By Richard Onapatum
Kotido: Uganda Police, with sister security agencies, are investigating circumstances surrounding an alleged UGX 2 billion gold scam that has rattled the country’s mining sector.
At the centre of the scandal is Mr. Otim Denis Diaz, an Assistant Secretary at Gulu University and former Sub County Chief of Loletio in Kotido District, who stands accused of defrauding a Dutch investor under the guise of a mining partnership.
The investigation, registered under state inquiry 001/2025 in Kidepo Region, triggers concern over financial accountability and investor protection within Uganda’s extractive industry.
According to Primarily investigations, Dutch investor Gautham partnered with Otim through a company called Katiputh, which was presented as a platform to support artisanal gold miners in Kotido.
The venture was intended to be socially transformative, aiming to uplift local communities through responsible mining, the introduction of modern equipment, and access to global markets.
Gautham’s investment, estimated at UGX 2 billion, included the shipment of two tractors and gold-detecting technology, which he believed would formalise and scale up ethical gold extraction.
However, the project quickly collapsed amid allegations of fraud, forgery, and misappropriation of funds.
It is alleged that Otim misrepresented his access to mining rights and government permits, assuring Gautham of full legal clearance and profit potential.
Documents allegedly forged by Otim gave the illusion of legitimate mining licenses, while company finances began to show signs of manipulation and misuse, with funds meant for operational expansion reportedly diverted into personal accounts.
Alleged Theft
According to the investor, one of the tractors was intercepted in Gulu, where Otim was allegedly preparing it for sale. The other was seized in Kotido and transported to the Central Police Station for forensic examination.
“I came here with a vision to help communities grow through ethical investment. Instead, I was deceived, my equipment was hijacked, and my funds were siphoned away,” he said.
Senior investigators confirmed that both tractors were part of the original investment and are now being held as evidence.
In a related twist, UG Exclusive has learnt that authorities are also poring over Katiputh’s financial records to assess unauthorised withdrawals and suspicious transactions.
We’ve further unearthed that although Katiputh was formally registered, investigators believe it served as a front for illicit financial dealings. Early findings suggest that Otim may have had a history of irregular financial conduct even before his appointment at Gulu University.
Legal experts say the charges against Otim include fraud, forgery, misrepresentation, and embezzlement.
Barbra Namazzi, a Kampala-based financial crimes lawyer, said the case is a litmus test for Uganda’s credibility as an investment destination. “These are serious allegations and could result in heavy penalties if proven in court,” she said.
“The integrity of our institutions is on trial here. How this case is handled will either restore or destroy trust among ethical investors,” she added.
The case has already caught the attention of local and international investors, many of whom now question the reliability of investment safeguards in Uganda.
