The US and UK governments have sanctioned Kamlesh Pattni, the man who cost Kenya at least Sh27 billion in a fictitious gold export scheme 30 years ago, for orchestrating a similar scam in Zimbabwe.
The Office of Public Affairs, a department under the US Treasury, says in its statement that it has placed sanctions on Mr Pattni, his brother-in-law Mukesh Mansukhlal Vaya and 26 other individuals and companies in relation to the Goldenberg-type scam in Zimbabwe.
The UK’s National Crime Agency also announced sanctions against Mr Pattni as it appointed Margaret Hodge its new Anti-Corruption Champion to lead a global fight against graft.
Mr Pattni allegedly used Suzan General Trading to claim incentives from the Zimbabwe government, under a programme intended to boost mineral exports.
In its claim documents, the dossier shows, Suzan General allegedly inflated the amount of gold it exported from Zimbabwe.
The move will see Washington DC seize all assets owned in the US by Mr Pattni, and all individuals and companies on the sanctions list.
Under US law, people holding any assets on their behalf in the US are required to surrender them to the Office of Foreign Assets Control (OFAC).
“As a result of today’s action, all property and interests in property of these targets that are in the United States or in the possession or control of US persons must be blocked and 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,” the statement from the US Treasury reads in part.
“OFAC’s regulations generally prohibit all dealings by US persons or within the United States (including transactions transiting the United States) that involve any property or interests in property of blocked or designated persons.”
In its decision to order an asset freeze against Mr Pattni and four of his associates, the UK cited bribery.
“Kamlesh Pattni is an involved person within the meaning of the Global Anti-Corruption Sanctions Regulations 2021 on the basis of the following ground: Pattni is or has been involved in being responsible for or engaging in serious corruption. Specifically, Pattni has been responsible for and engaging in serious corruption, namely bribery, in support of his illicit gold trading enterprises,” the UK government states on its sanctions list.
The allegations mirror a theft scheme in Kenya between 1991 and 1993, in which Mr Pattni was accused of using Goldenberg International to steal from taxpayers, after collaborating with powerful political figures.
During public inquests, former President Daniel Arap Moi was mentioned as one of the powerful politicians who facilitated payments in billions to Goldenberg International and its subsidiaries. Mr Pattni was charged but later acquitted.
The US dossier does not specify how much money Mr Pattni and his associates have allegedly siphoned from Harare.
But the documents indicate that he used 21 companies in Zimbabwe, Kenya, UAE, Kyrgyzstan, Singapore and the UK to launder the loot.
“Pattni and members of his network engaged in a scheme wherein they would generate cash via the sale of Zimbabwean natural resources in foreign jurisdictions. When Pattni and his network would return to Zimbabwe with the cash from the sale of the natural resources, they would overreport the amount of cash being brought back into the country, receive compensation for the overreported cash, and bribe government officials in Zimbabwe to receive protection for their illicit activity,” the press release from the US Treasury states.
“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. Russia uses the illicit gold trade to launder money and evade sanctions, in doing so bolstering Putin’s war efforts.”
Individuals sanctioned by the US alongside Mr Pattni and his brother-in-law Mr Vaya, nephew Mishaal Hitesh Pattni, suspected right-hand man Sanjay Keshavji Vaya, Raj Vaya Sanjay, Rahul Sood, David Paul Crosby and Dmytro Abakumov.
The companies sanctioned are Rubini Investments (British Virgin Islands), Manurama Ltd (Kenya), Samaria Holdings Ltd (UK), Suzan General Trading (PVT) Ltd, Skorus Investments (PVT) Ltd (Zimbabwe), Mirdk Fyuels 0500, Royal Sona 0500, Sakhara Petroleum 0500, Supreme Ef Iks 0500 (Kyrgyzstan), Fiza Gold and Bullion Trading LLC, Golden Luxury Jewellery Trading LLC, Marwa Investments Ltd, Memories Golden Jewellery LLC, Precious Bullion DMCC, Rubini Investment Group Ltd, Ruhmeer Diamonds DMCC, Samaria Holdings Ltd, Sun Multinational DMCC, Sun Star Travel & Tourism LLC and Suzan General Trading JLT (UAE).
