The United States on Monday terminated the Zimbabwe sanctions program and Treasury imposed fresh restrictive measures and tightened them on President Emmerson Mnangagwa, his wife, Auxilia, and others said to be violating people’s rights and engaging in corruption.
In a statement, President Joseph Biden signed an Executive Order (E.O.) terminating the national emergency with respect to Zimbabwe and revoking the executive orders that have authorized Zimbabwe-specific sanctions. As a result, the economic sanctions administered by the Office of Foreign Assets Control (OFAC), pursuant to the Zimbabwe sanctions program are no longer in effect.
Concurrently, the Department of the Treasury’s Office of Foreign Assets Control announced that it has designated 11 individuals, including Mnangagwa and three entities for their involvement in corruption or serious human rights abuses as per executive order E.O. 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act.
This transition to sanctions under the Global Magnitsky Program, consistent with recommendations in Treasury’s 2021 Sanctions Review, emphasizes the United States’ commitment to promoting accountability for corrupt and abusive networks restricting the political rights and economic resources of the people of Zimbabwe, read part of the statement.
Apart from Mnangagwa and his wife, others on the sanctions list are Vice President Constantino Chiwenga, police commander Godwin Matanga and his deputy Stephen Mutamba, Defence Minister Oppah Muchinguri Kashiri, Sakunda Holdings proprietor Kudakwashe Tagwirei and his wife Sandra Mpunga, director of Fossil Fuel Obey Chimuka, Central Intelligence Organization deputy director Walter Tagwirei and Midlands governor Owen Muda Ncube.
In the statement, deputy secretary of the treasury Wally Adeyemo is quoted as saying the United States remains deeply concerned about democratic backsliding, human rights abuses, and government corruption in Zimbabwe.
Adeyemo said, “The changes we are making today are intended to make clear what has always been true: our sanctions are not intended to target the people of Zimbabwe. Today we are refocusing our sanctions on clear and specific targets: President Mnangagwa’s criminal network of government officials and businesspeople who are most responsible for corruption or human rights abuse against the people of Zimbabwe. These changes to our approach provide an opportunity for the government of Zimbabwe to undertake key reforms to improve its record on human rights, good governance, and anti-corruption. Consistent with the findings of Treasury’s 2021 sanctions review, we are committed to the use of economic sanctions towards a clear and specific objective, in coordination with diplomacy and other tools of statecraft.”
The termination of the national emergency declared in Executive Order (E.O.13288) and two other renewed orders, according to the statement, means that all persons blocked under the restrictive measures will be removed Monday from OFAC’s Specially Designated Nationals and Blocked Persons (SDN) List; all property and interests in property blocked solely pursuant to the Zimbabwe Sanctions Program will be unblocked; and OFAC will remove the Zimbabwe Sanctions Regulations from the Code of Federal Regulations.
“Pending or future OFAC investigations or enforcement actions related to apparent violations of the Zimbabwe Sanctions Regulations that occurred while the national emergency was in effect may still be carried out.”
OFAC said as a result of Monday’s Global Magnitsky action, all property and interests in property of the designated persons that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC.
“In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.
“In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person.”
Reacting to the removal of some restrictive measures and subsequent imposition of sanctions on Mnangagwa and others, ZANU PF communications director Farai Marapira said the move is retrogressive and undermines Zimbabwe’s development.
“These sanctions should be removed. They are destroying Zimbabwe,” said Marapira.
Independent political and economic commentator Stevenson Dlamini of the National University of Science and Technology said the restrictive measures though designed to encourage Zimbabwe to transition to democratic ethos, “can derail certain programs including corporation among banks in our country and USA.”
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