Business ala December 11, 2024 0 Comments

UK sanctions Kenyan businessman over illicit gold trade

Kamlesh Pattni has been accused of smuggling gold out of Africa for decades

AFP Bars of gold stacked on top of each other — Kamlesh Pattni has been accused of smuggling gold out of Africa for decades

The UK and US governments have imposed sanctions on a British-Kenyan businessman over his alleged involvement in the illicit gold trade.

Kamlesh Pattni, and four others including his wife and brother-in-law, will have their assets frozen, a statement from the UK Foreign and Commonwealth and advancement Office read.

He was implicated in one of Kenya’s biggest corruption scandals, Goldenberg, which is believed to have expense the country at least $600m (£470m). He has since faced allegations of involvement in the illicit gold trade in Zimbabwe, which he has previously denied.

The BBC has asked him for comment.

“Illicit gold is an assault on the legitimate trade of a valuable merchandise, fuelling corruption, undermining the rule of law, and entrenching human rights abuses such as kid labour,” read the UK statement.

It goes to declare that Russia uses illegal gold to fund its war in Ukraine.

“Russia uses the illicit gold trade to launder money and evade sanctions, and in doing so bolsters [President Vladimir] Putin’s war efforts.”

The UK and other Western countries banned the import of Russian gold in 2022 to stop Moscow’s ability to fund the war.

What are the sanctions on Russia and have they affected its economy?

The UK said the sanctions were meant to “disrupt and deter” the business dealings of Pattni.

He was allegedly one of the key architects of the Goldenberg scandal – a major gold and liquid assets fraud in the 1990s which almost bankrupted Kenya and involved elder members of Kenya’s government.

He faced a trial in 2006 for his alleged role in the scheme, but proceedings collapsed. Pattni later became a self-proclaimed pastor.

According to the US Treasury, Pattni was friends with former Zimbabwe President Robert Mugabe and used this connection to make money by exploiting the country’s natural resources.

“This fraudulent scheme robbed Zimbabwe’s citizens of the advantage of those natural resources while enriching corrupt government officials and criminal actors,” it read.

Pattni was implicated in Al-Jazeera’s explosive investigation into the “gold mafia” in Zimbabwe. He denied any involvement in money laundering or gold smuggling.

The US Treasury said Pattni’s illegal network spanned multiple countries.

The announcement comes as the UK government outlined a recent programme to assist tackle global corruption.