The Ministry of Mining has reported an increase in fraud cases involving gold dealings and exports in Kenya
The most fraudulent cases involve Kenyan citizens and other foreign nationals mainly operating from Nairobi
The Ministry of Mining has reported an increase in fraud cases involving gold dealings and exports in Kenya.
“Persons passing with huge quantities of gold available at discounted prices commit the fraud. Their victims have been unsuspecting Kenyans and foreign nationals,” said the Ministry in a statement. The international dimension to the fraud is giving Kenya a negative and unwelcome reputation in the world of minerals and mining.
The most fraudulent cases involve Kenyan citizens and other foreign nationals mainly operating from Nairobi.
Here are six ways Kenyans are getting duped in the gold con scheme:
‘Believe me, I am licenced’: The mineral dealers are using false licenses, export permits and assay reports purportedly issued by the Ministry of Mining.
Fake certificates: Use of assay certificates issued by the Ministry of Mining where the assay contents are altered to show huge quantities of gold have been tested and grade(s) verified.
‘Imported’ : Sale of gold allegedly coming from neighboring countries or gold allegedly stored in custom’s warehouses or in transit
Fake Gold: Sale of tens or hundreds of kilogrammes of gold or gold nuggets, mainly comprising of fake gold or brass.
Gold refining services: Promotion of gold refining services within Nairobi’s upmarket estates as bait where perpetrators showcase their gold stock and from which tiny samples of genuine gold are extracted for laboratory tests.
Pay upfront: Demands of hefty upfront payments to facilitate the processing of export documentation with relevant authorities often running into millions of shillings, after which no export is done or the consignment turns out to be fake gold (mostly brass) and the conmen switch off further communication with the victims
In order to protect unsuspecting citizens and foreign nationals, members of the public are hereby advised to contact the Ministry of Mining for verification of persons claiming to be mineral dealers. The Ministry will also verify mineral dealers’ licences, mineral export permit, assay reports, laboratory reports and any other documents alleged to have been issued by the ministry
The two companies licensed to carry out mineral dealings other than gold are Modogashe Agencies Limited and Match Electricals Limited.
Contact the Ministry of Mining via Email: [email protected] or telephone: 020 272 7434 or 020 230 0190