US, UK sanction Kamlesh Pattni over Zimbabwe gold scam

Kamlesh Pattni, infamous for orchestrating the Goldenberg scandal that cost Kenya an estimated Sh27 billion three decades ago, is once again at the centre of an international fraud scheme.

This time, the United States and the United Kingdom have imposed sanctions on Pattni and his associates for running a similar scam in Zimbabwe.

The Office of Public Affairs under the US Treasury issued a statement accusing Pattni, his brother-in-law Mukesh Mansukhlal Vaya, and 26 other individuals and companies of participating in a fraudulent gold export scheme.

The allegations echo the Goldenberg scandal, which involved inflated claims for gold and diamond exports and drained public funds.

Using Suzan General Trading, Pattni allegedly exploited a Zimbabwean government incentive programme aimed at promoting mineral exports. According to the US dossier, the company falsely inflated the amount of gold exported from Zimbabwe to claim undue incentives.

“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 they returned to Zimbabwe, they over-reported the cash brought back and received compensation for the inflated amounts,” stated the US Treasury.

The report further revealed that the network bribed Zimbabwean officials to ensure protection for their illicit activities.

The sanctions impose sweeping restrictions on Pattni and his network. The US has ordered the seizure of all assets linked to the individuals and companies involved, effectively barring them from accessing American financial systems.

“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,” the US Treasury statement read.

Similarly, the UK’s National Crime Agency has frozen Pattni’s assets and imposed sanctions under its Global Anti-Corruption Sanctions Regulations 2021.

“Kamlesh Pattni has been responsible for engaging in serious corruption, namely bribery, in support of his illicit gold trading enterprises,” the UK government stated.

The allegations against Pattni bear striking similarities to his role in Kenya’s Goldenberg scandal (1991–1993), where he was accused of colluding with powerful political figures, including the late President Daniel Arap Moi, to syphon billions from taxpayers. Despite Pattni's eventual acquittal, the case continues to rank among Kenya's most notorious corruption scandals.

“This is not just about one individual. It’s a systemic assault on the rule of law and ethical business practices,” said Margaret Hodge, the newly appointed UK Anti-Corruption Champion.

The US Treasury dossier reveals a vast international network that launders proceeds from Zimbabwe's illicit gold trade. The operation spanned 21 companies across Zimbabwe, Kenya, the UAE, Kyrgyzstan, Singapore, and the UK, including entities such as Rubini Investments (British Virgin Islands), Suzan General Trading (Zimbabwe), and Golden Luxury Jewellery Trading LLC (UAE).

“Illicit gold is an assault on the legitimate trade of a valuable commodity, fueling corruption, undermining the rule of law, and entrenching human rights abuses such as child labor," the US Treasury emphasised.

The crackdown on Pattni’s network is part of a larger effort to curb corruption linked to illicit resource exploitation. The sanctions also highlight the growing use of gold to launder money and evade sanctions, with the US accusing Russia of employing similar tactics to fund its war efforts.

For Zimbabwe, already struggling under economic and political pressures, this scandal further erodes trust in its institutions. Analysts warn that the case underscores the urgent need for stricter oversight and transparency in resource management.