Kampala District Land Board Chairperson, David Balondemu, has been remanded to Luzira prison after being charged with obtaining money from a Korean investor under false pretenses. The allegations revolve around a purported 53-kilogram gold scam in which Mr. Balondemu, 52 years old, is accused of defrauding Mr. Hyun Uk Kim of $600,000 (approximately Shs2.2 billion).
Mr. Balondemu’s arraignment took place on Friday at the City Hall Chief Magistrate’s Court, presided over by Mr. Edgar Karakire. His arrest was carried out by officials from the State House Anti-Corruption Unit and the police. The court has remanded him until November 6, 2023, as his three attempts to secure bail, led by his legal team, proved unsuccessful.
The complaint leading to Mr. Balondemu’s arrest was lodged by Mr. Kim, who reported significant financial losses allegedly incurred due to dealings with Kampala-based gold traders. The state prosecution, represented by Ms. Mercy Yamangusho Khaidarah, has also requested a warrant for the arrest of Geoffrey Eric Mkwe, another lawyer, who faces similar charges in this case.
Notably, this development comes in the wake of the remand of two of Mr. Balondemu’s co-accused, James Jeff Mugisha and Godfrey Maviri, who were remanded to prison on October 4, 2023, for their involvement in the same alleged offense, dated back to 2021. They are expected to remain in custody until November 25, 2023.
According to the charge sheet, during the period between March and November 2021, at the offices of M/S Balondemu & CO Advocates along Parliamentary Avenue in Kampala City, Mr. Balondemu, Mr. Mkwe, Mr. Mugisha, Mr. Maviri, and others still at large are alleged to have conspired to obtain $600,000 from Mr. Kim by falsely representing that they were selling him gold.
Court documents indicate that Mr. Kim was initially contacted by Mr. Mugisha, who claimed to know the supposed gold seller. He then got in touch with the seller through the seller’s alleged son and interpreter after being picked up from the airport.
According to the State House Anti-Corruption Unit officials, the accused parties convened at the Imperial Residence Apartment, where Mr. Kim was shown gold nuggets. Subsequently, they were taken to M/S NSB Advocates and Legal Consultants, where a Memorandum of Understanding was signed. This document stipulated a deposit of $208,000 (approximately Shs700 million), which the complainant, Mr. Kim, paid in cash to the law firm.
However, instead of the gold being transported overland as initially arranged, the complainant was instructed to pay an additional $62,000 (over Shs200 million) for Cargo Flight Insurance. It is worth noting that during these transactions at the law firm, Mr. Maviri was in the company of the gold seller. A subsequent search at his residence led to the discovery of six kilograms of suspected gold nuggets.
In this ongoing legal matter, the court will now await the opportunity to make a ruling after reviewing the lengthy submissions presented by both parties involved.
