Balondemu, co-accused remanded over alleged gold sh2.2b scam

KAMPALA - The State House Anti-Corruption Unit (SHACU), in collaboration with the Criminal Investigation Directorate (CID) and the Office of the Directorate of Public Prosecution (ODPP), on Wednesday, September 3, 2025, arraigned businessman Godfrey Luyima before the Kampala Capital City Authority (KCCA) Chief Magistrate’s Court over allegedly conning a Korean national, Hyun Uk Kim, of $600,000 (approx. sh2.2b).

Luyima joins controversial Kampala District Land Board chairman, David Balondemu, along with lawyers Eric Mkwe, James Jeff Mugisha, and Godfrey Maviri, who were charged in the same case in 2023. The matter was later dismissed by court under unclear circumstances. 

However, the Director of Public Prosecution (DPP) has since ordered the reinstatement of charges against all the suspects involved.

Luyima faces multiple charges, including obtaining money by false pretence, uttering false documents, and forgery.

SHACU, in a statement, indicated that “investigations reveal that in September 2021, while in Kampala District, the accused obtained over $600,000 from Hyun Uk Kim, by falsely claiming he would supply him with 53 kilograms of gold. To execute the fraud, he allegedly posed as a Congolese gold dealer under the false identity, Augustine Likambo.”

Prosecution alleges that he further presented forged documents to the victim in a bid to make the transaction appear genuine, whereas it was not.

In September 2023, Balondemu was arrested by SHACU over a bogus deal in which Korean investors were defrauded of more than sh2.2b.

It is alleged that at his offices of M/s Balondemu & Co Advocates along Parliamentary Avenue, Balondemu received $600,000 by falsely pretending that they were selling 53 kilograms of gold to Hyun Uk Kim, whereas it was not true.