‘’–œŽ•ǰȱŠȱ˜—Žȱ Š–Š•ȱ
Šœ’›ǰȱŠȱŒ˜–™Š—¢ȱŒŠ••Žȱ ȱȱ
Š—ȱŠ—˜‘Ž›ȱŒŠ••Žȱ ȱ ȱǯȱ
˜‘ȱ ȱŠ—ȱ ȱ ȱ‘ŠŸŽȱ
•’—”œȱ ’‘ȱ ˜Žĵǯ Don Binyina Richard Kaijuka
˜ž›ŒŽœȱœŠ¢ȱ‘Žȱ ȱŠ—ȱ ȱ
investigations,  which  are  on-­‐‑going,   ˜—Ž›Ž—ŒŽȱ˜ȱ‘Žȱ ›ŽŠȱŠ”ŽœȱŽ’˜—ȱ Years  later,  it  emerged  that  the  same  
 Ž›Žȱ™Š›•¢ȱœ™Š›”Žȱ‹¢ȱœ˜–Žȱ˜ȱ‘ŽœŽȱ ›˜˜Œ˜•ȱǻ  ǼȱŠŠ’—œȱ‘Žȱ ••ŽŠ•ȱ company  that  was  supposed  to  invest  
’œŒ›Ž™Š—Œ’Žœǯ Exploitation  of  Natural  Resources,  added   $175m  into  the  facility,  create  over  3000  
When  The  Independent  raised  these   ‘Šȱ‘Žȱ  ȱ‘Šœȱ•˜—ȱ‘ŠȱŒ˜—ŒŽ›—œȱ jobs  and  pay  government  millions  in  taxes  
’œœžŽœȱ ’‘ȱ ǰȱ‘ŽȱŒ˜–™Š—¢ȱœŠ’ȱ’—ȱ ˜ŸŽ›ȱ‘Žȱœ˜ž›ŒŽȱ˜ȱ‘Žȱ˜•ȱ›Žę—ŽȱŠȱ Š—ȱ›˜¢Š•’Žœǰȱ Šœȱ’—ŒŠ™Š‹•Žǯ
an  email  response  that  there  is  someone    ǯ But  because  they  bribed  their  way  to  
behind  the  allegations  whose  intention   Binyina  said  that  because  ACEMP   the  deal,  proper  due  diligence  was  not  
’œȱ˜ȱŠ–ŠŽȱ Ȃœȱ›Ž™žŠ’˜—ǯȱ‘Žȱ founded  and  convenes  the  National   done,  it  later  emerged  that  they  don’t  have  
company  had  earlier,  in  a  press  statement,   Assembly  of  Artisanal  and  Small  Scale   capacity,  they  are  unable  to  pay  even  $1  
Œ•Š’–Žȱ‘Šȱ™Ž›œ˜—ȱ ŠœȱŠ›Ž– Šǯ Miners  (ASMs),  which  brings  all  ASMs   million  a  year  in  government  loyalties  and  
ȱȃ ȱ’œȱŠ—ȱ’—žœ›¢ȱ™›˜Ÿ’’—ȱœŽ›Ÿ’ŒŽœȱ across  the  country,  they  have  an  idea  of   later  on  invest  the  funds  required  to  revive  
and  not  involved  in  the  selling,  buying  or   ‘˜ ȱ–žŒ‘ȱ˜•ȱ’œȱ™›˜žŒŽȱ’—ȱŠ—Šǯ ‘ŽȱŠŒ’•’¢ǯ
trading  of  precious  metals,”  the  company   ȃœȱŠ›Žȱ‘Žȱ•Š›Žœȱ™›˜žŒŽ›œȱ˜ȱ œȱŠȱ›Žœž•ǰȱ˜ŸŽ›—–Ž—ȱ‘Šœȱ˜ȱ˜ȱ‹ŠŒ”ȱ
—˜Žǯ ˜•ȱ’—ȱŠ—ŠǰȄȱ‘ŽȱœŠ’ǰȱȃ‹žȱ‘ŽœŽȱž¢œȱ to  square  one  and  get  new  investors  four  
ȃ ȱ˜ȱ‘ŠŸŽȱŠȱ’—Ž›Š•ȱŽŠ•Ž›Ȃœȱ ™›˜žŒŽȱ’—ȱ›Š–œǯȱ ȱ¢˜žȱŒ˜–‹’—ŽȱŠ••ȱ ¢ŽŠ›œȱ•ŠŽ›ǯȱ‘Žȱœ˜›¢ȱ˜ȱ ’•Ž–‹Žȱ’œȱ—˜ȱŸŽ›¢ȱ
License  as  it  is  essential  for  various   their  sites  in  Uganda,  they  cannot  produce   ’쎛Ž—ȱ›˜–ȱ‘Šȱ˜ȱ‘Žȱž”ž•žȱ™›˜“ŽŒǯȱ
business  purposes  and  it  is  one  of   Ž—ȱ”’•˜œȱ˜ȱ˜•ȱŠȱ–˜—‘ǯȱ‘Šȱ’œȱ ‘¢ȱ‘Žȱ Šœȱ¢ŽŠ›ǰȱ ȱŒ˜—žŒŽȱŠ—ȱ’—ŸŽœ’Š’˜—ȱ
‘Žȱ›Žšž’›Ž–Ž—œȱ ȱ’œȱœž‹–’Ĵ’—ȱ œ˜ž›ŒŽȱ˜ȱ‘Žȱ˜•ȱŒ˜–’—ȱ˜žȱ˜ȱ ȱ which  revealed  that  the  award  of  the  
 ‘Ž—ŽŸŽ›ȱ‘Ž›Žȱ’œȱŠ—ȱŽ¡™˜›ǯȱ ŒŠ——˜ȱ‹ŽȱŠ—ŠǯȄ Ž¡™•˜›Š’˜—ȱ•’ŒŽ—ŒŽȱ‹¢ȱ ȱ˜ȱ˜—œ˜—ȱ
 ȱŠ•œ˜ȱ—˜Žȱ’ȱ‘Šœȱ–ŽŒ‘Š—’œ–œȱ’—ȱ Therefore,  Binyina  says,  since  the   —Ž›¢ȱ ›˜ž™ǰȱŠ—˜‘Ž›ȱ‘’—ŽœŽȱŒ˜–™Š—¢ǰȱ
™•ŠŒŽȱŠ’–ŽȱŠȱŠŸ˜’’—ȱ›Š’—ȱ’—ȱŒ˜—Ě’Œȱ ŽŸ’Ž—ŒŽȱœ‘˜ œȱ‘Šȱ ȱ’œȱŠȱ˜•ȱ  Šœȱ›Šžž•Ž—ǯȱŠ‘Ž›ȱ‘Š—ȱŠ••˜ ȱ‘Žȱ ȱ
˜•ǯȱ exporter,  they  have  a  duty  to  declare  the   ˜ȱžœŽȱ‘Ž›ȱ’—Ž™Ž—Ž—ŒŽȱŠ—ȱŠ”ŽȱžŽȱ
ȃ—¢ȱŒžœ˜–Ž›ȱ‘Šœȱ˜ȱž•ę••ȱ˜ž›ȱ ȱ œ˜ž›ŒŽȱ˜ȱ‘’œȱ˜•ǯȱ action,  President  Museveni  intervened,  
(Know  Your  Customer)  procedures  by   ȃ‘Ž› ’œŽǰȄȱ’—¢’—Šȱ Š›—Žǰȱȃ ’‘ȱŠ••ȱ blamed  her  for  disrupting  the  project  and  
providing  relevant  information  and   ‘ŽœŽȱꗐŽ›œȱ™˜’—’—ȱŠȱ ǰȱ‘Ž›Žȱ’œȱŠȱ ’›ŽŒŽȱ‘Ž›ȱ˜ȱ•ŽŠŸŽȱ˜—œ˜—ȱŠ•˜—Žǯ
‘Ž’›ȱŒ˜–™Š—¢ȱ•ŽŠ•ȱ˜Œž–Ž—œǰȄȱ ȱ ›ŽŠ•ȱ›’œ”ȱ˜ȱž›—’—ȱŠ—Šȱ’—˜ȱŠȱ›Š—œ’ȱ ŽŠ›œȱ•ŠŽ›ǰȱ‘Žȱž”ž›žȱ™›˜“ŽŒȱ’œȱ¢Žȱ˜ȱ
—˜Žǰȱȃ ȱ’œȱ˜’—ȱžŽȱ’•’Ž—ŒŽȱ˜ȱ’œȱ route  for  illicit  gold,  which  can  threaten   deliver  the  expected  dividend  and  has  
suppliers  in  the  same  way  as  other  foreign   ™ŽŠŒŽȱŠ—ȱœŠ‹’•’¢ȱ’—ȱ‘Žȱ›Ž’˜—ǯȄ been  caught  up  in  endless  dispute  with  
Ȧȱ’—Ž›—Š’˜—Š•ȱ›Žę—Ž›’ŽœȱŠ›Žȱ˜’—ǯȄ There  are  also  concerns  that  given   •˜ŒŠ•œȱ˜ŸŽ›ȱŒ˜–™Ž—œŠ’˜—ǯ
The  company  also  noted  that  they  have   the  past  record,  where  Uganda  is   Critics  also  say  because  of  such,  
been  competing  with  huge  smuggling   accused  of  plundering  Congo,  it  is  not   investors  are  disregarding  institutions  and  
—Ž ˜›”œȱȃŠœȱ ŽȱŠ›Žȱ™›˜–˜’—ȱ‘Žȱ•ŽŠ•ȱ hard  to  foresee  Uganda  slammed  with   violating  laws  with  impunity  because  they  
›Š–Ž ˜›”ȱŠ—ȱ•Ž’’–ŠŽȱœž™™•¢ȱŒ‘Š’—ȱ international  sanctions  if  these  issues  are   Š›ŽȱŠœœž›Žȱ˜ȱžœŽŸŽ—’Ȃœȱ™›˜ŽŒ’˜—ǯ
‘žœȱœ–ž•Ž›œȱŠ›ŽȱŽŸŠœŠŽȱ˜—ȱ Ȃœȱ —˜ȱŽŠ•ȱ ’‘ǯ Inside  sources  have  told  the  
success  and  doing  everything  to  suppress   ȱ’—ȱ’œȱ ž—Žȱ›Ž™˜›ȱŠ•œ˜ȱ—˜Žȱ‘Šȱ —Ž™Ž—Ž—ȱ‘Šȱ˜ĜŒ’Š•œȱ›˜–ȱ‘Žȱ ǰȱ
 Ȅǯ President  Museveni,  without  following   ȱŠ—ȱȱŠ›Žȱ ˜›”’—ȱ“˜’—ȱ˜—ȱ‘Žȱ
ȃ‘ŽȱšžŽœ’˜—ȱ’œDzȱ ‘¢ȱ’œȱ ˜Žĵȱ›Žžœ’—ȱ žŽȱ™›˜ŒŽœœǰȱ’›ŽŒ•¢ȱ’—ĚžŽ—ŒŽœȱ‘ŽȱŠ Š›ȱ ˜ŽĵȦ ȱŒŠœŽȱŠ—ȱŽœ™’ŽȱžœŽŸŽ—’Ȃœȱ
to  declare  his  operations  and  cooperate   of  deals  to  investors,  who  sometimes  turn   protection,  they  agreed  at  a  mid-­‐‑December  
with  these  institutions  according  to  the   ˜žȱ˜ȱ‹ŽȱŠ”ŽœǰȱŽŸŠŽȱŠ¡ŽœǰȱŠ—ȱŠ‹žœŽȱ meeting  that  the  DPP  goes  ahead  and  
law  if  he  has  nothing  to  hide?”  wondered   ‘ž–Š—ȱ›’‘œȱŠ—ȱ‘ŽȱŽ—Ÿ’›˜—–Ž—ǯ ™›˜œŽŒžŽœȱ ȱœ™ŽŒ’ęŒŠ••¢ȱ˜›ȱŽŒ•’—’—ȱ
Don  Binyina,  the  Executive  Director,   ˜›ȱ’—œŠ—ŒŽǰȱ›Žœ’Ž—ȱžœŽŸŽ—’ȱŠœ”Žȱ to  provide  a  copy  of  their  operating  
African  Centre  for  Mineral  Policy    ȱ˜ĜŒ’Š•œȱ˜ȱ˜ěŽ›ȱŠȱŘśȬ¢ŽŠ›ȱŒ˜™™Ž›ȱ •’ŒŽ—ŒŽȱŠ—ȱ›Ž’œŽ›ȱ ’‘ȱ‘Žȱ ǯȱ‘Žȱ
ǻǼǯ mining  concession  deal  for  the  copper   ǰȱ–ŽŠ— ‘’•Žǰȱ’œȱŒŠ››¢’—ȱ˜žȱŠȱ‹›˜ŠŽ›ȱ
deposits  worth  $  26  billion  at  Kilembe   ’—ŸŽœ’Š’˜—ȱ˜ȱ ˜ŽĵȦ ȱ˜™Ž›Š’˜—œǯȱ
Questionable exports Mines  to  a  Chinese  consortium-­‐‑-­‐‑  Tibet  
Binyina,  who  is  also  the  Chairman  of   Industry  Company  Ltd  without  following  
‘Žȱž’ȱ˜––’ĴŽŽȱ˜ȱ‘Žȱ —Ž›—Š’˜—Š•ȱ žŽȱ™›˜ŒŽœœǯȱ

Jan 05 -‐ 11, 2018 13

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