Isaac Kyagaba, a partner at multinational law firm Dentons, is under investigation by the Uganda Police Mineral Protection Unit for his alleged involvement in a $4.9 million (Shs17 billion) gold scam.
The scandal has drawn international attention, with foreign investors accusing Kyagaba and two associates of defrauding them in high-stakes mineral deals.
The complaint, filed by Fahad Kigongo Semugenze on behalf of PT HRTC Exploration and Production (a company based in Indonesia and the United Arab Emirates), alleges that Kyagaba and his co-accused orchestrated fraudulent transactions involving fake documents and empty promises.
How the Alleged Scam Unfolded
According to police records (SD REF: 32/25/02/2025 and SD REF: 31/24/02/2025), the scam began in May 2024 when PT HRTC entered into a deal with OYZTAR Minerals Company Ltd to purchase 200 kilograms of gold.
The company paid 3 million (Shs 11 billion) on May 13, 2024, followed by an additional 3 million (Shs 11 billion) on May 13, 2024, followed by an additional 1.4 million (Shs 5 billion) on May 29, 2024, for export clearance.
Despite the payments, the gold was never delivered.
In a separate transaction, PT HRTC sought to purchase 510 kilograms of gold from a Burundian supplier identified as Samuel and Hakim.
Kyagaba was engaged to oversee due diligence and transaction execution.
The investors transferred $500,000 through Kyagaba’s account, but the deal collapsed after they were presented with a fraudulent Uganda Revenue Authority customs declaration (Ref: T 70287 07 23).
Investors Left Empty-Handed and Threatened
The investors claim they have neither received the gold nor a refund. Instead, they allege they were met with threats when attempting to recover their money.
“We trusted Kyagaba as a lawyer to ensure the deal was legitimate. Instead, we were defrauded and intimidated,” said Fahad Kigongo Semugenze.
The case is now before a criminal court, with authorities working to recover the lost funds. Efforts to reach Kyagaba and his co-accused for comment were unsuccessful by press time.
A Blow to Uganda’s Mineral Sector Reputation
This scandal has raised serious concerns about the integrity of Uganda’s mineral trade and the role of legal professionals in such transactions.
As investigations continue, the case serves as a stark reminder of the risks involved in high-value mineral deals and the need for stricter oversight.
