August 3, 2005
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Treasury Designates Twenty-Six Entities Tied to the Mugabe Regime

The U.S. Department of the Treasury today designated twenty-six Zimbabwean entities – 24 commercial farms and two businesses – controlled by key members of the Mugabe regime.  This designation is pursuant to Executive Order 13288, which is aimed at blocking the property of persons undermining democratic processes in Zimbabwe.

"The Mugabe regime rules through politically motivated violence and intimidation and has triggered the collapse of the rule of law in Zimbabwe," said Robert Werner, Director of the Treasury's Office of Foreign Assets Control (OFAC).  "By denying the Mugabe regime access to the U.S. financial system and U.S. persons, we're cutting off the flow of support they could use to further destabilize Zimbabwe."

The commercial farms are among those handed to favored members of Zimbabwean President Robert Gabrial Mugabe's regime following his chaotic land redistribution scheme.  The two other businesses designated today include: Cold Comfort Farm Trust Co-Operative, an agricultural cooperative controlled by Didymus Noel Mutasa, Minister of National Security; and Ndlovu Motorways, which is controlled by Sikhanyiso Ndlovu.  Both Mutasa and Ndlovu were listed in the Annex of E.O. 13288.

E.O. 13288 imposes economic sanctions on persons who undermine democratic processes and institutions in Zimbabwe.  Included in the Annex are President Mugabe, and 76 other Zimbabwean government officials and persons of influence.  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, and it also denies them access to the U.S. financial system.

Today's designation is the result of close cooperation between OFAC and the U.S. State Department.  The Departments of Treasury and State will continue to utilize the authorities under E.O. 13288 to financially isolate those disrupting democracy in Zimbabwe.  Today's action brings the total number of designations under E.O. 13288 to 110 individuals and entities.
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. 

Click here for a complete list of the entities designated today: http://www.treas.gov/offices/enforcement/ofac/actions/

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