KAMPALA, UGANDA — Abdul Aziz Yousif Mohammed Adam, a 52-year-old Sudanese national, has been charged with defrauding a Dubai-based businessman, Osman Hussan, of $650,000 in an elaborate gold scam.
The scam, which unfolded in September and October 2024, involved Mr. Adam and others posing as gold sellers, deceiving Mr. Hussan into paying for non-existent gold, court records show.
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Mr. Adam, also known as Aziz, appeared before Senior Principal Magistrate Jalia Basajabalaba on Wednesday and denied the charges. He was remanded to Luzira Prison after failing to present sureties.
According to the prosecution, led by Ms. Shiphrah Nidoi, Mr. Adam introduced himself to Mr. Hussan as a gold dealer with 785 kilograms of pure gold. He allegedly presented fake documents, including a safe-keeping receipt from Exxaro Minerals International Limited, to convince Mr. Hussan of the gold’s authenticity.
Court documents reveal that Mr. Hussan paid $18,000 for accommodation, $5,000 as part payment for the gold, and $82,000 for smelting processes. Additional payments were made for taxes and brokerage fees, totaling $650,000.
The scam began to unravel when Mr. Hussan failed to receive the gold. He reported the incident, leading to Mr. Adam’s arrest.
“You are presumed innocent in this case until the state brings evidence to prove that you are guilty or when you plead guilty,” Ms. Basajabalaba told Mr. Adam. “You are hereby remanded until November 28 for the mention of your case.”
The case highlights concerns over gold scams in Uganda, with authorities urging caution when dealing with precious minerals.
Experts warn that gold scams are becoming increasingly sophisticated, with scammers using fake documents and posing as legitimate dealers.
The Ugandan government has vowed to crack down on gold scams, with increased surveillance and prosecutions.
Mr. Adam’s case has been adjourned until November 28.
