In a shocking revelation to Parliament this January, Uganda’s Auditor General, Edward Akol, reported that the nation is hemorrhaging UGX 11 trillion every year due to illicit gold exports. The findings have raised concerns about the state of Uganda’s mining industry and the inadequacies in its regulatory framework.

Akol’s report exposed significant breaches in trade regulations, highlighting how unscrupulous actors have exploited weaknesses in oversight systems to smuggle gold out of the country without adhering to legal requirements.

“Illegal gold exports have been occurring without the necessary permits and have completely bypassed established procedures set by regulatory bodies like the Uganda Revenue Authority (URA),” Akol noted during his address.

The audit, which examined several years of activity, identified numerous companies engaging in the unlawful export of gold. These firms reportedly took advantage of gaps in regulation and poor coordination between government agencies responsible for monitoring the sector.

The report also detailed rampant under reporting of export volumes, an issue compounded by insufficient documentation and widespread non-compliance with export laws. This has resulted in massive tax evasion, causing a substantial loss in revenue and undermining the mining sector’s contributions to Uganda’s economy.

The illegal trade has not only deprived the government of vital foreign exchange earnings but also tarnished the integrity of the mining industry, a key revenue generator for the nation.

In response to the report, the Ministry of Finance and the Uganda Revenue Authority announced plans to tighten enforcement and improve oversight mechanisms. “We are prioritizing reforms and enhanced regulatory measures to address this crisis and restore order to the gold trade,” they said in a joint statement.

The findings have sparked widespread calls for urgent reforms in Uganda’s mining policies to seal loopholes and safeguard the country’s economic interests.