African Gold Refinery in Uganda, businessman Alain Goetz has rubbished sanctions slapped on him by the U.S. Treasury Department for contributing to conflict in the Democratic Republic of the Congo.

While clarifying on the matter, in a statement to Bloomberg, the Belgian gold trader said that the research the Treasury Department based on to sanction him was from open-source reports by non-governmental organizations, which have previously been proven to be incorrect or biased in their reporting.

“The African Gold Refinery has been a model company that has contributed to the growth of Uganda and the region since inception, by improving the fiscal transparency in the regional gold trade while operating in full accordance with national, regional and international regulatory frameworks. Given the chance, we will be able to demonstrate the virtuousness of our initiatives and hopefully the unfair and unjust sanctions will be lifted,” Mr. Goetz said.

In a statement released on Thursday on the U.S. Treasury Department website, Mr. Goetz and others were sanctioned because of their involvement in the illicit movement of gold valued at hundreds of millions of dollars per year from the Democratic Republic of the Congo (DRC).

“Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), sanctioned Alain Goetz, the African Gold Refinery in Uganda, and a network of companies involved in the illicit movement of gold valued at hundreds of millions of dollars per year from the Democratic Republic of the Congo (DRC),” the statement reads.

“The illicit movement of gold provides revenue to armed groups that threaten the peace, security, and stability of the DRC. Today’s action was taken pursuant to Executive Order (E.O.) 13413, as amended by E.O. 13671, which targets, among other things, individuals and entities involved in activities that threaten the peace, security, or stability of the DRC or that undermine democratic processes or institutions in the DRC. Our action demonstrates the U.S. commitment to disrupt the illicit mineral trade and encourage mining sector transparency,” the statement further reads.

The U.S Treasury Department revealed that Mr. Goetz receive illicit gold from mines in regions of DRC that are controlled by armed groups, including the Mai-Mai Yakutumba and Raia Mutomboki that are involved in destabilizing activities in South Kivu, DRC.

“Goetz’s gold network has extensive refining and transport capabilities and sources gold from DRC, Kenya, South Sudan, and Tanzania. In 2014, Goetz incorporated AGR and has maintained ownership or control of AGR since then through his majority ownership of an offshore holding company in the Seychelles, AGR International Ltd., which holds virtually all of the shares of AGR, making Goetz the overall beneficial owner and/or shareholder of AGR. Since establishing AGR, Goetz has held multiple leadership positions in the company, including chief executive officer and director, and has been involved in AGR’s gold trading activities. In 2018, Goetz acknowledged that AGR refines about 150 kilograms of gold from the DRC per week, or approximately 8.5 tons per year, valued at $496 million. This amounts to almost all of Uganda’s total gold exports in 2018, which were approximately 10 tons and valued at $515 million,” the U.S said.

The U.S Treasury Department further disclosed that Mr. Goetz was designated pursuant to E.O. 13413 for being a leader of AGR, for having acted or purported to act for or on behalf of, directly or indirectly, AGR, and for being responsible for or complicit in, or having engaged in, directly or indirectly, support to persons, including armed groups, involved in activities that threaten the peace, security, or stability of the DRC or that undermine democratic processes or institutions in the DRC, through the illicit trade in natural resources of the DRC.

The U.S Treasury Department warned that, “As a result of today’s action, all property and interests in property of these persons that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC or otherwise exempt, OFAC’s regulations generally prohibit all dealings by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. U.S. persons may face civil or criminal penalties for violations of E.O. 13413.”

By Temuseewo Mpoza