Isaac Kyagaba Implicated in UGX 18 Billion Gold Scam

What has happened to Isaac Kyagaba?

The Uganda Police Mineral Protection Unit has launched an investigation into a $4.9 million (UGX 18.62 billion) gold scam that has left foreign investors counting heavy losses. The fraudulent scheme, allegedly masterminded by Ugandan and Burundian gold dealers, has drawn attention to a prominent city lawyer, Isaac Kyagaba, and OYZTAR MINERALS CO. LTD, a Ugandan-based company at the center of the scandal.

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The Deceptive Gold Transaction

The case came to light after PT HRTC Exploration and Production, a company registered in Indonesia and the United Arab Emirates (UAE), filed a complaint with the Mineral Police. The company had entered into an agreement to purchase 200 kilograms of gold from OYZTAR MINERALS CO. LTD.

The deal commenced on May 8, 2024, when a pro-forma invoice (No. 1887) was issued. Shortly after, on May 13, PT HRTC transferred $3 million to an account at Stanbic Bank Uganda. Later, an additional invoice (No. AR05/285) was issued, requiring another $1.4 million for export clearance fees. By May 29, the investors had completed the $4.4 million payment. However, the gold they were promised never materialized.

Who is Isaac Kyagaba?

Isaac Kyagaba is a Ugandan lawyer known for his association with the multinational law firm Dentons. With a background in legal consultancy, he has been involved in various business transactions, particularly in corporate and commercial law. His role in high-profile deals has positioned him as a notable figure within Uganda’s legal and business circles. However, his recent implication in the $4.9 million gold scam has raised serious concerns about his professional conduct, as authorities investigate his alleged involvement in the fraudulent transaction.

What did Isaac Kyagaba do?

A side from this transaction, PT HRTC had also engaged in a separate deal to acquire 510 kilograms of gold from Burundi. To safeguard their investment, the company enlisted Isaac Kyagaba, a lawyer affiliated with the multinational law firm Dentons, to oversee the process.

Despite their precautions, the investors transferred $500,000 through Kyagaba’s account, but the transaction fell apart under unclear circumstances. Kyagaba later presented a Uganda Revenue Authority (URA) customs declaration (Ref: T 70287 07 23), which was later flagged as dubious.

Investors Demand Justice

In response to the financial losses, PT HRTC’s representative, Fahad Kigongo Semugenze, officially reported the case to Ugandan authorities, filing complaints under SD REF: 32/25/02/2025 and SD REF: 31/24/02/2025. The complaint implicates OYZTAR MINERALS CO. LTD and its directors, as well as intermediaries identified as Samuel and Hakim. It also calls for the arrest of lawyer Isaac Kyagaba.

Kigongo further revealed that attempts to reclaim the funds or secure the gold have been met with threats from the implicated parties.

Why is the stating taking this case against Isaac Kyagaba so seriously?

The case is now before the Criminal Court, with legal proceedings underway to recover the lost funds and bring those responsible to justice. The Uganda Police Force is under increasing pressure to act swiftly, as such fraudulent schemes continue to damage Uganda’s reputation in the international gold trade.

Efforts to obtain a comment from Kyagaba were unsuccessful at the time of publication. Meanwhile, industry stakeholders are urging authorities to tighten regulations and enforce stricter oversight to curb fraudulent activities within Uganda’s gold sector.

This latest scandal underscores the persistent risks faced by investors in Uganda’s gold trade, where weak regulatory frameworks have allowed fraudulent schemes to flourish. Authorities are now under scrutiny to ensure those involved are held accountable.