Museveni’s gold dealer in trouble

It is unclear whether or how Asubo’s case will proceed because up to this point Goetz has allegedly refused to comply with orders and demands from government agencies and prompted allegations that his impunity results from his belief that he is protected because they are politically connected.

But that influence peddling could end soon according to information The Independent is privy to. For example, although Goetz’s company board is chaired by Richard Kaijuka, the former minister of Energy who is now an advisor to President Museveni on Mineral Value Addition and Museveni’s brother-in-law, one Barnabas Taremwa, was involved in setting up AGR, rifts have since emerged.

“If it is true, I am extremely shocked and surprised because as chairman, I have always insisted on strict compliance, transparency and accountability,” said Kaijuka when contacted about the latest charges against AGR.

“I need to point out, however, that I am not up to date with current and immediate past operations of AGR since I was sick and admitted in hospital in the U.S. from May to end of August. What surprised me was the unpleasant communication from AGR I received while I was sick.”

Apparently, AGR informed him through an email that African Gold Refinery Limited will no longer require you as a Board Chairman as of 1st August 2017.

Interestingly, Kaijuka had been cautioning Goetz about malpractices.

“You will also recall that as AGR chair I have been urging you to hold regular Board meetings but in vain to ensure that AGR conforms to good corporate governance practices of accountability, transparency and responsible sourcing of gold from the region,” reads part of Kaijuka’s response, “Are you dismissing me so that you can keep a blind eye to all these issues?”

Apart from the fall out with Kaijuka, AGR is being sued for reneging on agreements by Taremwa who is connected to the Museveni because his sister, Jovia Saleh is married to the President’s brother, Gen Salim Saleh.

In October 2016, shortly after AGR ran into troubles with the IGG, Taremwa filed a court case against AGR because he had been cut out of the deal after negotiating a major tax break and supply for the refinery.

Taremwa also told Global Witness that some of the gold processed in the refinery comes from the neighboring DRC and South Sudan. Activists say there is a real risk that it could be funding conflict and human rights violations.

In yet another twist , the Commissioner of the Directorate of Geological Survey and Mining (DGSM); Edwards Katto, in a letter dated January 2017, told the global transparency body, Global Witness, that the DGSM “has not issued any export permits” to AGR. The means any gold exports by AGR are illegal.

But while DGSM recorded gold production and export of only 93kgs in 2015/16, reports from the Uganda Revenue Authority indicate that during the same period 5,316Kgs of gold was exported with a total value of US$195 million– the majority of which was recorded by AGR.

“This discrepancy in official government figures suggests import and production under-reporting on an epic scale leading to lost revenues, and suspected smuggling,” Global Witness noted, “Put simply while we can now see how much gold is leaving the country its origin and the conditions under which it was mined and traded are still unclear.”

Global Witness also revealed that AGR had processed and exported over US$200 million worth of gold from Uganda, paying only half a million dollars in tax and failing to publish information about where it came from

Goetz’s tainted past

Other sources say, however, that Goetz is really not bothered by the circus around him because he has been dealing in murky gold trade for a long time and knows its twists and turns better than his pursuers.

The FIA has existed only since 2013 to fight money laundering and terrorism financing and its boss, Sydney Asubo is a law and banking professional who is new in fighting financial crime.

Goetz, meanwhile, is the son of Tony Goetz who was a famous Belgian dealer in Congolese gold as far back as the 1990s when Ugandan troops invaded the DR Congo and allegedly plundered its mineral resources. Together, the Goetz’s reportedly dominated gold exports from the Congo through their networks in Belgium and later Dubai.

Based on this background, it is not clear why Museveni is schmoozing with a person with a tainted past that he probably knows about.

AGR, which is owned 100% by Goetz has operated a $ 20 million gold refining complex located in Entebbe since 2014 but was officially launched by Museveni in February this year.