15 arrested as police bust fake gold racket in city

Police yesterday detained 15 suspects in an investigation into a fake gold syndicate that has defrauded dozens of unsuspecting foreigners in Nairobi.

The operation was triggered by a complaint by members of Dubai royal family said to have been defrauded close to Sh400 million by the gang, triggering a probe that has roped in a senator.

Yesterday, United Arab Emirates embassy in Nairobi declined to comment on the matter that prompted a protest to Kenyan authorities by UAE Prime Minister Sheikh Mohammed bin Rashid al Maktoum, who complained about seizure of a shipment destined for Dubai.

No comment

Efforts to get a word from UAE Ambassador Khalid Khalifa Abdullah Rashid Al Mu’alla at his office in Nairobi were met with a terse “no comment” even on whether he was handling any complaint.

A secretary to Al Mu’alla said the diplomat did not wish to share any information on the matter immediately, and would only issue a statement at a later date subject to some unspecified conditions.

In his protest, Maktoum, who is also the ruler of Dubai City, says that his consignment of gold was intercepted and detained at the Jomo Kenyatta International Airport.

Yesterday, Director of Criminal Investigations (DCI) George Kinoti announced a major crackdown on the fake gold dealers, saying they had tainted the image of the country.

The suspects were arrested in a house on Kaputei Road in Valley Arcade, Nairobi, where fake gold was also discovered.

The consignment, bearing Ghanaian custom papers, was stuffed in metallic boxes and their weight had been altered using cement and mallets.

Those behind the syndicate had made false bottoms on the metallic boxes and stuffed them with mallets and bags of cement to increase their weight. On top of the boxes, they displayed fake gold bars.

There were more than 30 assorted boxes with different weights.

Eight vehicles belonging to the suspects were also seized during the raid. They include: two Toyota Axios, two Mercedes Benz, one Toyota Crown, one Honda Insight, one Toyota Prado Tx, and one Subaru Outback.

Kinoti said the items were being used to defraud unsuspecting members of the public, especially foreigners.

“The house was an operational zone where the suspects took their victims to view the fake gold. We are looking for more suspects,” said Kinoti.

VIP zone

Detectives from the Serious Crimes Unit and Kilimani Police Division raided the two-acre compound within the larger Kaputei Gardens where they seized the suspects.

The owner of the house was not immediately known as those arrested said they were workers at the property.

Kaputei Gardens is usually guarded by police because of the many VIPs who live there.

The officers said the raid was part of a larger operation to hunt down fraudsters, following numerous complaints.

“We have received many complaints from people that they have been defrauded of money in a gold syndicate. They give similar descriptions on the players in the ring,” said an officer aware of the probe.

Kinoti called on embassies and high commissions to advise their nationals coming in for business.

“The gold scam has now reached alarming levels as unsuspecting foreign nationals are being swindled large amounts of money by fraudsters,” he said.

Kinoti said Kenyans and foreign nationals must ensure that they conduct proper due diligence on the person(s) they intend to engage in gold buying business with.

The top detective said foreigners should first contact the Department of Mines and Geology for procedures pertaining to buying and selling of gold and other precious metals.

The Dubai case started in September 25, 2018 when a group of people approached a nephew of Sheikh Maktoum, Mr Ali Zandi who represents Zlivia Company, a gold trading company based in Dubai, saying they would help deliver 4.6 tonnes of gold from Ndande Tribe in DR Congo.

The said gold was to be moved by road from DRC via Uganda. They claimed that they needed financial facilitation to deliver the consignment.

The group used known gold dealers, including a Russian national, to state there was a huge amount of gold in DRC ready for movement to the United Arab Emirates.

And after the said consignment moved from DRC through Uganda, on September 27, the Kenyans said the gold had been detained at JKIA.