Companies Blacklisted in US for Allegedly Backing Mugabe Operate Freely in UK
2008-12-22
Businessmen who have been accused by the US Treasury of
financially supporting the Mugabe regime are operating freely in Britain, in
spite of Gordon Brown's declaration that “enough
is enough” in Zimbabwe.
Of 21 companies put on a US blacklist by President Bush last month, 14 are based
in Britain, two in the Isle of Man, one in Jersey and one in the
British Virgin Islands *1.
The other three are based in the Democratic Republic of Congo, Florida and
Zimbabwe itself.
Top of the list of
alleged Mugabe cronies now under sanction by the US Treasury is the
British-based businessman John Bredenkamp
*2.
Mr Mugabe and his henchmen use a number of ploys to stay in power and live in
luxury as their countrymen suffer. In this they are said to receive the help of
white businessmen, several with British passports, and a number of London-based
companies. The foreign currency that these men bring into the country allows top
Zanu (PF) figures to buy hard currency at the official rate - way below the
currency's true worth - and earn small
fortunes.
“They basically buy real money with worthless Zimbabwean dollars. That way they
can buy a car for what an ordinary person would use to fill a tank with petrol,”
an insider said.
The operations of some British or British-owned companies have also caused
concern. It was reported this year that Foreign Office officials were worried
that the Zimbabwean subsidiary of the London-based Standard Chartered Bank was
violating European Union sanctions. According to inside sources, the Foreign
Office asked the Treasury to make “discreet inquiries” as to whether Standard
Chartered loans to the Zimbabwean Government breached the sanctions.
Standard Chartered Zimbabwe is a subsidiary of Standard Chartered Plc of
Britain. A Foreign Office official was quoted as saying: “I'm still nervous
about the position of other [British-owned] banks [in Zimbabwe], and in
particular Standard Chartered.”
Britain has failed to take action
against individuals and companies while calling for Mr Mugabe to go.
By contrast, the US Treasury
last month named four financier “cronies” - Mr Bredenkamp, Muller Conrad “Billy”
Rautenbach, Nalinee Joy Taveesin and Mahmood Awang Kechik - of Mr Mugabe and put
them on a blacklist, freezing their US assets and banning American citizens from
doing business with them.
The list, issued by America's Office of Foreign Assets Control (OFAC), was
rounded off by the 21, mainly British-based, businesses.
“The financial and logistical support they have provided to the regime has
enabled Robert Mugabe to pursue policies that seriously undermine democratic
processes and institutions in Zimbabwe,” the US Treasury said.
Mr Bredenkamp has been granted indefinite leave to remain in Britain, and
operates some of his businesses from an office in Berkshire.
Mr Bredenkamp, 68, was born in Zimbabwe, then known as Rhodesia, and is one of
the coterie of “Rhodies”, or white Rhodesians with British connections, whose
influence has grown under Mr Mugabe. The US Treasury calls him “a well-known
Mugabe insider involved in various business activities, including tobacco
trading, grey-market arms trading and
trafficking, equity investments, oil distribution,
tourism, sports management, and diamond extraction”.
Mr Bredenkamp's spokesman issued a point-by-point denial, saying: “Breco [a
company he controls] does not trade in tobacco. At 'free' auctions, it purchases
tobacco from the producers and adds value through cigarette manufacturing. Mr
Bredenkamp is a passive investor in ACS,
an accredited agent to major Western defence and aerospace companies
who are regulated by their own governments. ACS does not operate, therefore, in
the grey market.
“Alongside the likes of Shell and BP, who have major networks of petrol retail
outlets in Zimbabwe, Breco supplies petroleum products, purchased from the State
Oil Company by law, to a mere five retail outlets. It also has a small bulk fuel
distribution business whose clients include Unicef.
“Mr Bredenkamp has never been involved in the exploration or extraction of
diamonds.”
In 1993 Mr Bredenkamp made an estimated $100 million selling his Casalee tobacco
company, and set up Breco, a private equity group now on the US blacklist. His
spokesman said: “Mr Bredenkamp recently received notification from the US
Treasury that he was on the OFAC list. He wishes to make it clear that he is
challenging that decision on the grounds that it is based on erroneous
information.”
Mr Bredenkamp strongly disputes any suggestion he gives the regime funds to help
Mr Mugabe to cling to power. His spokesman said: “Just because he is a
Zimbabwean and is based in Zimbabwe and has a business in Zimbabwe does not mean
he provides the Zanu (PF) regime with funds. He employs around 1,500 people in
his businesses in Zimbabwe - their remuneration supports approximately 6,000
people. Is he meant to quit and put all these people out of work?”
The former England spin bowler Phil Edmonds is chairman of the Central African
Mining and Exploration Company (CAMEC), of which the blacklisted Mr Rautenbach
is a shareholder. CAMEC announced its acquisition of an interest in platinum
assets in Zimbabwe in April. As a result, CAMEC inherited an agreement between
Lefever, the company it acquired, to lend
$100 million to the Zimbabwean Government as an advance against future dividends
*3.
“CAMEC is conscious of its responsibility to protect the welfare of its
employees in Zimbawe,” the company told The Times, “and has invested
considerable sums in housing, education and medical projects, not to mention
long-term employment opportunities.” It said it had delayed bringing its
platinum project into production “until the political situation is stabilised
and the platinum price recovers”.
The banks Barclays and Standard Chartered, listed on the London Stock Exchange,
have faced criticism over their subsidiaries operating bank accounts for Mr
Mugabe's close aides. To do so is not illegal, but critics question
the morality of it.
Standard Chartered said: “We have a long-term commitment to the welfare of our
860 staff, their extended families who depend on them and for our many thousands
of customers who rely on our services. Standard Chartered Group makes no money
in Zimbabwe. We comply with all US, UK and EU sanctions. We have been
consistently clear on the morality of keeping our operation open. It's quite
clearly morally the right thing to do.”
Barclays said: “Barclays Bank Zimbabwe is not opening branches and, in fact,
Barclays is not making any new investment in Zimbabwe. Revenue generated in the
country is used only to maintain day-to-day operations, pay staff and keep the
bank running ... Barclays is fully compliant with EU sanctions relating to
Zimbabwe.”
Neither Standard Chartered nor Barclays have been blacklisted by the US
Treasury.
A fortnight ago Mr Brown launched his toughest attack on Zimbabwe. “We must
stand together to defend human rights and democracy, to say firmly to Mugabe
that enough is enough,” he said. However, Britain's sanctions regime against
Zimbabwe is much narrower in scope than America's. It consists largely of
Zimbabwean politicians and public figures, none with any serious stake in the
British economy.
Asked what action Britain would take against Mr Bredenkamp, a spokesman for HM
Treasury told The Times: “We are considering a range of measures with EU
partners in response to the continuing impasse in Zimbabwe, including further
targeted measures. Announcing these prematurely would be ineffective.”
Additional reporting: Jan Raath