The Gold Mafia and its impact on Africa
In recent news, Al Jazeera reported on the Gold Mafia, a group of criminal gangs who are responsible for billions of dollars’ worth of gold smuggling and money laundering in southern Africa. While this is a significant issue, we believe that it is important to highlight the broader context and implications of these criminal activities.
The Gold Mafia is a group of rival gangs made up of various characters, including new-age pastors, old-school smugglers, diplomats, and even the Zimbabwean president’s niece Henrietta Rushwaya. These people are responsible for smuggling gold and laundering money, which has a significant impact on the economies of southern African countries.
The smuggling of gold and other precious metals in southern Africa has been a persistent issue for decades. Countries in this region are rich in minerals, making them a prime target for criminal organizations. The illegal trade of gold generates vast amounts of money that are then laundered through various means, including shell companies, offshore bank accounts, and illegal casinos.
The impact of this criminal activity is far-reaching. It not only robs these countries of valuable resources but also contributes to the destabilization of their economies. The profits from gold smuggling often go towards funding other illegal activities, including human trafficking and the proliferation of small arms.
Al Jazeera report on the Gold Mafia Content
Gold Mafia - Episode 1 - The Laundery Service
Gold Mafia - Episode 2 - Smoke & Mirrors
Gold Mafia – Episode 3 – El Dorado
Gold Mafia – Episode 4 – Have The King With You
Who are the Gold Mafia Named in this report so far?
Kamlesh Pattni aka ‘Brother Paul’
Kamlesh Pattni, also known as Brother Paul, is a Kenyan businessman and pastor who was born in 1965 in Mombasa, Kenya. He was implicated in the 1990s Goldenberg scandal but was acquitted in 2013. Pattni currently runs a church and has been described as a “criminal mastermind” by some. Information about his family, including his wife, children, parents, and siblings, can be found in this article.
Uebert Angel
Uebert Angel, born as Uebert Mudzanire on September 6, 1978, is a British-Zimbabwean businessman and charismatic evangelical preacher. He is the founder of Spirit Embassy, a Pentecostal ministry in the United Kingdom. Additionally, he serves as the Presidential Envoy and Ambassador At Large for the country of Zimbabwe to Europe and the Americas. Commonly referred to as Prophet Angel, you can find more information about him on his official website.
Rikki Doolan aka Pastor Rikki
Rikki Doolan, also known as Pastor Rikki , is a pastor at Spirit Embassy, which is a part of Uebert Angel’s Good News Church and the Bleach Blonde side-kick to Uebert Angel. Additionally, he is a Gospel Rock n’ Roll and GoodNews Music artist, with an official music channel on YouTube. You can find more information and updates about Rikki Doolan on his Facebook page.
Henrietta Rushwaya
Henrietta Rushwaya is a Zimbabwean politician as well as the niece of the Zimbabwe president, she was also football administrator, and former CEO of the Zimbabwe Football Association (ZIFA). She was born in 1968 in Masvingo and trained as a teacher at Morgenster Teachers College. Rushwaya later worked at the Sports and Recreation Commission and, in 2000, was selected to study Sports Management on a scholarship in Norway. She has been linked, arrested, and tried on several cases of corruption for her role in match-fixing scandals in Zimbabwe. Following her career in football administration, she became the president of the Zimbabwe Miners Federation. In October 2020, Rushwaya was arrested at Robert Mugabe International Airport.
She seems like a lovely lady!
Ewan Macmillan aka Mr Gold
Ewan Macmillan, also known as Mr. Gold, is an individual involved in Zimbabwe’s gold-smuggling industry and is considered the arch-rival of Kamlesh Pattni. He was first jailed for gold smuggling in the early 1990s when he was just 21 years old. Macmillan is described as loud and loquacious and, by his own account, has been to prison on several occasions since his first arrest.
Sounds like someone that should be on LinkedIn for sure!
Alistair Mathias
Alistair Mathias is an individual based in Dubai who has been described as the brains of Ewan Macmillan’s gold smuggling operation. He is associated with a company incorporated in Ghana and was reported by his Ghanaian partner, Henry Osei, owner of Gulrest Resources Company Limited (Ghana), to authorities. However, a court in the UAE acquitted Alistair Mathias of all charges brought against him and agreed that it was Osei and his company, Guldrest Resources Limited (Ghana), who owed him more than $9.2 million.
Simon Rudland
Simon Rudland is a Zimbabwean businessman with interests in logistics, agriculture, and finance. He is the co-owner of Gold Leaf Tobacco Zimbabwe and a member of the Fair Trade Independent Tobacco Association (FITA). Simon and his brother Hamish founded Pioneer Transport in 1995. They expanded their business by acquiring other top transport companies such as Unifreight. In addition, Simon’s Mauritius-registered business, Magister, organized the merger of the subsidiaries of Zimplow and Unifreight, both of which are registered in Zimbabwe.
Who is Wicknell Chivayo? Not mentioned in the Show (coincidence link?)
“According to the documentary they smugglers use Emirates flight EK714….. Guess who is always on that flight and likes flashing money….Wicknell Chivayo ..all makes sense”
*Source https://twitter.com/Am_Blujay/status/1638970354684030989
The Money Laundering Scandal
According to the Daily Maverick’s report, South African banks were vulnerable to a group of alleged money launderers who had ties to luminaries in the gold and tobacco sectors. These criminals infiltrated South African banks by using “shape-shifting” techniques that allowed them to evade detection. They were able to transform a small bank’s balance sheet overnight by introducing large sums of cash into the banking system.
One of the key players in the scandal was Actinic, a company that opened an account at Sasfin Bank and immediately received R23-million from unknown sources. Actinic then paid most of the money to Aulion Global Trading over the course of two days. These large transactions were suspicious and should have triggered an investigation by the bank. However, the criminals had already figured out how to evade detection.
The impact of this scandal was significant, with many South Africans losing trust in their banks. This scandal has highlighted the importance of stricter regulations and better due diligence processes for banks operating in South Africa.
Who are behind Aulion Global Trading?
Aulion Global Trading DMCC is a private limited company established in 2015 and based in Dubai, United Arab Emirates. The organization operates in the Diamonds & Gemstones sector. Aulion Global Trading DMCC is connected to Rappa Resources, a South African firm, as it procures semi-refined gold bars from Rappa Resources and also forms part of the Rappa Management group of companies.
Aulion Global Trading has been linked to a gold trader named Howard “Howie” Baker in a multibillion-rand gold VAT scheme investigation. The company issued two invoices to Gold Leaf Tobacco Corporation (GLTC) worth nearly R400-million.
What can be done to combat the Gold Mafia?
The fight against the Gold Mafia requires a multifaceted approach. First and foremost, there must be a concerted effort to disrupt the supply chain of illegal gold. This includes increased regulation of the mining and refining industries, as well as border controls to prevent the smuggling of gold and other precious metals.
Ban hand-carry Gold on Flights
Dubai Multi-Commodities Centre (DMCC) CEO, Ahmed Bin Sulayem, has called for a global ban on hand-carrying gold on flights, citing the issue of smuggling. In this article, we will delve deeper into the reasons behind the DMCC’s CEO’s call for this ban and the implications of such a move on the gold industry and global trade.
Reasons for the Call:
Bin Sulayem has been at the forefront of the movement to ban the hand-carrying of gold doré, citing that this practice is a “traffic that is wide open to abuse“. Gold doré is an unrefined alloy of gold and silver that is produced at mines and then transported to refineries to be processed. It is often hand-carried by couriers, making it difficult to monitor and regulate its movements.
Bin Sulayem’s call for a global ban on hand-carrying gold on flights is not a new one. He has been advocating for this measure for several years now, arguing that it would help combat illegal smuggling of gold and other precious metals. Bin Sulayem has also pointed out that Dubai has taken significant steps to regulate its gold industry, including implementing stricter licensing requirements and ramping up inspections and audits of traders and refiners. However, he has stressed that the issue of smuggling remains a global problem and requires a coordinated effort to address.
Implications of a Ban:
If a global ban on hand-carrying gold on flights were to be implemented, it would have significant implications for the Gold Mafia, gold industry and global trade. One of the most immediate impacts would be on the couriers who currently transport gold doré. They would need to find alternative means of transport, which could increase costs and potentially delay shipments.
However, a ban could also have positive effects on the industry. By eliminating the hand-carrying of gold doré, it would make it easier to regulate and monitor the movement of gold and other precious metals. This could help reduce the instances of illegal smuggling and increase transparency in the industry.
Moreover, a ban could also help level the playing field for countries that have implemented strict regulations on their gold industries. Countries that have lax regulations could no longer rely on hand-carrying to circumvent stricter regulations elsewhere.
In addition, there must be a greater focus on law enforcement and judicial measures to bring those involved in illegal gold trading to justice. This requires cooperation between countries in the region, as well as the international community, to ensure that those who profit from these illegal activities are held accountable.
Dubai as a Gold Trading Hub Cleaning up its act
Dubai has long been known as a global gold trading hub, but it has also faced criticism for its role in facilitating the conflict gold trade and money laundering.
One significant step that Dubai has taken to clean up its gold industry and combat money laundering is to remove cash transactions in the Gold Souk. It was recommended that the US government, the European Union, and gold industry actors should engage with UAE authorities to ban cash transactions for gold above small amounts. This would help eliminate the off-the-books cash transactions for hand-carried gold, which can potentially involve millions of dollars.
By removing cash transactions in the Gold Souk, Dubai has increase transparency and reduced the opportunities for money laundering. This has also encouraged better regulation and compliance within the gold industry, making it more difficult for conflict gold and illicit funds to enter the market.
Implementing stricter controls on gold transactions and working closely with international partners to enforce anti-money laundering regulations would not only help protect the reputation of Dubai’s gold industry but also contribute to global efforts against illegal gold trade and money laundering.
That being said, if you are in the industry, you will know that a lot of the open trade has gone behind closed doors and secret offices have been established that look like a doctors waiting room, so it’s not entirely cleaned up but has progressed some ways towards a better Dubai gold industry.
But lets not forget that all this gold will end up in Switzerland at some point anyway! Swiss Gold Good delivery my ass!
The Hurdles of Opening a Bank Account in Dubai for a Gold Business
In the show they mentioned setting up a business in Dubai and then opening up a bank account. Let me categorically tell you that it’s nigh on impossible for anyone in the gold industry in Dubai to open a bank account and that goes to Singapore as well, because the gold industry, as far as the banks are concerned, is a dirty business and they should know because most banks are dirty themselves.
Opening a bank account for a company in the gold business in Dubai can be a challenging process due to a number of reasons. The first and foremost difficulty stems from the stringent checks on compliance and anti-money laundering procedures. Given the nature of the gold industry, banks are extra cautious to ensure that they are not facilitating any illicit activities or violating any regulations.
So, take the Dubai Bank account comment in the show with a pinch of salt!
Conclusion
The Gold Mafia Al Jazeera’s investigative report brings to light the extensive network of criminal gangs involved in gold smuggling and money laundering in southern Africa. The documentary exposes the involvement of various individuals known as the Gold Mafia, including new-age pastors, politicians, and businesspeople, who contribute to the destabilization of African economies and perpetuation of other illegal activities. The problem is complex and requires a multifaceted approach to address it.
To combat the Gold Mafia and its activities there is a need for, increased regulation in the mining and refining industries, stricter border controls, and greater focus on law enforcement and judicial measures are necessary. A global ban on hand-carrying gold on flights, as proposed by the DMCC’s CEO, could also help reduce instances of illegal smuggling.
Dubai has made some strides in cleaning up its gold industry by removing cash transactions in the Gold Souk, increasing transparency and reducing opportunities for money laundering. Despite these efforts, the industry still faces challenges, and it is crucial for international partners to work together to enforce anti-money laundering regulations and tackle the illegal gold trade.
Spencer Campbell
Director SE Asia Consulting - Precious Metals Consultant
