Former Kotido District Official in UGX 2 Billion Gold Scam

Kotido, Uganda — April 20, 2025-A financial scandal involving an alleged UGX 2 billion gold fraud has sent shockwaves through Uganda’s mining sector, implicating Otim Denis Diaz, an Assistant Secretary at Gulu University. The case, now under state inquiry 001/2025 in Kidepo Region, has heightened concerns about investor protection, financial accountability, and fraudulent dealings in Uganda’s extractive industry.

At the heart of the scandal is Dutch investor Gautham, who partnered with Otim through KATIPUTH, a business entity intended to support artisanal miners in Kotido District. Gautham’s investment was not only commercial—it was a social and economic empowerment initiative, designed to improve local livelihoods through ethical gold mining. The goal was to transition small-scale miners into formalized, sustainable operations, giving them access to proper equipment, training, and fair market opportunities.

The venture sought to elevate communities by creating stable employment, fostering economic independence, and reducing reliance on exploitative middlemen. However, instead of fostering progress, the project collapsed into financial deception, exposing systemic fraud and misappropriation of funds.

A Partnership Built on False Promises

Otim allegedly positioned himself as an influential figure within Uganda’s mining sector, assuring Gautham of exclusive mining rights and government clearance for gold extraction and export.

Under these assurances, Gautham shipped two tractors and advanced gold detectors, believing he was establishing a legitimate operation with the potential to transform Kotido’s economy. Additionally, he transferred UGX 2 billion, expecting the funds to formalize gold mining activities and introduce sustainable extraction methods.

Beyond the financial investment, Gautham envisioned empowering local miners through technology-driven solutions and ethical business practices that would integrate them into global supply chains. However, investigators uncovered fraudulent documents, misdirected funds, and non-existent mining licenses linked to Otim. What should have been a groundbreaking initiative for artisanal miners turned into a calculated financial scam.

“Otim manipulated our agreement, forging documents and diverting funds to drain our company’s resources,” Gautham stated in his official complaint.

Seized Assets as Authorities Trace Stolen Funds

Law enforcement officials impounded one tractor in Gulu, where Otim was allegedly attempting to sell it. The second tractor was recovered in Kotido before being transferred to Kotido Central Police Station (CPS) for forensic analysis.

A senior investigator from CID Kidepo confirmed,
“Recovering these stolen assets is a breakthrough. Our priority now is tracking missing funds, verifying fraudulent documents, and determining whether additional individuals were involved.”

Authorities are also reviewing KATIPUTH’s financial records, linking suspicious cash withdrawals and unauthorized transactions to Otim’s personal accounts—deepening concerns over money laundering and financial misconduct.

KATIPUTH: A Business Front for Fraud?

While KATIPUTH was legally registered, investigators suspect that it was used as a cover for fraudulent transactions, allowing Otim to misuse investor funds under the guise of legitimate business operations.

Further evidence suggests that Otim engaged in financial irregularities before his tenure at Gulu University, pointing to a history of deceptive practices.

Legal experts warn that cases like this damage investor confidence and create significant obstacles for Uganda’s efforts to attract foreign investment in mining.

Pressure Mounts on Gulu University

Despite the scandal’s growing visibility, Gulu University has yet to issue an official statement. Otim, who previously served as Sub County Chief of Loletio in Kotido District, has remained silent, avoiding public scrutiny.

A senior university official, speaking anonymously, commented,
“Otim’s financial dealings raised concerns before, but now—under a state inquiry—the university must address this matter transparently.”

Meanwhile, faculty members and students at Gulu University are demanding accountability, with some calling for an internal audit to examine whether university resources were involved.

Legal Implications: Fraud Charges and Consequences

Otim now faces criminal charges, including fraud, forgery, financial misrepresentation, and misappropriation of investor funds.

Legal analysts suggest that, if convicted, he could face long-term imprisonment, asset forfeiture, and restitution payments to Gouatham.

“This case will test Uganda’s ability to protect investors and enforce business ethics. A strong legal response is necessary to restore trust in Uganda’s business environment,” stated Barbra Namazzi, a financial crime lawyer in Kampala.

Investor Fallout: Uganda’s Business Reputation at Risk

The scandal has heightened concerns among foreign investors, particularly those considering investments in Uganda’s mining and agriculture sectors.

Uganda has actively worked to rebrand its mining industry, promoting responsible extraction and transparent investment regulations. However, high-profile fraud cases undermine investor confidence, making Uganda appear riskier for ethical business engagement.

For Gautham, the financial loss goes beyond money—it represents a betrayal of trust.
“I believed in Uganda’s potential for ethical investment. Now, all I have left is deception and loss,” he lamented.

Industry analysts warn that cases like Otim’s could deter foreign investors, causing mining firms to reconsider their engagement with Ugandan enterprises.

Will Uganda Deliver Justice? Inquiry Gains Momentum

With state inquiry 001/2025 advancing, authorities are actively tracing missing funds, interrogating suspects, and preparing prosecution reports, signaling that justice may soon be within reach—if legal institutions act decisively.

The government’s response to this high-profile fraud case will be closely watched both locally and internationally. If Ugandan authorities fail to hold perpetrators accountable, the country risks losing hard-earned investor trust and further destabilizing business confidence.

As the inquiry deepens, Gautham remains hopeful that justice will be served—not just for himself, but for the artisanal miners who deserved ethical investment opportunities.

“This is more than my financial loss. It’s about the future of Uganda’s mining communities, who deserve honesty, opportunity, and protection from exploitation,” he emphasized.

Final Thoughts: A Lesson for Uganda’s Mining Sector

Beyond the legal battles, this scandal highlights a critical need for stricter investor protections, regulatory oversight, and enhanced transparency in Uganda’s mining industry.

For artisanal miners, the dream of financial inclusion through ethical business partnerships remains uncertain. However, if Uganda strengthens its legal frameworks and enforcement mechanisms, cases like this might one day become a thing of the past.

The question now remains: Will Uganda seize this moment to reinforce its commitment to fair business practices, or will this case be another forgotten chapter in the country’s investment landscape?