Gold Rush Goes Rogue: Minister Ruth Nankabirwa Finally Evades Eng. Vincent Kedi To Revoke Evergrande Licence Over Illicit Gold Operations But Again…

Special Report: In a saga that has lately rocked the Ministry of Energy to its core, the intricate web of illicit gold mining and exportation continues to unravel, implicating some of the highest-ranking officials in the sector. At the heart of this controversy is Engineer Vincent Kedi, a man who vehemently denies any wrongdoing!

He is pointing fingers instead at the Uganda Revenue Authority (URA) for failing to exercise their duties. His defense? That Evergrande Resources has been shipping soil samples, not gold concentrates, a claim that has raised more than a few eyebrows.

But as our investigative efforts delve deeper, it’s becoming increasingly clear that this operation is anything, but straightforward. In response to a series of explosive reports on the shady dealings of Evergrande Resources, the Ministry of Energy and Mineral Development took a drastic action. A letter dated July 30th saw the immediate revocation of the company’s export license, leaving trucks filled with suspected gold concentrates stranded at the border, awaiting clearance.

Yet, despite this setback, Eng. Kedi remains undeterred. Sources close to him reveal that he assured his partners how the exports would eventually resume, boasting of his influence as the principal licensing officer and chairman of the contracts committee. His words have left many investors in the mineral sector bewildered, as they are faced with a stark choice – comply with his illicit directives or adhere to the law.

Meanwhile, in the remote district of Amudat, where Evergrande’s operations are based, the Chinese company has been accused of misleading local communities with promises of land for small-scale mining. Desperate residents, clinging to the hope of a livelihood, have been left in limbo, as Eng. Kedi allegedly advises them to seek their fortune elsewhere, supposedly in the neighboring Nakapiripirit. But one thing is for sure, the gold may glitter, but the truth behind it is far murkier.

The activities of loading concentrates in the name of soils goes on in Amudat

The Story In Detail

Kedi the man: He needs no introduction. In our previous investigative reports, we laid bare Uganda’s largest illicit gold mining operation, masterfully orchestrated by none other than Engineer Vincent Kedi—the man at the helm of the licensing body in the Ministry of Energy and Mineral Development.

Evergrande Resources Limited, a Chinese-owned company, was initially granted exploration rights under EL00200, with the mandate to explore for gold and base metals, and determining their economic value for the nation. However, under Kedi’s influence, the company quickly shifted from exploration to operating Uganda’s largest illegal gold mining scheme. Kedi, feared as President Yoweri Kaguta Museveni’s “blue-eyed boy,” is said to have used his connections and power to shield the operation from scrutiny.

The Loud Cries in Amudat

Since 2021, the residents of Amudat District in northern Uganda have borne the brunt of Evergrande’s illegal operations. Locals recount how the Chinese operators, under Kedi’s watch, bought alcohol for the people and later tricked them into signing documents that effectively handed over their land. The consequences have been devastating – not only have they lost their land, but the mining operations have also heavily polluted local rivers, cutting off a vital source of clean water.

The cries for help have been loud and clear, directed at local government officials, NGOs, police, and political leaders, but all have fallen on deaf ears—muffled by the deep pockets of Evergrande, who have become adept at silencing any opposition to their illegal ventures.

A former worker revealed that in the early days of the operation in 2021, the Chinese concealed their activities, conducting most of the processing at night. They produced an average of 5 kilograms of gold per week. However, emboldened by Kedi’s support, the company soon began operating around the clock – day and night.

The Evolution of Evergrande Resources Co. Ltd

Incorporated on July 7th, 2020, with three shareholders—Okello Rogers, Lu Yang, and Noel Kagaba, Evergrande Resources allegedly secured its initial investment capital of USD2m. Kedi, leveraging his position, convinced the Chinese nationals of a lucrative investment opportunity, only to funnel the resources to his proxy, Okello Rogers, and thus began the illicit mining of gold.

To further obscure their identity, a resolution dated February 8th, 2023, saw all shares of Evergrande transferred to three companies. They are Jingang Investments Company Ltd, Wanxing Gold Jewellery Company Ltd, and OksFortune Company Ltd. Notably, Okello Rogers emerged as the major shareholder in these companies, automatically holding shares in trust for Kedi.

One Chinese shareholder, who had initially bought into Evergrande, reportedly wanted to pull out and feared renewing the exploration license. But Kedi reassured him, reminding him of his role as the final authority in Uganda’s mining sector, answerable only to the President.

The above gives credence to allegations that Kedi operates beyond the oversight of his female immediate superiors, including the commissioner Agness Alaba, the Permanent Secretary Irene Batebe, the line State Minister Phiona Nyamutooro and even the senior Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa.

The Tax Evasion

Since 2021, the amount of gold exported by Evergrande has raised alarm bells not only among whistleblowers but also within the state, which is grappling with significant foreign debt. Kedi is believed to have masterminded one of Uganda’s largest illegal, untaxed gold export operations. In the early stages of Evergrande’s illegal operations, the company secretly exported untaxed gold with Kedi’s help, producing an estimated 20 kilograms per month.

By 2022, when production increased to 25-30 kilograms per week, Kedi and his partners allegedly opened Reliable Refinery Ltd. to facilitate even larger exports of locally mined gold. However, realizing that the export of gold through the refinery could expose their illegal activities—since they did not have a mining lease, they shifted tactics, halting gold extraction and instead exporting gold concentrates.

Kedi reportedly used his position to expedite the issuance of export permits under the guise of exporting soil samples for analysis—a common practice for exploration companies. True to his word, Evergrande swiftly obtained permission to export these so-called soil samples, creating the illusion that the company was designing state-of-the-art equipment for future mining activities. Sad as it so sounds, tons of gold concentrate, equivalent to approximately 100 kilograms of refined gold, left the country undetected.

Gross Abuse of Office

The impunity displayed by Eng. Kedi is staggering. Investors we spoke to describe him as the embodiment of corruption and abuse of office within the Ministry. We are obliged to believe them, for he also tried us! So fearless he is, he didn`t hesitate to try buying into `the guns-to-fire-not for hire` team! His influence extends from Amudat to Busia, Ibanda, Ntungamo, Kabale, and Buhweju, where his name is synonymous with illegal mining—not just of gold, but also iron ore, quartz, and lithium.

In cases where he cannot wrest licenses from investors, he skillfully solicits shares in their companies in exchange for timely services and protection from mining inspectors. Despite several investigations by state agencies, Kedi has managed to avoid leaving any traceable evidence of his involvement.

In novermber 2023, Kedi is captured at Grand Imperial forex beareau, waiting as his Evergrande partners loaded cash in his waiting car (Courtesy Photos)

His impunity is so profound that he allegedly solicits bribes from investors under the pretense of collecting money on behalf of his female bosses—Minister Ruth Nankabirwa, Permanent Secretary Irene Pauline Batebe Okello, and his immediate boss, Alaba Agnes. Close associates reveal that Kedi’s mobile money accounts are frequently flooded with “over the limit” messages, a testament to the extent of his corruption.

Our investigative team has gathered substantial evidence, including photos of Kedi receiving cash-filled packages in hotels, restaurants, and even in his office. One investigator remarked; “I love how the Chinese always take a pic, just in case.” We are in the final stages of compiling a comprehensive list of companies benefiting from Kedi’s corrupt schemes, as well as entities he has solicited bribes from in exchange for exploration or mining rights.

Kedi’s greed has caused significant financial losses to investors, some of whom have been driven out of the sector entirely. His actions undermine the very principles he helped establish, such as the “first-come, first-served” and competitive bidding processes, which were designed to ensure the growth of the sub-sector. The country eagerly awaits the outcome of the ongoing state investigations, hoping that justice will finally be served.

Author Profile

Pius Kiyimba: Kiyimba Pius is a senior editor at The Investigator. He joined in 2018. His journalism background includes writing for both business and human rights. Connect with him by email: [email protected]