UK, US sanction Kamlesh Pattni over illicit gold trade

The UK and US governments have imposed tough sanctions on Kamlesh Pattni, a British-Kenyan businessman, over his alleged role in the illicit gold trade. The sanctions, which also target his wife and brother-in-law, include asset freezes and are part of a broader effort to combat corruption and disrupt illegal gold networks.

Pattni, once at the centre of Kenya’s infamous Goldenberg scandal, is accused of orchestrating one of the country’s largest corruption cases, costing the economy over $600 million. Although he has long denied these allegations, his name has resurfaced in connection with illegal gold smuggling in Zimbabwe, a claim highlighted in Al Jazeera’s recent ‘gold mafia’ exposé.

The UK government condemned Pattni’s activities, stating that illicit gold trades undermine legitimate businesses, fuel corruption, and enable human rights abuses, including child labour. A statement from the UK Foreign Office added, ‘Russia uses the illicit gold trade to launder money and evade sanctions, directly funding President Vladimir Putin’s war efforts in Ukraine.’

The sanctions aim to disrupt Pattni’s operations and deter future illicit trade. This comes after Western nations, including the UK, banned Russian gold imports in 2022 to curb Moscow’s war financing.

Pattni’s connection to the Goldenberg scandal remains central to his notoriety. In the 1990s, he was accused of masterminding a gold and currency fraud scheme that nearly bankrupted Kenya, implicating senior government officials. A 2006 trial collapsed, and Pattni has since reinvented himself as a self-proclaimed pastor.

According to the US Treasury, Pattni’s ties to former Zimbabwean President Robert Mugabe enabled him to exploit the country’s natural resources for personal gain. ‘This fraudulent scheme robbed Zimbabweans of the benefits of their natural wealth while enriching corrupt officials and criminal networks,’ the Treasury said.

The latest sanctions come as the UK launches a global initiative to tackle corruption. They highlight Pattni’s extensive network, which the US Treasury claims spans multiple countries, facilitating smuggling and money laundering operations.

Pattni is yet to react to the two countries’ actions.

This coordinated effort by the UK and US underscores a growing global crackdown on corruption, shining a spotlight on how illicit gold funds criminal activities and undermines economies.

Credit: Africabriefing