Why Kenyans are being conned in gold scams
May. 15, 2019
Hundreds of Kenyans are falling to gold scam syndicates following their ignorance about how the precious metals business is run.
The scam is prevalent since a number of people seeking to buy the precious metal opt for underhand dealings to avert taxation.
The Chamber of Mines Chairman CP Mwangi said it was regrettable that most of those who have lost millions of shillings to the scammers did not follow the procedure set in the law.
He said gold has a ready market worldwide hence anyone purporting to sell to a buyer locally is just but out to defraud ill-informed citizens.
Mwangi cited a case of a tube purported to be gold from South Africa, which was circulated in Nairobi and of which some senior officials and bankers were conned.
The lobbyist said most of the con games involved the coating of metallic items such as iron and copper with brass, which most people pass off as gold.
“The problem we are having is that people want to do business without involving professionals yet they can work with the chamber and the ministry to help them recognize the dealers,” Mwangi said.
His sentiments followed the arrest of 15 people linked to a scheme where a member of the Saudi royal family was conned of Sh250 million by fraudsters posing as gold dealers.