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 Treasury Designates Seven Entities as Specially Designated Nationals of Zimbabwe


3/2/2004

FROM THE OFFICE OF PUBLIC AFFAIRS

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The Department of the Treasury today announced the designation of seven Zimbabwean entities, three commercial farms and four businesses, as Specially Designated Nationals (SDNs) of Zimbabwe.

"Today's action illustrates the Bush Administration's commitment to condemn those who threaten the democratic process and institutions in Zimbabwe by isolating and exposing them and the entities they own and control," said Juan Zarate, the U.S. Treasury Department's Deputy Assistant Secretary for the Executive Office of Terrorist Financing and Financial Crimes.

The farms, owned by Jonathan Moyo, Minister of Information of Zimbabwe, are among those that were passed on to favored members of the Mugabe regime following his chaotic land redistribution scheme. The four other businesses designated today include:

  • M & S Syndicate (Pvt) Ltd., an influential Zimbabwean holding company owned by the ruling Zimbabwe African National Union-Patriotic Front (ZANU-PF). M&S Syndicate (Pvt) Ltd. is controlled by SDN Emmerson Mnangagwa, Parliamentary Speaker of Zimbabwe, and four other prohibited officials;
  • Zimbabwe Defence Industries (Pvt) Ltd., a government-owned manufacturer and distributor of arms, ammunition and other military-related items;
  • Swift Investments (Pvt) Ltd., which operates miscellaneous retail stores; and
  • Zvinavashe Investments (Pvt) Ltd., which manufactures transportation equipment.

Zimbabwe Defence, Swift Investments and Zvinavashe are controlled by the retired Zimbabwe Defense Forces General, Vitalis Zvinavashe.

Each of the seven entities is controlled by one or more key members of the Mugabe regime that were named as prohibited persons in the Annex to Executive Order 13288. This Order imposes economic sanctions on persons who undermine democratic processes and institutions in Zimbabwe. The President of Zimbabwe, Robert Gabriel Mugabe, and 76 other Zimbabwean government officials and persons of influence are included in the Annex.

Executive Order 13288 provides for the blocking of properties within U.S. jurisdiction or the possession or control of U.S. persons in which the SDNs have an interest. Blocked properties are denied access to the U.S. financial system.

The Treasury Department's Office of Foreign Assets Control (OFAC) worked in close consultation with the U.S. State Department in the designation of these seven entities. Treasury will continue working closely with the State Department in implementation of Executive Order 13288 to disrupt the efforts of those who disregard democracy.

Doing business with an SDN of Zimbabwe may carry criminal penalties of up to $500,000, twice the monetary gain or loss per violation for an organization. Individual criminal penalties may be up to $250,000 or twice the monetary gain or loss per violation. Individuals may also face imprisonment for up to ten years for a criminal violation. In addition, civil penalties of up to $11,000 per violation may be imposed administratively.

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