Pattni, a Kenyan businessman, was embroiled in the infamous Goldenberg scandal, one of Kenya’s most significant corruption scandals, which reportedly cost the country a staggering $600 million (£470 million).
The US Treasury states that Pattni’s ties with former Zimbabwean President Mugabe allowed him to profit from exploiting the country’s mineral resources.
“This fraudulent scheme robbed Zimbabwe’s citizens of the benefit of those natural resources while enriching corrupt government officials and criminal actors,” the statement read.
A statement from the UK Foreign and Commonwealth and Development Office confirmed the sanctions which it said targeted five individuals including Patni.
“The sanctions will disrupt and deter the illicit gold trade by imposing asset freezes on five individuals, including infamous British-Kenyan gold smuggler Kamlesh Pattni and his enablers.” the statement said.
The BBC reports that although Pattni denied any involvement in money laundering or gold smuggling, he was also implicated in Al-Jazeera’s explosive investigation into the “gold mafia” in Zimbabwe.
The Goldenberg scandal
The scandal, one of Kenya’s most infamous corruption cases, dates back to the 1990s during former President Daniel arap Moi’s administration.
The scandal revolves around Goldenberg International and as at then, Kamlesh Pattni was one of its directors among those charged with fraud and felony offences in connection with the matter.
According to the Kenyan attorney general, the company received around 5.8 billion Kenyan shillings ($80 million) in export compensation.
The scandal is estimated to have cost Kenya a staggering $600 million, equivalent to over 10% of the country’s annual GDP.
