October 24, 2023
KAMPALA, Uganda, | The State House Anti-Corruption Unit and the Uganda Police have arraigned a Kampala based lawyer Mkwe Eric Geoffrey, also known as Okello, before the KCCA Chief Magistrates Court in connection with a complex gold scam that hid headlines last week. Mkwe is among those accused of conspiring to defraud a Korean investor of $600,000 (approximately UGX 2.2 billion) in a fraudulent gold scheme. He, along with previously charged individuals, has been remanded until November 6, 2023.
The case took a significant turn on October 20, when David Balondemu, a prominent Kampala lawyer and Chairperson of the Kampala District Land Board, was also remanded to Luzira prison. Balondemu, aged 52, faced charges related to obtaining money from a Korean investor through false pretenses. This arrest followed investigations by the State House Anti-Corruption Unit and the police.
The state alleges that Mkwe, among others, defrauded Mr. Hyun Uk Kim of $600,000 in a 53kg gold scam. Mkwe’s remand extends until November 6, 2023, coinciding with Balondemu’s next court appearance.
According to the charge sheet, Balondemu, Mkwe, Mugisha, Maviri, and others allegedly conspired between March and November 2021 at the offices of M/S Balondemu & Co. Advocates in Kampala City. They are accused of obtaining $600,000 from Kim, falsely representing that they were selling him gold, which they did not possess.
Court documents reveal that Mr. Kim was initially contacted by Mugisha, who claimed to have knowledge of the gold seller. Mr. Kim was then introduced to the seller’s alleged son and interpreter, who picked him up from the airport. A Memorandum of Understanding was signed, with Mr. Kim requiring to pay a deposit of $208,000 (about UGX 700 million), which he handed over to the law firm.
However, the situation took a turn when Mr. Kim was asked to pay an additional $62,000 (over UGX 200 million) for Cargo Flight Insurance instead of the gold being transported, as initially agreed. During these transactions at the law firm, it was discovered that Maviri was in the company of the gold seller, and a search of his home led to the recovery of six kilograms of suspected gold nuggets.
The accused parties purportedly met at Imperial Residence Apartment, where Mr. Kim was shown gold nuggets, and later, they visited M/S NSB Advocates and Legal Consultants to finalize the deal.
