US levels sanctions in Zimbabwe, citing corruption

The US Department of the Treasury on Monday announced that it had issued new sanctions on four individuals and two entities in the African nation of Zimbabwe for corruption as well as enabling human rights abuses.

The announcement comes one day before US President Joe Biden welcomes African presidents to the White House for a US-Africa Leaders Summit.

The Treasury said the individuals and entities all had ties to businessman Kudakwashe Tagwirei, who was sanctioned by the US in 2020 for his support of Zimbabwe's leadership.

Zimbabwean businessman doles out favors to get contracts

Washington says Tagwirei has continually leveraged his pull with leadership to haul in massive state contracts and gain access to hard cash. He is accused of doling out lavish gifts, such as expensive cars, to curry favor with top Zimbabwean officials.

In a statement released on Monday, Treasury claims, "Since former Zimbabwe President Robert Mugabe's 2017 departure, Tagwirei used a combination of opaque business dealings and his ongoing relationship with President Mnangagwa to grow his business empire dramatically and rake in millions of US dollars."

Among the individuals charged were Tagwirei's wife Sandra Mpunga, and Emmerson Mnangagwa Jr., son of Zimbabwe's president — who is also under US sanctions.

Mnangagwa Jr. is said to be in charge of the president's business dealings with Tagwirei.

The other individuals and entities named in the sanctions for their ties to Tagwirei and his company Sakunda Holding are Nqobile Magwizi, Obey Chimuka, Fossil Agro and Fossil Contracting.

In the Treasury Department statement, Under Secretary for Terrorism and Financial Intelligence Brian Nelson wrote, "We urge the Zimbabwean government to take meaningful steps towards creating a peaceful, prosperous, and politically vibrant Zimbabwe, and to address the root causes of many of Zimbabwe's ills: corrupt elites and their abuse of the country's institutions for their personal benefit."

Washington's decision means that all assets tied to the named individuals and entities in the US will be frozen and that US citizens and companies are effectively barred from doing business with them.

US Treasury removes individuals from previous sanctions list

The Treasury's Office of Foreign Assets Control (OFAC) also removed 17 individuals from its Specially Designated Nationals and Blocked Persons List (SDN List) as they "no longer undermine Zimbabwe's democratic processes and institutions."

The statement released Monday read: "The power and integrity of OFAC sanctions derive not only from the ability to designate and add persons to the SDN List, but also the willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior."

Edited by: Mark Hallam