COCO Mining Uganda Ltd says its investment in a gold mining project on Sigulu Island is under threat following alleged fraud, intimidation and fresh demands for millions of dollars by two individuals it accuses of frustrating its operations.
A Chinese investment company involved in a proposed gold mining project on Sigulu Island in Namayingo District has made a desperate appeal to President Yoweri Kaguta Museveni, seeking his intervention over what it describes as a prolonged scheme of fraud, intimidation and threats allegedly orchestrated by two Ugandan businessmen.
COCO Mining Uganda Ltd says its investment has been severely affected by a dispute involving Mr Nasasira Hilary and Mr Nahamya Oscar, whom the company accuses of misleading its representatives into paying hundreds of thousands of dollars under the promise of securing the necessary ground rights and legal documentation to facilitate its mining operations.
The company is now appealing to the President through the State House Investors Protection Unit (SHIPU), headed by Col Edith Nakalema, to investigate the allegations, protect its investment and ensure that those responsible are held accountable.
According to information provided by the company, the dispute dates back to early 2024 when COCO Mining was introduced to Nasasira and Namanya in connection with a proposed gold mining venture on Sigulu Island.
The two allegedly proceeded to incorporate HICAR Traders, through which they entered into an arrangement with the Chinese investor to facilitate the acquisition of ground rights and other legal requirements necessary for the commencement of mining activities.
Under the arrangement, the investor was reportedly asked to pay $230,000, equivalent to approximately Shs976 million, to facilitate the processing of the required documents and legal authorisations.
Trusting that the two individuals would fulfil their obligations and deliver the necessary documentation within the agreed timeframe, COCO Mining proceeded to acquire equipment and undertake substantial preparatory investments at the proposed mining site.
The company estimates that its additional expenditure on equipment, site preparation and related activities reached approximately $8 million, equivalent to Shs34 billion.
However, according to the investor, the promised documentation never materialised despite repeated assurances and prolonged engagements with the two individuals.
Nearly three years after the initial arrangement, the company says it remains without the documents it was promised, leaving its substantial investment exposed and its planned operations frustrated.
Faced with mounting losses and uncertainty, the Chinese investor eventually decided to explore alternative arrangements that would enable it to proceed with the project and minimise further financial damage. The company says it treated the approximately Shs976 million paid to the HICAR directors as a loss and sought other avenues to move forward.
Fresh $2 million demand
But just when the investor thought it had put the frustrating experience behind it, the situation allegedly took a more disturbing turn.
COCO Mining claims that Nasasira and Namanya have returned, this time allegedly demanding $2 million, approximately Shs8.49 billion, with threats that the Chinese investors would not have a good time in Uganda if they failed to pay.
The company describes the alleged demand as an attempt to extort additional money from an investor who has already committed substantial resources to the proposed mining project.
The latest developments have reportedly heightened anxiety among the company’s management and employees, who fear that the dispute could escalate into physical confrontations or further disruptions of their operations.
Moses Mukhwana, the company’s Operations Manager, says the investment has been badly affected by the repeated visits of the two individuals to the project site, allegedly accompanied by heavily armed military personnel.
According to Mukhwana, these visits have been characterised by threats and conduct that have created fear among workers and disrupted the company’s activities.
He says the company has made several attempts to seek assistance from relevant government offices and security authorities but has increasingly felt helpless because of what it describes as the influence and connections allegedly enjoyed by the individuals it accuses.
Mukhwana further claims that company representatives have received reports that influential government and military officials have been making calls to intimidate individuals and offices approached for assistance.
The company says it cannot independently establish the identities of the alleged callers or verify the claims of political and military interference, but insists that the reports have deepened its concerns about obtaining a fair hearing.
“We have run out of patience. We are worried. We hear everywhere we go that big people have an interest in the matter. We don’t know whom to run to,” Mukhwana says.
Alleged attempt to arrest investor
The company also raises concerns over what it describes as an attempt to use security agencies to arrest or intimidate its investors into paying the disputed $2 million.
According to the account provided by COCO Mining, there were efforts to arrest the investors in circumstances the company believes were intended to force them to surrender the money under duress.
However, the company’s management says security personnel in Namayingo intervened and prevented the alleged attempt, insisting on the observance of proper legal procedures.
The allegations raise serious questions about the use of security personnel in private commercial disputes, particularly where foreign investors claim that threats and intimidation are being used to obtain money.
The company maintains that any disagreements arising from its business arrangements should be resolved through lawful procedures rather than threats, coercion or the deployment of armed personnel.
RDC acknowledges investor harassment
The Namayingo Resident District Commissioner, Emmy Mitala, has acknowledged awareness of the concerns raised by the investor.
In a telephone conversation with this publication, Mitala said the authorities were aware of the alleged harassment and were doing what they could to protect the investors and their business interests.
“We are doing everything we can to protect them and their investment as per the President’s directive on protection of investors in Uganda,” Mitala said.
The RDC’s assurance comes against the backdrop of growing concerns about the security of investments in the district and the potential damage that disputes involving alleged intimidation could cause to Uganda’s investment reputation.
Museveni’s fight against those who exploit investors
President Museveni has repeatedly warned against corruption and the exploitation of investors, describing such practices as major obstacles to Uganda’s economic transformation.
In his December 2023 address while launching the Electronic Investors Protection Portal, the President specifically identified bribery and the solicitation of money from investors as forms of corruption that must be eliminated.
He urged both Ugandan and foreign investors not to pay bribes to access government services and directed them to report individuals demanding illegal payments to the State House Anti-Corruption Unit and Col Nakalema’s office.
Museveni also explained that he established the State House Investors Protection Unit to provide specialised attention to investment-related complaints and monitor how government institutions handle investors.
The President emphasised that Col Nakalema’s role was not to act as a judge in private disputes but to examine how government officials responsible for facilitating investments were performing their duties and address bureaucratic bottlenecks.
His administration subsequently introduced the Electronic Investors Protection Portal to provide investors with a direct channel through which they can report corruption, delays and other investment-related complaints.
The State House Investors Protection Unit was established in May 2023, with Col Nakalema appointed to lead it. Its mandate includes coordinating investigations into investor complaints, working with relevant government agencies and protecting both local and foreign investors from corrupt practices and unnecessary bureaucratic obstacles.
The Unit’s official website identifies the Uganda Investment Authority, Uganda Registration Services Bureau, Uganda Revenue Authority and other government institutions among its key partners.
The Unit has also established an online complaints mechanism intended to make it easier for investors to seek intervention without relying on intermediaries.
A test for Uganda’s investment protection system
For COCO Mining, the appeal to Museveni is increasingly being presented as a last resort after what the company describes as unsuccessful attempts to obtain justice through the ordinary channels.
The investor wants Col Nakalema to investigate the original transaction involving HICAR traders, establish what happened to the approximately Shs976 million allegedly paid to facilitate the mining documentation and investigate the circumstances surrounding the subsequent demand for $2 million.
It is also asking the Unit to establish whether any public officials or security personnel have improperly involved themselves in the dispute and whether their conduct has compromised the company’s ability to operate freely and safely.
The company further wants protection for its employees, management and investment against alleged threats and intimidation.
The implications extend beyond the immediate dispute. Uganda has consistently sought to attract foreign capital into its mining, manufacturing, infrastructure and other productive sectors. Investors who commit millions of dollars expect predictable regulations, transparent procedures and protection against unlawful interference.
If the allegations raised by COCO Mining are substantiated, they would represent a serious test of the government’s commitment to protecting investors and ensuring that private commercial disagreements are not settled through intimidation or the abuse of public authority.
For now, the Chinese investor says it is worried about its safety, its investment and the uncertainty surrounding its operations in Namayingo.
Its appeal to President Museveni and Col Nakalema is therefore not simply about recovering money allegedly lost in a failed business arrangement. It is also about securing the right to invest and operate in Uganda without fear.
The company is asking the President to ensure that the promises of investor protection translate into practical action on the ground.
The allegations against Nasasira Hilary and Nahamya Oscar, including the alleged financial misconduct, threats and demand for $2 million, require independent investigation. Their responses, as well as any explanations from the relevant security authorities, are important to establishing the full facts of the dispute.
The post BLOOD AND IRON! Chinese Investor Scummed in Namayingo Multi-Billion Gold Fraud Appeals to Museveni, Col Nakalema as Fraudsters Return For More appeared first on Watchdog Uganda.