Kampala, Uganda: The Uganda Revenue Authority (URA) has sounded a stern warning to timber dealers, clearing agents, and customs officers implicated in a sophisticated smuggling racket involving unprocessed timber exports in violation of a Presidential Executive Order on deforestation.
Investigations by the Tax Investigations Department recently unearthed a network of fraudsters colluding to forge documents and bypass restrictions on exporting unprocessed wood, an offence prohibited under Executive Order PO/03 dated 21 June 2023.
According to URA Commissioner for Tax Investigations, Mr. Denis Kugonza Kateeba, the illegal scheme involved truck owners, clearing agents, and URA border staff who fabricated Congolese customs paperwork to disguise Ugandan timber as transit cargo destined for South Sudan.
“Licenses of any clearing firm involved in such fraud schemes will be revoked once investigations prove that you participated in this behaviour,” Mr. Kugonza warned in a statement released Monday.
How the Scam Works
A detailed probe revealed that clearing agents and timber owners forged DR Congo customs documents to evade Uganda’s ban on raw timber exports. From here, URA customs officers at Vurra and Elegu border points cleared shipments without inspecting the trucks, claiming they originated from ungazetted border crossings—contrary to customs guidelines.
The probe also showed that some customs staff manipulated police barrier records by introducing parallel registers to conceal unverified shipments, while directors of clearing companies shared Tax Identification Number (TIN) logins with unlicensed individuals, complicating accountability.
Police officers stationed at the border said they never sighted the trucks, and no entries were made in official registers until customs officials intervened to retroactively record the shipments.
“This TIN misuse and document forgery are serious offences. We expect all border staff to work cautiously and uphold URA’s integrity,” Mr. Kugonza emphasized.
He added that URA would embark on continuous sensitisation of truck owners, timber dealers, and clearing agents to ensure compliance and protect Uganda’s forests from depletion.
Key Borders Affected
The fraud was most prevalent at the Elegu and Vurra border posts, where the racket thrived due to gaps in oversight and collusion between some customs officers and unscrupulous traders.
Mr. Kugonza urged the public to be vigilant and report any suspicious activity, reiterating that enforcement will be tough and consistent: “The business community must work with URA to curb this vice before it destroys our environment and undermines fair trade.”
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