Ugandan Mining Firm Denies Scam Allegations

Blessed Riverstones Uganda Limited, a Kampala-based mineral trading company, has dismissed recent media reports labeling it as a gold scam business.

Jailes Bahati Mumbere, the company’s representative, vehemently denied the allegations, describing them as malicious and unfounded.

“The government does not anywhere deal with scammers,” Mumbere said. 

“Every year, the government licenses mineral dealers, goldsmith, and those who will be doing core minerals. We go through a serious process of scrutiny, which goes as far as tax compliance.”

He noted that the company has been licensed for four years, attributing this to the company’s commitment to transparency and legitimacy.

“We have had instances where people have even gone ahead to block our products that we export in Dubai, so that they can create a complicated situation for us,” Mumbere said. “We have also had issues of impersonation, where individuals have masqueraded as Blessed Riverstones Uganda Limited employees.”

He revealed that the company has taken steps to protect its reputation, including removing its licenses from public view to prevent exploitation. 

Mumbere emphasized the company’s commitment to transparency and legitimacy, highlighting its membership with the National Chamber of Commerce among others.

The Ministry of Energy and Mineral Development recently said it takes allegations of wrongdoing in the mining sector seriously and would investigate any claims of misconduct.

Uganda’s export earnings have surged in recent past, driven by a significant increase in gold exports. 

Gold exports accounted for a substantial portion of the earnings, with 46,263 kilograms of gold valued at $2.98 billion exported in the year to June 2024.

However, the gold industry faces challenges, including unpaid taxes. Only 9.74% of assessed taxes, amounting to Shs3.39 billion, have been paid, leaving a shortfall of Shs31.38 billion.

The government is working to address these challenges, with a focus on gold processing to boost exports and tap into the country’s estimated $620 billion mineral wealth.