The government of Uganda has detained a former Kenyan assistant minister over Ksh 134.5 million gold smuggling claims.
According to the authorities in the East African county, Stephen Kipkiyeny Tarus’ smuggled gold was destined for Dubhai where companies like Kostbar International are some of his clients.
The 13 kilos of gold were smuggled into Uganda using fake documents and are worth hundreds of thousands of dollars.
Mr Tarus was arrested last week and arraigned before a Ugandan anti-corruption court on Wednesday, January 10, this week.
He is facing charges of gold smuggling, fraud, and forgery of Uganda Revenue Authority (URA) documents.
He was remanded at Luzira prison until January 18, pending investigations into his involvement in a gold smuggling ring with links to Kampala.
The assistant minister served under the late President Mwai Kibaki and as Kenya’s high commissioner to Australia between 2009 and 2012.
Gold smuggling menace in the region
According to The East African, a report by the Global Initiative Against Transnational Organised Crime reveals that Uganda is a regional hub for illicit gold smuggled from neighbouring countries, mainly the Democratic Republic of Congo (DRC), South Sudan, and Kenya.
“Once the smuggled gold arrives in Uganda, traders claim it is of Ugandan origin, supported by fraudulent documentation that is difficult for the authorities to disprove,” the report says.
It adds that Uganda is an attractive market for illicit gold because of the ease with which it can be moved and traded due to insecurity in the DRC and South Sudan.
From Uganda, the gold finds its way to international markets, with a 2017 report by the United Nations Group of Experts identifying the country as a major transit route for illicit gold to the United Arab Emirates.
Gold is a valuable commodity in the world, attracting high prices. Gold scams have also hit the headlines in Kenya. In one case, Australian citizens reported to the police that they were conned by some people who claimed to sell them real gold.
Additionally, a high-ranking judicial official was also linked to gold scams in the country, although she denied the allegations.
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