The Gold Refinery in Entebbe get sanctioned by the U.S. Treasury [which is the African Gold Refinery]

“gold is gold, and they simply need gold” – Gold Smugglers (UN, 2020, P: 19).

Today on the 17^th March 2022 the U.S. Treasury has sanctioned the African Gold Refinery and Alain Goetz. This is hitting the Government of Uganda (GoU) which has been proud of this refinery. They are directly hitting the profitability and ability to trade. As the AGR will be blacklisted and possibly make it harder sell it’s gold.

In the U.S. Treasury statement today, it said this:

“Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), sanctioned Alain Goetz, the African Gold Refinery in Uganda, and a network of companies involved in the illicit movement of gold valued at hundreds of millions of dollars per year from the Democratic Republic of the Congo (DRC). The illicit movement of gold provides revenue to armed groups that threaten the peace, security, and stability of the DRC. Today’s action was taken pursuant to Executive Order (E.O.) 13413, as amended by E.O. 13671, which targets, among other things, individuals and entities involved in activities that threaten the peace, security, or stability of the DRC or that undermine democratic processes or institutions in the DRC. Our action demonstrates the U.S. commitment to disrupt the illicit mineral trade and encourage mining sector transparency” (U.S. Treasury – ‘ Treasury Sanctions Alain Goetz and a Network of Companies Involved in the Illicit Gold Trade’ 17.03.2022).

Where it further states:

“Since 2016, AGR has sourced illicit gold from mines in regions of DRC that are controlled by armed groups, including the Mai-Mai Yakutumba and Raia Mutomboki that are involved in destabilizing activities in South Kivu, DRC. AGR has a refining capacity of 219 tons per year and is considered one of the largest gold refineries in Africa, after refineries in South Africa and Ghana. AGR and Goetz acknowledged that a share of the gold AGR refines comes directly from mines in the DRC and has taken over a significant portion of the market for gold trafficked from the DRC” (U.S. Treasury – ‘ Treasury Sanctions Alain Goetz and a Network of Companies Involved in the Illicit Gold Trade’ 17.03.2022).

The U.S. Treasury isn’t taking this information from nowhere. This has been recorded and proven through United Nations Experts reports over the years. The Entebbe Gold Refinery has been tracked and so has all the illicit minerals, which has gotten to it. It has been taken from conflicts and been a valuable commodity for the militias inside the Democratic Republic of Congo, which trough various of channels has traded it with the AGR. Who again has sold it to the world market.

Back in 2020, there was further proof of how it was operated as:

““The Group established that, on 9 February 2018, African Gold Refinery Ltd sold its shares to AGR International Ltd, a company registered in the Seychelles at Global Gateway, 8 rue de la Perle, Providence, Mahe, Seychelles (see screenshot below). The Group wrote to the authorities of the Seychelles, who confirmed that AGR International Ltd was registered in the Seychelles at the address listed in the Uganda Registration Services Bureau documents” (UN, 2020, P: 107).

So, this corporation will have international implications. It will not only go after Goetz or AGR. This will go even further with time. A Belgian report on the Refinery in 2019 said this:

“Sources in government refer to a speech by the Ugandan president at the ceremonial opening of AGR in 2017. Museveni then said that government agencies opposing the refinery would be ‘tackled hard’. ‘Goetz feels unassailable. And not without reason. He clearly has the protection of President Museveni himself’, says investigative journalist Haggai Matsiko of the Ugandan monthly The Independent. ‘Goetz has put a lot of money into its project (AGR says it has already invested $40 million, ed.). The president seems convinced that the refinery adds economic value by turning Entebbe and Kampala into a gold hub.’” (Kasper Goethals – ‘‘Gold is a dirty business, even if I do say so myself’ 20.04.2019, De Standaard).

With this in mind, this is a major blow to the wishes of President Museveni. The U.S. is sanctioning it and setting a precedence of which makes transactions with it questionable. Yes, at this moment it is about trading and association with U.S. businesses and citizens. Alas, the AGR is a prestigious part of the gold adventure Museveni wanted to have.

Let us not forget the June 2017 Global Witness Report “Under-Mined” on the AGR, which stated this:

“African Gold Refinery is run by a small group of Belgian and Ugandan businessmen, including former government minister Richard Kaijuka, who are managing to ship hundreds of millions of dollars’ worth of gold out of Uganda without disclosing its origin and paying very little tax in the process. They are the owners and managers of a newly built gold refinery on the shores of Lake Edward near Entebbe airport. Remarkably, Barnabas Taremwa: brother-in-law to Salim Saleh, Museveni’s most famous brother and Uganda’s de facto number two, told Global Witness that he had helped negotiate the company’s huge tax breaks with the government (corroborated by documents seen by Global Witness) and set up supply routes for the refinery” (Global Witness, P: 27, 2017).

““Alain Goetz, who is also the CEO of the company, a Belgian national, is one of the most famous dealers of Congolese gold in recent history. During the 90s the Alain and his father Tony, who died in 2005, were reported as dominating gold exports from the Congo through their networks to Belgium and later Dubai” (…) “Mr Barnabas Taremwa, who previously worked for AGR is the brother in law of Salim Saleh, the President’s brother. AGR told Global Witness in a letter dated January 2017 that Taremwa’s sister and Salim Saleh had divorced three years ago, seemingly in an attempt to distance themselves from the General. However, Salim Saleh told Global Witness that “Barnabas Taremwa is still my brother in law and it is false and an insult to me for you to state that I divorced his sister.” (…) “Richard Henry Kaijuka is the Chairman of AGR.160 According to an article in Africa Energy in June 2011, Mr Kaijuka is “a childhood friend of President Yoweri Museveni, who fell out with the regime after he opposed a controversial constitutional amendment in 2005 that removed presidential term limits.” (Global Witness, P: 73, 2017).

So, if you know all of this. You know the AGR is hitting home. This will hit the State House and the Presidency. Not only the pride of selling illicit minerals from militias in the DRC. No, he will not earn profit on the tears and suffering of the DRC anymore. At least not at the same scale or have the possibility of trading it to the United States. This is a proof of the possible damage it can do. This is million of dollars of exports that can be hit by this sanction. Because, AGR is a tainted business…

That is the truth here and it is about time. Reports about it from it’s inception should have been the warning sign. Yes, the official date was back in 2017, but it was operating from 2014. So, there been lost years and the AGR haven’t really complied with proof of where the gold came from and therefore, this is well deserved. Finally, a place which is a hot-spot for conflict minerals get hit with sanctions. Peace.

UN Report: 95% of Ugandan Gold Exports with other Origin [AGR registered in Seychelles]

“gold is gold, and they simply need gold” – Gold Smugglers (UN, 2020, P: 19).

The newest UN Group of Experts Report on the Democratic Republic of Congo (DRC) was just recently published. This article here will focus on the gold smuggling operation and the amount of smuggled gold to Uganda from the DRC. This report really states the amount and the way the Ugandan exporters are trading the gold from there. The direct connection between these Republics are clear. This has been stated before, but not to these levels.

If your thinking this sort of business is clean and done after protocol. Then this report will shatter and break the glass. This report is explaining and showing more intelligence on how its done. We can easily see that the Ugandan authorities and the Entebbe Gold Refinery are only having its ability to be trading and minting the gold on the basis of gold smuggling from the DRC.

Just look:

“The Group estimated, using information published by the Ugandan authorities, that over 95 per cent of gold exports from Uganda were of non-Ugandan origin for 2019” (UN, 2020, P: 20).

The next part is a proof of a way of illegal export and gold smuggling. Where there is one company operating doing so and how they are registered. While other bodies are claiming they are fraud. This shows what sort of ways the traders, smugglers and exporters are doing to be able to deal with the gold. What is really striking is the way the supposed fraudulent corporation are using all sorts of means to operate. They are even using bank accounts for other companies, which in the end might be a sign of illegal activity. As they are keeping everything of the books.

Vaya Forex Bureau forgery:

“The Group found however that during the reporting period, sanctioned entity Uganda Commercial Impex (UCI) Ltd (CDe.009) retained an active business registration according to publicly available Uganda Registration Service Bureau information. The Group also noted that, according to an official ICGLR gold export certificate, Vaya Forex Bureau in Uganda acted as an intermediary in an official gold export (see para. 87 of this report). Incorporated in 2007, the two shareholders of Vaya Forex Bureau were Vaya Kiran Rajendra and Vaya Vipal Kumar Maganlal, family members of Rajendra “Raju” Vaya, owner of sanctioned entity of Machanga Ltd (CDe.007) (see S/2015/19, annex 63). The Group wrote to Vaya Forex Bureau but did not receive a response by the time of writing this report. Finally, the Group noted that, according to publicly available Uganda Registration Service Bureau information, Sameer Bhimji was a signatory on the bank accounts of The Bullion Refinery Ltd (see S/2018/1133, para. 97) until 23 April 2019” (UN, 2020, P: 72).

“AGR told the Group that “a so called Vaya Forex Bureau” was unknown to the company and did not hold an account with AGR. The company further stated that they considered that the ICGLR document may be a “forgery” or “fraud” and that the company had already been the target of several such attacks. The company further committed to preventing forgery or fraud, and to reporting such activities to relevant Ugandan authorities and to relevant authorities abroad, as well as “instituting criminal and civil proceedings against the perpetrators”” (UN, 2020, P: 101).

What is more interesting is that the AGR in Entebbe has switched owners and is also registered in the Seychelles. What is known about the Seychelles in this manner is that they usually is confidential and tax-exempt to a degree. This means the AGR is run most likely in a tax-haven by its owners. While they are earning their profits. That is how I crack this one down. They wouldn’t have registered the company there after selling its stakes. If there wasn’t any benefits in doing so. Right?

Here is the information about AGR:

“The Group established that, on 9 February 2018, African Gold Refinery Ltd sold its shares to AGR International Ltd, a company registered in the Seychelles at Global Gateway, 8 rue de la Perle, Providence, Mahe, Seychelles (see screenshot below). The Group wrote to the authorities of the Seychelles, who confirmed that AGR International Ltd was registered in the Seychelles at the address listed in the Uganda Registration Services Bureau documents” (UN, 2020, P: 107).

We already know the AGR has connections to the President and his family. Therefore, the move of liabilities to Seychelles is to safeguard the profits in a tax-haven. There is no other way to see it. This is so the future state will be in more trouble to follow the money and also get the accounts frozen by authorities.

This is it for today. Peace.

UN Experts Report says NDC-R finance itself on illegal gold trade to Uganda and Burundi

Again, there is illegal gold trade to the neighbour republics of the Democratic Republic of Congo. This time its the NDC-R whose trading illegal gold to Uganda and Burundi. That means the militia is funnelling funds by illegal mining and trading. Also, that the Ugandan and Burundian authorities are earning fortunes on the soldiers of fortunes in the province of North Kivu.

However, this is not really new that militias and that there is illegal gold trade in the Great Lakes region from the DRC. What was new now, is that athe NDC-R is involved in this. There been other groups in the past and shown that the African Gold Refinery (AGR) of Entebbe, the refinery owned by Gen. Salim Selah, the half-brother of the President Museveni have been involved in this trade. Also, selling the gold to the United Arab Emirates. Therefore, what is in this months report. Shows, another pattern, but says what militia who does it. Which is an interesting tale, as the illegal trade is boosting the NDC-R and their capabilities to cause havoc in the province.

NDC-R:

“The Group has found that the armed group Nduma défense du Congo-Rénové (NDC-R) has remained active in North Kivu and has continued to recruit and expand. NDC-R engaged in fighting with the Collectif des mouvements pour le changement (CMC) comprised of Nyatura factions, the Alliance des patriotes pour un Congo libre et souverain (APCLS) and FDLR-FOCA in Masisi and Rutshuru territories” (Midterm report of the Group of Experts on the Democratic Republic of the Congo, P: 6, 20.12.2019).

Financing of the militia:

“A senior NDC-R combatant with first-hand knowledge of the matter and three NDC-R members recounted that gold sales brokered by close relatives of Guidon, who sold to gold buying houses in Goma, also generated cash for the movement. Sales were cash-based and were not usually documented. The Group is aware of two occasions on which senior NDC-R ex-combatants sold gold to buyers in Uganda and one on which they did so in Burundi” (Midterm report of the Group of Experts on the Democratic Republic of the Congo, P: 10, 20.12.2019).

This is a worrying sign. Not that its new, but this shows how the NDC-R is financed. Through illicit financing through illegal gold-mining and illegal gold trade. There been trade between Butembo/Goma and over to Entebbe through back-channels. If the NDC-R does this, that wouldn’t be shocking either. Not that the UN Experts Report is specific about this matter.

However, it again reveals more details and reports about one specific group. Which is interesting for the world to know. That it happens to be a group, which has FDLR-FOCA fighters is even more special. Since, there been reports of meetings and supporting arms to them over the last few years. Therefore, the revelation of NDC-R connection with FDLR-FOCA opens more questions, than what it answers. Peace.

New details in the UN Experts Report: On the Illegal Gold Export from Butembo to Uganda!

This is now more than known, that the Gold Refinery in Entebbe is a source of gold from Democratic Republic of Congo. Where the illicit gold export persists. This is a problem, where the state are not able to catch and the wealthy traders in Butembo/Bukavu bribe the local government associates. This here is showing how the President of Uganda and his family is involved in the illegal trading of gold. As the African Gold Refinery, which the First Family is owning is involved in. They are not transparent and for the reason, that the state doesn’t want to take responsibility for this trade.

“Several sources associated with gold trade told the Group that wealthy traders in Butembo and Bukavu or buyers in transit countries and Dubai financed the smugglers, enabling them to buy gold and transport it to foreign markets. Two sources directly involved in such transactions with gold traders based in Butembo told the Group that traders with no affiliation with the gold trade lent money to their bosses. The latter used the money in order to buy gold in Butembo. Traders who lent money were paid back in cash, either in Kampala or in Dubai, by those who received gold. The Group believes that circumventing the banking system through gold-based financial transactions generates a lack of transparency and violates the recommendations of the Financial Action Task Force as reflected in Congolese legislation” (Final report of the Group of Experts on the Democratic Republic of the Congo, P: 35-36, 2019).

“Uganda declared gold exports of 12,000 kg, but the United Arab Emirates said that it had received 21,044 kg of gold from Uganda” (…) “The Group noted that, at the time of writing, the authorities of Uganda had failed to send the Group the report of their investigations into the activities of Kampala-based gold traders, as officials had promised. On 16 January 2019, the Group met with representatives of African Gold Refinery Ltd. (AGR) at AGR premises in Entebbe, Uganda, and discussed in particular the fact that AGR had yet to provide the names of its suppliers to the Group” (Final report of the Group of Experts on the Democratic Republic of the Congo, P: 36, 2019).

This is just verified reports from the United Nations Experts, whose investigated it. They have digging deeper. The Report is continuing to show how the state is benefiting of the illegal trade, as long as the Democratic Republic of Congo is missing it. They are being looted by illegal logging, trading, smuggling and not doing due diligence of the mineral resources produced there.

The Ugandan authorities doesn’t care that this is stolen and not verified, as the refinery is showing that they are not caring about the production or the proper protocol of the mineral production, as long as they are profiting from the illicit trade. This is the moral of the story, as the elites of Kampala are eating of the illegal trade. They are doing this and continuing to do so. Peace.

UN Experts Report expose illegal Gold Export to Uganda!

Again and again, the UN Experts are getting validated sources of mineral exports, which are ending up in the hands of the Gold Refinery in Entebbe, Uganda and ending in Dubai, United Arab Emirates. These stories continues, as the National Resistance Movement (NRM) and President Museveni are taking advantage of the lack of authorities and control of the borders. That is why the Ugandan can get the illicit gold and earn fortunes of the trade.

They are forging documents and doing so by tricking customs and ways. To ensure, the gold goes from Bukavu to Entebbe into the hands of the AGR. The company, which happens to run by Gen. Salim Selah, the brother of the President. The State House of Uganda is earning fortunes on the illicit trade of gold and forging the gold sources even.

Take a look:

“In addition, the Group found that Ugandan authorities lacked a coherent policy to combat smuggling. The Group also found that Kampala-based gold exporters did not have an efficient system to avoid the contamination of their supply chains with illegally traded gold from the Democratic Republic of the Congo” (…) “In fact, documents concerning a supplier for AGR obtained by the Group show the risk of contamination of the supply chain with gold illegally sourced or traded from the Democratic Republic of the Congo. The supplier, a Congolese national based in Bukavu who provided AGR, in October 2018, with gold worth more than $3 million, travelled with an official document, delivered five months earlier, identifying his occupation as that of an electrician. The supplier declared to AGR that the gold was sourced from the United Republic of Tanzania. Initial investigations conducted by the Group suggested that the individual was used as a broker by many Bukavu-based gold smugglers” (UNSC, 2018).

We have seen these stories before, its still vital and important to show, yet more evidence of the illegal export and illicit trading of the Congolese gold through Ugandan exporters, which happens to be in connection with the President and his brother Gen. Selah. This is common knowledge, but has to be addressed. As the ownership of the AGR is known and also, how that implicates the State House.

This is just a few statements of what they do, but still enough to prove how they do it. As this is very fresh reports and just out from the UNSC and their experts. Peace.

Reference:

United Nations Security Council (UNSC) – ‘Letter dated 18 December 2018 from the Group of Experts on the Democratic Republic of the Congo addressed to the President of the Security Council’ (31.12.2018)

Sukulu Phosphates Plant: A Chinese Nugget!

Well, it had to come to this. On the opening day of the Phosphates Plant in Sukulu in Tororo District. Someone digs into the back history of the industrial adventure done today. Like we had to have the knowledge of the President launching it for the first time:

“President Museveni launched the construction of the complex in August 2014. The construction work was expected to be completed by the end of this year, however, there were delays in securing funding from the banks, and also technology that will be employed” (Uganda7 – ‘Sukulu fertiliser factory to open in October’ 25.07.2018).

Therefore, this is a long story, even to the early days of the Museveni administration, when they were conducting studies with African Development Bank and the World Bank to find a good way of utilizing the reserves and mineral rich area of Tororo. This they started on in 1989. Surely, the President has forgotten about the companies and the ones involved back than. The study of the possible comes from back-then. The one well known, as the original studies back to 1950s is not that accessible. However, it is more to the story. Before it became a Chinese Nugget and a possible mine for them.

Sukulu Hills:

“The Study concluded that the Sukulu Hill deposits, the largest one in East Africa, with reserves estimated at about 230 million tons of residual soil with an average grade of 11-12Z P205, are easily mineable–as confirmed by a successful trial mining test executed under the Study; and furthermore, that on-site beneficiation of the rock could upgrade the P205 content up to 40-44Z, a level among the highest in the world. In order to select the optimal plant configuration, the Study considered 29 different scenarios, from the simplest ones (ground rock, partially acidulated rock, single superphosphate)to the most complex (triples uperphosphate,mono-ammonium phosphate, diammonium phosphate), at different levels of plant capacity and under different assumptions of sulfuric acid availability. A plant with a capacity of 217 i000 tpy of SSP based on local sulfuric acid production from imported sulfur was recommended as part of the optimum project configuration” (World Bank – ‘PROJECT COMPLETION REPORT UGANDA – PHOSPHATE ENGINEERING PROJECT (CREDIT 1228-UG)’ (13.06.1989).

Uganda Investment Authority in 2016:

“Nilefos Limited, a local company, has acquired an Retention Licence for the Sukulu deposit. The company is seeking for joint venture partners to develop the mines and manufacture phosphate fertilizers and other by-products” (UIA – ‘Background to the Mineral Sector’ 07.12.2016).

IGG 2014:

“According to the IGG report, Frontier, which counts former Commissioner Joshua Tuhumwire among its senior management, sent two of its staff to file an application for an exploration licence at the DGSM on 26 June 2013. According to the IGG report staff turned them away allegedly citing an instruction from the Commissioner Edwards Katto not to accept any applications for the Sukulu project. They complained to the IGG about the process. As a result the IGG published a number of concerns relating to Guangzhou’s successful application (through its subsidiary Hui Neng)” (…) “According to the Mining Cadastre the Guangzhou exploration licence was applied for on the 24 June 2013 and granted on the 1st of August 2013. Their mining lease was granted on the 29 October 2014. 198 In December 2014, after Guangzhou had received its licences Edwards Katto’s daughter was sent an invite for her to visit Guangzhou’s headquarters, with accommodation at their expense. Nilefos also raised concerns in court that the legal firm, ABMAK, is headed by the son of the then Permanent Secretary to the Ministry of Energy and Mineral Development – Henry Kaliisa which it considered to be a conflict of interest” (Global Witness – ‘Under-Mined’ June 2017).

We can see the hands of Minister of Energy Muloni and others, who clearly didn’t follow protocol on the quest of getting license for the Chinese Mining Corporation, as they differed and moved away from the prospects of a local mining corporation Nilefos, who had been there for a long and even made a feasibility study in 2010 for their operation. Certainly, the Ministry knew about this. But the backroom arrangement was so, especially considering the Ministry was meeting the Chinese, while having licensed to Nilefos. That was known in 2013, as they wrote it on the UIA pages in 2016. Nilefos still had it, who knows if the Chinese had to cough up monies to payout the Nilefos. Because that is the backroom deals we don’t know at this point and who in the Ministry who are beneficiary of the deal that has been done.

When the IGG is not allowed to publish a report on the transactions and licensing of the Sukulu Hills and the plant itself. You know something fishy is going on. There are something up and it isn’t all positive. As well, as how the local has been taken care of, as their houses and plots has been evicted because of the building of the plan.

Like the stories like these:

“In December 2014, the government signed a deal with Guangzhou Dongsong Energy Group Ltd, a Chinese company, to develop phosphates in Sukulu, Tororo District. A total of 4,800 people are expected to be displaced by the project. Affected persons claim they did not understand the terms of the surface land rights lease agreements and were duped by ‘middlemen’ to sign them. General Comment No 24 should clearly indicate the State obligation to ensure free prior and informed consent principles and access to information that is in the hands of both the state and business entities” (UCCA – ‘Comments on the draft General Comment No. 24 on State Obligations under the International Covenant on Economic, Social and Cultural Rights in the Context of Business Activities’ 2016).

As seen by the IGG report and also by the UCCA. There been double-dealing of the license and not by protocol or righteous compensation of the ones living on the land. The Sukulu Plant could have been a positive development and something hopeful. Instead, by looking into it. There are a lot of shadiness going on and its not a good look. This is not a significant story when concerning this President and his administration. However, it shows how personalities and their drive, counters legal justification and finding a common ground. They are land-grabbing and essentially also overpowering the ones already planning to extract the minerals here. This has been done deliberate and with one intent.

The Chinese got the nugget and got the opportunity. The IGG report, which has been kept a secret shows so and the Global Witness is showing it. The President surely has put his stakes into this and therefore, been at the opening in 2014 and now today in 2018. He has clearly had his eyes on this and now was the time. Peace.

The Sentry’s new report have been digging into the export of conflict Gold to the Gold Refinery in Entebbe!

“The conflict gold trade sustains ruthless armed groups such as the FDLR and Congolese army units that commit mass atrocities, sexual violence, and other human rights abuses against the population of eastern Congo. It is critical that actors in the international community, especially global banks that trade gold and the consumers of gold, know the origins of the precious metal they are buying. More importantly, governments and companies need to take action against the corporate networks that traffic conflict gold and move it into the global economy” (The Sentry, P: 20, 2018)

Just as the Global Witness Report of June 2017 named “Under Mined” and United Nations Security Council Report from June 2018 named “Final report of the Group of Experts on the Democratic Republic of the Congo”. Today, the Sentry launched today the report named “The Golden Laundromat”. They are all digging into the illegal and sinister gold trade of the Democratic Republic of Congo and the possible money laundering scheme of President Yoweri Kaguta Museveni and his brother Gen. Salim Selah. Who is both invested in this operation.

This report is again stating the fact and the reality with this trade. As the Sentry is proving new perspective to the matter. These being their analysis of the documentation of the operation and more into the Goetz business practices, which are vital for the export of these conflict minerals. They are showing the trail from the fields and mines in the DRC to the World Market.

Here is some quotes, which I think was worth taking a minute to digest:

“According to interviews conducted and documents obtained by The Sentry, there is a significant risk that AGR sources conflict gold from eastern Congo, and that it imports illegally exported artisanal gold mined in eastern Congo. In 2017, according to documents reviewed by The Sentry, AGR refined and exported 9.3 tons of gold, although the company says it exported 7.7 tons. Several people involved in the trade of Congolese gold with direct knowledge of AGR’s operations told The Sentry that the company sources gold from conflict-affected parts of eastern Congo. Two prominent gold smugglers in eastern Congo acknowledged they sold illegally mined and trafficked gold to AGR from 2016-18, which two South Kivu-based traders confirmed” (The Sentry, P: 8, 2018).

“Furthermore, there is at least reason to suspect that AGR buys gold. Trade insiders told The Sentry that AGR buys gold, and Goetz reportedly decides on the price paid to traders, as well as arranging terms and scheduling of payment. Ugandan export records indicate that AGR exports gold: it exported 9.3 tons of gold in 2017, although AGR says it exported 7.7 tons. Goetz’s original AGR project proposal sent to President Museveni in 2014 calls into question the company’s commitment to due diligence. In the document, Goetz, on behalf of Tony Goetz NV, states that AGR should attract gold from the region and that any gold traders who do not have official documents should be allowed to sell gold to AGR but pay a $500 penalty” (…) “From Uganda, AGR’s gold flows to other Goetz-controlled companies in Dubai. The DMCC was scheduled to audit another company in the Goetz network, Tony Goetz NV, in 2017, but no new audit report has been published. Despite the lack of an updated audit, Tony Goetz NV remains a Dubai Good Delivery (DGD) member today. It had passed the DMCC’s audit on responsible practices in 2015 based on its 2014 activities – before AGR was launched” (The Sentry, P: 13, 2018).

“According to documents reviewed by The Sentry, Goetz sought the intercession of President Museveni in 2014 in order to gain a 10-year tax break for AGR. Three years later, that became a reality when President Museveni announced a pending zero percent tax rate essentially benefitting only AGR. This, in turn, potentially relates to a fourth FATF AML red flag that is applicable to the Goetz network: registration of a trading company in a tax haven even though its business relates to another jurisdiction. While Uganda is not a traditional tax haven, as a practical matter, it presently serves as one for gold refining since Uganda changed its tax structures on gold to attract gold companies” (The Sentry, P: 17, 2018).

What we are seeing as some would be shocked, other would see the deliberate action of the President to support and earn of the illegal gold trade, also ensure the business in Uganda. That the DRC can be used and illegally export the gold, where the business-partner are acting on behalf of the President that has made the arrangement for the refinery in Uganda. This has been done, while also giving AGR a tax-holiday, so that the production will not be taxed and neither able to follow ordinary customs. That means the President and brother together with Goetz knows perfectly well what happens from the DRC to the World Market. They are earning fortunes on the illegal gold trade and is single-handed securing the profits because of it.

The Sentry has done great work collecting the documentation for this and proving their allegations. As others has done to of late. They have extended their work and shown more meat to the bones. Making it a juicy stake. That is showing the acts of violence and killings in the DRC are benefiting the Ugandan President to this day. He is earning wealth on the misery of the Kivu’s, as they by doing this trade keeping up the in-security there. So, that the illegal gold trade can persist… and linger on.

President Museveni knows this and blames the MONUSCO still for being there to long. But his reach and his hands are in the cookie jar. As it has been since he supported Laurent Kabila to overthrow Mobutu. Peace.

Reference:

The Sentry – ‘The Golden Laundromat – The Conflict Gold Trade from Eastern Congo to the United States and Europe’ October 2018

Fresh UN Report: Illigal Gold Smuggling from the DRC to Uganda!

There been new reports on the gold smuggling to Uganda from Democratic Republic of Congo (DRC). However, it needs more reporting, as this illegal trading and looting of mineral resources from the Republic needs to be put a spotlight on. As this trade is feeding illegitimate government and militias whose using force against innocent civilians and citizens in general. This report that is reported in the report from the Group of Experts are expelling a deep, but also a volatile story of how they are transporting and getting the illegal gold into the market.

We can wonder if this gold enters the Gen. Salim Selah owned African Gold Refinery Limited in Entebbe, before flying away into the World Market through the brokers and traders there. We can question that, as the government on both sides of the border is accepting this. They are both earning on this and not registering it. Therefore, the location of extraction is kept secret, while the production and the paperwork is kept under the radar. That is why the consumer cannot know under what condition the gold came from and that is worrying. The smuggling, the lack of paperwork and forging of documents shows they are really pushing the boundaries to get into the global markets.

Also, this shows how blatant disregard for maladministration, they have done deliberately and not cared about the public.

“Smugglers used the road to Mahagi, where they travelled either by motorbike, taxi or even truck. At the border with Uganda, when they were eventually checked, they bribed customs officials on the Congolese side. All of the Group’s informants on this issue confirmed that, in Goli, on the Ugandan side of the border, they were not asked to present papers or explain the origin of gold that they carried. Mahagi is a long-established hub of the smuggling route” (P: 22)

“Two brokers told the Group that they mainly carried gold from mining sites in Kawa and Monbgwalu in Djugu territory. When they arrived in Goli, they would meet with a broker from the Democratic Republic of the Congo, who would accompany them to sell to Kampala-based dealers. One of the brokers told the Group that, until February 2018, he travelled to Kampala every two weeks with about 3 kilograms of gold (approximately $132,000) 20 per trip” (P: 22-23).

“The Group confirmed that, in Entebbe Airport, companies sell empty seats. As previously documented, empty seats are used by smugglers to transport gold concealed in hand luggage. Two individuals associated with the gold sector in Kampala, one Kampala-based gold broker from the Democratic Republic of the Congo and one migration officer stationed at the airport in Entebbe told the Group that, despite the official claim that minerals cannot leave the country without proper paperwork, gold smugglers continue to travel either without documentation or with forged documents. The migration officer and the broker told the Group that the owners of gold being trafficked do not travel themselves but use couriers who fly to Dubai to deliver the gold to buyers there. The two sources added that couriers can operate easily because they bribe customs and security officers at Entebbe airport” (…) “Two Ugandan nationals working for two airlines operating from Entebbe informed the Group that they are not requested to check gold in hand luggage. In the course of its current mandate, the Group held discussions with senior officials of eight airlines operating in and out of the Great Lakes region, who said that their primary role in checking passengers was to make sure no one was carrying anything that could jeopardize the security of the plane, a policy focusing almost entirely on weapons and explosives. The Group is of the view that gold transported on commercial aeroplanes should not be banned as it represents a key form of export for responsible artisanal and small-scale mining activity that observes the requisite due diligence guidelines. However, there is a need to address the loopholes related to the illegal transportation of gold carried in hand luggage on commercial aeroplanes” (P: 24, 2018).

Clearly, the illegal trade of gold should be looked into and be a worry for the international community, as the is funding militias and illegal activity within the DRC. This should not be overlooked, the clear indication of smuggling gold and also not registering the conflict minerals. Therefore, this is sophisticated and using all means to bribe lower level civil servants on both sides, to secure the trade of this can go-on. Both republic’s can do something about this, if they cared or had incentive to do so. However, they seem pretty fine and dandy with this activity. As the state and the close connected activity with the elites who are sponging the funds made from it.

That is why even President Museveni was there for the opening of the Gold Refinery in Entebbe. That shows that the Republic have no trouble with illegal smuggling of gold from the DRC. Peace.

Reference:

United Nations Security Council – ‘ Final report of the Group of Experts on the Democratic Republic of the Congo’ (04.06.2018).

Ministry of Energy and Mineral Development – “Statement on Illegal Mining Activities in Uganda” (02.08.2017)

In Uganda the President’s family directly involved in the Gold Industry and the export of conflict minerals!

“Basically what we do is taking advantage that I’m in government, it’s not a conflict of interest, I don’t use my position for conflict of interest issues, but it’s an advantage in itself.” – Jackson Mayanja, TMT Mining and DGSM employee, August 2016

When you thought the Mineral Industry in the Republic of Uganda couldn’t be questioned more. There is a Global Witness report on the subject. That clearly shows signs of common cronyism and National Resistance Movement (NRM) who uses their connections to get better licenses and deals. The NRM and President Museveni, together with family members are in the midst of the transactions surrounding the Mineral Industry. Especially considering also the well-known fact that Ugandan government are helping with exports from South Sudan and Democratic Republic of Congo. This been done with shaky licensee deals.

The report is spelling how Gen. Salim Selah or President Yoweri Museveni are parts of the inside the mineral trading and export from Uganda. The other NRM cronies and the brown envelopes that pays for the licenses and the insider knowledge of DGSM gives an edge. Instead of being ethical and protocol through the laws, instead it is more of the personal connections the owners of licenses has. Take a look!

Gen. Salim Selah and Ragga Dee connected with minerals:

“Senior political figures appear ultimately to call the shots. Their patronage facilitates access to the sector and allows investors, including political elites, to flaunt the law. In one example, a small group of Belgian and Ugandan businessmen, with close ties to the President, were found to be shipping out hundreds of millions of dollars’ worth of gold, apparently paying barely any taxes and failing to disclose the origins of the gold. Their exports may include gold which could be fuelling conflict in neighbouring DRC and South Sudan. In the absence of government data and evidence of rigorous supply chain checks it is not possible to tell” (…) “In one example, an Australian home loans broker with no evident experience of mining, was able to secure licences for over 6000km2 of land (more than any other company or individual Global Witness has seen) by making payments to DGSM officials, and later teamed up with pop star turned businessman, Ragga Dee, who has close ties to the president’s brother Salim Saleh” (Global Witness, P: 7, 2017).

Bwindi National Park:

“One licensee is NRM MP Elizabeth Karungi, whose story is emblematic of how well placed individuals claim to be able to use their political connections for personal gain. The woman representative for Kanungu District told Global Witness that she was able to carry out mining activities in Bwindi because the former tourist minister Maria Mutagamba was a “good good friend.” It is remarkable that the DGSM saw fit to issue her with a licence in this area despite the obvious threat to the wildlife there. In a letter to Global Witness dated January 2017, Mutagamba claimed that she did not know who Elizabeth Karungi MP was, however Karungi was on the Committee of Tourism, Trade and Industry which held meetings with the Minister during her period in office. The DGSM Commissioner told Global Witness that mining activities in national parks require the permission of the Uganda Wildlife Authority”. (Global Witness, P:10, 2017)

Kilembe National Park:

“One of these is the Tibet Hima Mining Company, which won a multi-million dollar contract to re-open the former colonial Kilembe Copper Mines on the border of Rwenzori in 2013. Two DGSM staff told Global Witness that the President instructed the government to partner with Tibet Hima. Global Witness wrote to President Museveni in December 2016 but has not received a response. As part of the deal, Tibet Hima also received two mining exploration licences that run deep into the national park and right up to the DRC border. The DGSM Commissioner told Global Witness that Tibet Hima had been awarded the concession through a competitive bidding process” (…) “As well as obtaining exploration licences inside a World Heritage site, Tibet Hima appears to have been carrying out operations at Kilembe – one of the largest mines in the country – without an Environmental Impact Assessment (EIA), which is required by law. The company produced an environmental ‘project brief’ in February 2015, but this did not cover the activities witnessed by Global Witness staff at the site in November 2015” (Global Witness, P: 11-15, 2017).

Africa Gold Refinery:

“African Gold Refinery is run by a small group of Belgian and Ugandan businessmen, including former government minister Richard Kaijuka, who are managing to ship hundreds of millions of dollars’ worth of gold out of Uganda without disclosing its origin and paying very little tax in the process. They are the owners and managers of a newly built gold refinery on the shores of Lake Edward near Entebbe airport. Remarkably, Barnabas Taremwa: brother-in-law to Salim Saleh, Museveni’s most famous brother and Uganda’s de facto number two, told Global Witness that he had helped negotiate the company’s huge tax breaks with the government (corroborated by documents seen by Global Witness) and set up supply routes for the refinery” (Global Witness, P: 27, 2017).

“When an undercover Global Witness staff member spoke to Kamuntu in November 2016, he claimed that he continued to export 10,000 tonnes of iron ore a month out of Uganda under the waiver he received from the President. He told us he ships out minerals as “samples” in order to avoid taxes. He explained that he was the only person in Uganda able to export iron ore. He also told Global Witness that he deals in minerals originating from the DRC, labelling them as Ugandan to get around regulations. Kamuntu said that he exports tantalite from the DRC, labelling it as iron ore to pay less tax. If this is true then conflict minerals from Eastern DRC could be entering the international supply chain via Kamuntu’s shipments. Perhaps most remarkable of all is the fact that Kamuntu told us that “as a local person” he had paid US$10,000 to a third party to get a meeting with the President, in order to seek the permission he needed to continue with his business. (The price for foreign investors is US$15,000, according to Kamuntu.) A letter from the President to the Mining Minister explains that the two met at a private Chamber of Mines and Petroleum event. Global Witness wrote to President Museveni and Mr Kamuntu in December 2016 but never received a response” (Global Witness, P: 42, 2017).

AGR ownership:

“Alain Goetz, who is also the CEO of the company, a Belgian national, is one of the most famous dealers of Congolese gold in recent history. During the 90s the Alain and his father Tony, who died in 2005, were reported as dominating gold exports from the Congo through their networks to Belgium and later Dubai” (…) “Mr Barnabas Taremwa, who previously worked for AGR is the brother in law of Salim Saleh, the President’s brother. AGR told Global Witness in a letter dated January 2017 that Taremwa’s sister and Salim Saleh had divorced three years ago, seemingly in an attempt to distance themselves from the General. However, Salim Saleh told Global Witness that “Barnabas Taremwa is still my brother in law and it is false and an insult to me for you to state that I divorced his sister.” (…) “Richard Henry Kaijuka is the Chairman of AGR.160 According to an article in Africa Energy in June 2011, Mr Kaijuka is “a childhood friend of President Yoweri Museveni, who fell out with the regime after he opposed a controversial constitutional amendment in 2005 that removed presidential term limits.” (Global Witness, P: 73, 2017).

Infinity Minerals:

“Ragga Dee, whose real name is Daniel Kyeyune Kazibwe, is a popstar turned businessman, famous as much for being the first musician in Uganda to own a Hummer as he is for his music. Ragga Dee does not appear on any of the company documents relating to Ellie’s companies, however while discussing his business interests in an interview with Uganda’s Observer newspaper in 2015 Ragga Dee said, “I also mine for gold under my other company, Infinity Minerals” (…) “Global Witness has identified two sales of Infinity’s rights to other investors after Ellie left Uganda. In the first instance a company called Afrisam Cement Uganda Limited paid US$75,000 for prospecting access to licence number EL1083 which was held by Infinity” (…) “The whole episode raises serious questions about the way that licences are awarded, the licence transfer process, and the accuracy of the mining cadastre. If the information on the cadastre is inaccurate or wilfully misrepresented this has serious impacts for the governance of the sector. While AfriSam appears to have received its licence through the proper channels at the DGSM questions remain about the way that Sunbird acquired its licence. In a letter dated January 2017, Salim Saleh told Global Witness that the Big Picture Corporation, a company which is part owned by his wife, is “one of the companies which duly applied for, and inherited, the expired Licences previously held by Infinity Minerals Limited, under TN 2370.” According to the Cadastre, however, this application, which was made after the licence had expired, was rejected” (Global Witness, P: 48 – 51, 2017).

Special Export:

“The latest OAG report noted that during the financial year 2015/16, the DGSM assessed royalty and awarded export permits for only 93kgs of gold worth just over US$3 million. However, reports from the Customs and Excise Department of Uganda Revenue Authority indicated that 5,316 kgs of gold had been exported with a total value of US$195 million. Accordingly, Government should have collected between US$2 million and US$9.7 million in royalties depending on the applicable rates of 1% and 5% for the imported or locally mined gold respectively” (Global Witness, P: 74, 2017).

If you didn’t think there was anything fishy in the trades, in the Mineral Ministry and the Mineral Resources Exports in Uganda. This here reports proves the amounts of gold exported combined with the gold extracted. That these numbers doesn’t add-up. This together with the NRM leadership and the closest partners in and around the President. Therefore, it is even his own family involved in the mineral industry. This reports is saying what people and rumors has been, therefore, the implications of the government, the president in the business, and also they are involved in exporting and cleaning conflict minerals for the exporters of South Sudan and Democratic Republic of Congo. This is not surprising for the ones following the situation. Peace.

Reference:

Global Witness – Under-Mined (June 2017)