Aremo Trading Centre, Moruleng Sub County in Abim District is renowned for gold trade. It is here that dealers from Kampala and other cities like Gulu buy gold from artisanal and small-scale miners.
Lately however, a worrying trend is catching on as a thriving market for fake gold is growing.
Basil Oketch, a miner and gold buyer, narrates that the vice started way back in 2015 though at a minimal scale. In 2019 however, it picked up as the perpetuators, mainly from Gulu and Kampala, increased in number.
He further reveals that the unscrupulous traders mainly target middlemen and miners who retain a cut once unsuspecting victims have bought the fake gold, which is usually disguised by mixing it with the genuine product.
Basil however notes that keen miners can tell the difference between fake and genuine gold, unlike buyers who in most cases have not mastered the unique qualities of the precious mineral. He narrates that once, dealers attempted to sell fake gold to his wife through one of the women that supply gold to him.
Basil says that the fake gold dealers have become so comfortable, they are no longer discreet when pulling off their deals. Sadly, some miners have increasingly joined the scam, and are continuously selling fake gold which has now circulated their market.
He cites a few incidents involving buyers being scammed with fake gold.
Asuman Kasigwa, a businessman from Kampala is one such victim. Early this year, he bought 148g of gold at UGX 130,000 per gramme from three traders in Abim. However, on taking the gold to the African Gold Refinery (AGR) in Entebbe for sale, he was told it was fake. He lost over UGX 19million. He reported the case at Abim Central Police, where the three culprits were arrested, but granted bail three days later.
“I reported the case in February towards the elections, and to date, there is no progress with the case. I called the CID and he just kept telling me stories,” he says.
Another victim (names withheld) narrates that he lost UGX 70,000,000 after buying 518g at UGX 135,000 per gramme. On discovering it was fake after he took it for sell at the AGR, he reported a case at Kibuli police station, but like in Asuman, the case seems to have died.
“My company had plans to provide scanners to help the miners in Moruleng during exploration. Now, you cannot convince me to go back there.”
Killing business
While the authentic traders sell gold at UGX 150,000 a gramme, those dealing in the fake one sell between UGX 70,000 and UGX 100,000, consequently attracting unsuspecting buyers who lose millions.
The reputation of the gold market in Moruleng has now been soiled, deterring buyers who opt to source from other districts in the Karamoja region.
“These people have spoilt our name. No one wants to buy gold from Moruleng anymore. And yet our gold is very pure,” laments Basil.
Denis Bitwababo, the assistant criminal intelligence director Abim, narrates that he once received a case in February 2021, arrested the culprit who was taken to court and is currently on remand. The perpetuator is said to have sold 30 grammes of fake gold, conning the client nearly UGX 4 million.
The suspect was picked from Oyam district where he was said to be sourcing the fake gold. Bitwababo says most cases are not reported since most dealers are not licensed to trade in gold.
“They complain about fake gold but they cannot report because they are trading illegally,” he says, adding that most of the gold buyers who are from Kampala report cases there.
Basil says they have made efforts to fight the vice together with the Karamoja region directorate of geological survey and mines.
