Uganda was last week a place of interest for the United Nations Group of Experts on the Democratic Republic of Congo as the team sought answers over the sanctions they have imposed on some Congolese warlords.
The UN team needed to know if some of the people it considers criminals had either run to Uganda or were doing business there. The UN slapped an arms embargo, travel bans, and asset freezes on some people it considers to have engaged in crime.
The UN met members of gold refiners association in Uganda at Serena hotel recently, seeking to verify allegations of huge amounts of gold being traded in the country. These allegations have been peddled by non-governmental organisations such as The Sentry, which have claimed that illicit gold has been traded in Uganda. These allegations have never been independently proved.
The association of gold refiners is largely composed of five companies: Simba, African Gold Refinery, Metal Smelting, Bullion, and Aurnish. These companies are credited for transforming Uganda’s gold industry from a dark industry, where transactions are hidden from regulators, to a more transparent and visible sector, where volumes and values of gold are easily traced.
The UN Group of Experts on the DR Congo usually publishes its report every year. Uganda usually features in that report. According to a statement we have seen, the UN team also asked the gold refiners whether they carry out due diligence to ensure that the gold they are adding value to is not illicitly sourced.
There were also questions around the latest change in legislation, which recently introduced a $200 levy on every kilo of gold exported, and 5 per cent for unprocessed gold.
A source says the UN experts were told that most of the gold the refiners get is from within Uganda, collected by artisanal miners. The refiners advised the UN team to verify the figures with the ministry of Energy and the customs authorities.
Gold is now Uganda’s largest export, whose value now accounts for just over 40 per cent of the total export receipts. Refiners are responsible for the growth in this figure, especially by uplifting the sector from a hidden black market to a more transparent and official industry, where tax authorities can also generate revenue.
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