US Ends Zimbabwe Authority, Transitions to Human Rights Sanctions

The U.S. this week repealed its sanctions authority for Zimbabwe and instead announced new designations under its Global Magnitsky human rights program, part of an effort to highlight the people and entities most responsible for abuses and corruption in the country, the Treasury Department said.

The sanctions target three entities and 11 people in Zimbabwe for corruption and human rights abuses, including President Emmerson Mnangagwa, who the Office of Foreign Assets Control said leads a corrupt gold and diamond smuggling network.

Treasury said this “sanctions transition” is a chance for sanctioned parties in Zimbabwe to “acknowledge their responsibility for sanctionable conduct and take steps to correct their behavior.” Deputy Treasury Secretary Wally Adeyemo also said it will help ensure the U.S. is focusing its sanctions on “clear and specific targets,” including Mnangagwa’s “criminal network of government officials and businesspeople.”

The White House on March 4 repealed the previous sanctions authority for Zimbabwe that was first introduced under a 2003 executive order. Order 13288 declared a national emergency and authorized sanctions against members of the Zimbabwean government and others for undermining the country’s “democratic processes.”

The U.S. chose to pivot to its Magnitsky sanctions program as “part of an ongoing effort to ensure we are promoting accountability for serious human rights abuse and corruption in a targeted and strategic manner,” said Adrienne Watson, National Security Council spokesperson. Treasury also said the move is “consistent” with recommendations from its 2021 sanctions review, a monthslong effort detailing the agency’s plan to better coordinate designations with trading partners and establish more modern, effective sanctions regimes (see 2110190044).

“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,” Adeyemo said.

Because the U.S. ended the national emergency that was declared in the 2003 executive order, all parties originally blocked “solely pursuant” to executive orders 13288, 13391 or 13469 will be removed from OFAC’s Specially Designated Nationals and Blocked Persons List, Treasury said March 4. The agency also said “all property and interests in property blocked solely pursuant to the Zimbabwe Sanctions Program will be unblocked today,” and OFAC will remove the Zimbabwe Sanctions Regulations from the Code of Federal Regulations.

OFAC noted that it may still carry out pending or future investigations or enforcement actions involving possible violations of the Zimbabwe Sanctions Regulations if those violations occurred while the national emergency was in effect.

As part of the new sanctions, the agency designated Mnangagwa for his involvement in “corrupt activities” related to gold and diamond smuggling networks. He provides a “protective shield to smugglers to operate” in the country, and has ordered Zimbabwean officials to “facilitate the sale of gold and diamonds in illicit markets, taking bribes in exchange for his services,” OFAC said. Mnangagwa also uses the country’s security services to “violently” repress political opponents and civil society groups.

Along with Mnangagwa, OFAC sanctioned his wife, Auxillia Mnangagwa, for helping her husband’s “corrupt activities.” The agency also designated Zimbabwean businessman Kudakwashe Regimond Tagwirei, his wife, Sandra Mpunga, and their company Sakunda Holdings and its subsidiary Fossil Agro. Obey Chimuka sits on the board of Fossil Agro and also owns Fossil Contracting, which has “facilitated acts of corruption.”

OFAC also sanctioned six Zimbabwe officials: First Vice President Constantino Chiwenga, Defense Minister Oppah Muchinguri, Police Commissioner-General Godwin Matanga and Deputy Commissioner-General Stephen Mutamba, Central Intelligence Organization Deputy Director General Walter Tapfumaneyi and former state security minister Owen Ncube.