‘GIVE ME 50% OR CLOSE!’ — URA OFFICIAL SHARIFA NAKALEMA ACCUSED: Chinese Investors Claim URA Enforcement Followed Refusal To Make Official A Partner In Multibillion-Shilling Trade

A Chinese-backed import and export company based in Kabusu, Kampala, has accused a Uganda Revenue Authority (URA) intelligence official of using her position to interfere with its operations and ultimately push the multibillion-shilling business out of the Groupage importation trade.

The Investigator has established that Gold Medal, a company that has for years specialised in importing garments and other merchandise from China, has been unable to operate this year following enforcement action by URA officials.

The company now claims that its troubles began after a dispute with one of its clients escalated into a confrontation involving Sharifa Nakalema, a URA official who works in intelligence collection.

Gold Medal officials allege that Nakalema subsequently demanded a stake in the company from its Chinese investors and threatened consequences when the proposal was rejected.

Nakalema, however, declined to respond to the allegations when contacted by The Investigator, saying she was too busy to discuss the matter.

The Groupage Business

Gold Medal’s business model revolves largely around Groupage imports, a system in which goods belonging to several small-scale traders are consolidated into shipments from China before being transported, cleared and distributed to individual clients in Uganda.

According to Ruth, a director at Gold Medal, the company charges its customers a service fee for facilitating the importation and clearance of their merchandise.

She says the business had operated normally until one of its consignments was delayed last year.

One of the affected clients, according to Ruth, had goods valued at about Shs20 million in the delayed shipment. The client complained about the delay and subsequently demanded Shs30 million from Gold Medal as compensation, in addition to taking possession of her merchandise.

Ruth says the company apologised for the delay and attempted to resolve the dispute amicably.

“Gold Medal offered to pay Shs12 million and also have her take her goods without paying,” Ruth said, explaining that the company was prepared to absorb part of the loss to settle the matter. The client allegedly rejected the offer and insisted on the Shs30 million compensation.

Summoned to URA

The dispute took a dramatic turn when Ruth was summoned to URA offices. She says she was surprised to find the complainant already at the URA offices with Nakalema.

According to Ruth, she was detained at Nakalema’s office until about 3am before being taken to Jinja Road Police Station. She claims police at Jinja Road declined to admit her and she was instead taken to Kira Road Police Station.

“I was detained at Kira Road without any case or file for about three days when my people came for me,” she said. The allegations could not independently be verified by The Investigator, and no police or court documents have been presented to this publication confirming the circumstances of the detention.

The dispute was eventually resolved financially, with Gold Medal agreeing to pay the client Shs30 million, according to Ruth. But, she says, that settlement did not end the company’s problems.

The Café Javas Meeting

Ruth claims that after the dispute was settled, Nakalema demanded a meeting with Gold Medal’s Chinese owners.

The meeting was reportedly arranged by Dr Hamza Sebunya, the husband of musician Rema Namakula, and took place at Café Javas in Lugogo.

Ruth says she attended the meeting and that she has recordings of the discussions.

According to her account, Nakalema told the Chinese investors that if they wanted Gold Medal to continue operating in the Groupage importation business, they had to make her a business partner.

“She made it clear before my bosses that if they want to remain in the business of Groupage importation, they have to offer her shares in the company,” Ruth alleged. She claims the demand was for a 50 percent stake in Gold Medal.

The Chinese investors allegedly rejected the proposal. Nakalema is also accused of demanding that Ruth be removed as the company’s resident director.

Faced with the demand for shares, the Chinese investors allegedly proposed an alternative arrangement under which Nakalema would receive Shs5 million for every container cleared.

Ruth says the proposal was rejected and the discussions collapsed.

The Investigator could not independently authenticate the alleged recordings or verify the details of the meeting with the other participants.

Alleged Payments

Ruth further alleges that despite the disagreement over the proposed business arrangement, Nakalema later received more than Shs80 million from the Chinese investors in connection with the clearance of some containers.

She claims Gold Medal has records showing the amounts allegedly paid and the accounts through which the money was transferred.

According to Ruth, some of the payments were allegedly delivered through Dr Hamza.

“These are payments we can account for. I have the figures and the accounts where the money was wired,” she said.

The allegations, however, remain claims by Gold Medal officials and could not independently be verified by The Investigator.

There was also no evidence presented to this publication showing the nature of any contractual or official arrangement under which such payments would have been made.

Gold Medal Shuts Down

The company believes its refusal to give Nakalema a stake eventually triggered the enforcement action that brought its business to a standstill.

Ruth claims Nakalema threatened to close the company after the Chinese investors refused to make her a partner.

Two months ago, according to the company, URA enforcement officials raided its premises and subsequently closed the business.

Since then, Gold Medal says it has been unable to operate. “We have not worked at all this year. That is why we are demanding justice,” Ruth said.

The closure has reportedly affected the company’s Chinese investors, employees and numerous small-scale traders who depended on Gold Medal to consolidate and clear their merchandise.

For the Chinese investors, the dispute has evolved from a commercial disagreement into what they describe as a fight for the survival of their investment.

Questions for URA

The allegations raise broader questions about the conduct of revenue enforcement officers, the boundaries of intelligence operations and the protection of foreign investment in Uganda.

URA officials have wide responsibilities in enforcing tax and customs laws, including investigating suspected violations and ensuring compliance with customs procedures.

However, allegations that a public official demanded shares in a private company, sought to remove a director or received money from investors would raise serious questions if established.

Such claims would require scrutiny by the relevant authorities and should be tested against documentary evidence, financial records and the official record of the enforcement actions against Gold Medal.

The company says it is ready to provide its records, including alleged payment trails and recordings of meetings, to investigators.

The allegations also come at a time when Uganda continues to court Chinese investors and promote itself as a destination for foreign capital.

For Gold Medal’s owners, the central issue is no longer simply the original dispute with a customer.

They want authorities to investigate how a client compensation dispute escalated into what they allege became an attempt to control their business and, eventually, its closure.

Nakalema Responds

The Investigator contacted Nakalema by telephone and asked her to respond to the allegations made by Gold Medal. She declined to discuss the matter. “I am very busy. I can’t talk anything on that matter. And I also don’t have time to meet you,” Nakalema said.

Her response was the only comment obtained from her regarding the allegations.

The Investigator was unable to independently establish whether the alleged recordings and payment records exist or whether the enforcement action against Gold Medal was connected to the accusations made by Ruth.

The company maintains that it has evidence to support its claims and is demanding an investigation.

As the controversy deepens, the fate of Gold Medal now rests on whether the allegations can be independently substantiated and whether the relevant authorities will examine the evidence presented by the company.

For the Chinese investors and the Ugandan employees whose livelihoods depend on the business, the demand is straightforward: they want their company reopened and the circumstances surrounding its closure investigated.

Until that happens, Gold Medal remains shut, while serious allegations against a URA intelligence official continue to hang over the company’s collapse.