Zimbabwean President Emmerson Mnangagwa has suffered a huge blow after one of his closest business associates Kamlesh Pattni – a Kenyan gold baron who was based in Harare at one time – was hit by a wave of United States and United Kingdom sanctions for illicit bullion trading and corruption.
The US and UK measures on the underworld gold dealers and their networks, including Zimbabwean officials, came on International Anti-Corruption Day yesterday.
The US and UK governments imposed sanctions on Pattni, a British-Kenyan businessman, along with his wife and brother-in-law, and their assets will be frozen.
Pattni featured in Al Jazeera documentary: Gold Mafia released on 23 March 2023 which exposes illicit financial flows from Zimbabwe, including serious abuse of diplomatic immunity, illicit gold trading, corruption and money laundering that have robbed the country of billions.
He was implicated in one of Kenya’s biggest corruption scandals, Goldenberg, which is said to have cost the country at least US$600m. Pattni is deeply involved in Zimbabwean gold deals, and the associated underworld networks which operate in the multi-billion sector.
“Illicit gold is an assault on the legitimate trade of a valuable commodity, fuelling corruption, undermining the rule of law, and entrenching human rights abuses such as child labour,” read the UK statement.
The UK said the sanctions were meant to “disrupt and deter” the business dealings of Pattni.
The US Department of the Treasury’s Office of Foreign Assets Control sanctioned 28 individuals and businesses involved in a global gold smuggling and money laundering network based in Zimbabwe, pursuant to Executive Order (E.O.) 13818, which targets perpetrators of serious human rights abuse and corruption around the world.
It said the global network led by Pattni has facilitated illicit activities by bribing officials, deploying trusted supporters to mask ownership, and weaving a global web of businesses to hide the illicit activities.
This fraudulent scheme has robbed Zimbabwe’s citizens of the benefit of those natural resources, while enriching corrupt government officials and criminal actors, it added.
“Across the globe, when corrupt actors like Pattni choose to exploit openings in governance structures to benefit themselves and their cronies, communities suffer and public trust is undermined,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith.
“Corruption respects no borders and its consequences are felt worldwide. As we mark International Anti-Corruption Day, the United States reaffirms our commitment to use all available tools to hold these individuals to account for their schemes.”
According to the US Treasury, Pattni was friends with Mugabe and used this relationship to make money by exploiting the country’s natural resources.
“This fraudulent scheme robbed Zimbabwe’s citizens of the benefit of those natural resources while enriching corrupt government officials and criminal actors,” it said.
Read full US Statement here
