The British and American governments have imposed sanctions on a British-Kenyan businessman over his alleged involvement in the illegal gold trade.
Kamlesh Pattni and four others, including his wife and brother-in-law, will have their assets frozen, a statement from Britain’s Foreign and Commonwealth and Development Office said.
He was involved in one of Kenya’s biggest corruption scandals, Goldenberg, which reportedly cost the country at least $600 million. He has since faced allegations of involvement in Zimbabwe’s illegal gold trade, which he has previously denied.
The BBC has asked him for comment.
“Illegal gold is an attack on the legitimate trade in valuable resources, fueling corruption, undermining the rule of law and entrenching human rights abuses such as child labour,” the British statement said.
It is said that Russia is using illegal gold to finance its war in Ukraine.
“Russia uses the illegal gold trade to launder money and evade sanctions, thereby exacerbating the situation [President Vladimir] Putin’s War Efforts.”
Britain and other Western countries have banned imports of Russian gold in 2022 to stem Moscow’s ability to finance the war.
Britain said the sanctions were intended to “disrupt and deter” Pattni’s business activities.
He is believed to have been one of the main architects of the Goldenberg scandal, a major gold and currency fraud in the 1990s that nearly bankrupted Kenya and involved senior members of the Kenyan government.
He was tried in 2006 for his alleged role in the scheme, but the proceedings failed. Pattni later became a self-styled preacher.
According to the US Treasury Department, Pattni was friends with former Zimbabwean President Robert Mugabe and used this relationship to make money by exploiting the country’s natural resources.
“This fraudulent scheme deprived Zimbabwean citizens of the benefits of these natural resources while enriching corrupt government officials and criminal actors,” the report said.
Pattni was involved 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 Department said Pattni’s illicit network spanned multiple countries.
The announcement comes as the UK government outlines a new program to help tackle global corruption.
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