Maravi

(HERALD) Sanctions: US blocks couple's US$30 000

Sanctions: US blocks couple's US$30 000
Wednesday, 09 March 2011 20:15

THE United States Treasury Department has blocked the transfer of US$30 000 to Chinhoyi Municipality by a United Kingdom-based couple, saying Zimbabwe is under sanctions.

This latest direct infringement on individuals' economic activities flies in the face of claims that the sanctions are targeted at certain people in Zimbabwe and not the generality of the populace.

The Government has since launched a National Anti-Sanctions Petition Campaign that seeks to tell the West that the majority of Zimbabweans do not support the embargo.

A letter from the US Treasury dated January 25, 2011 (case number ZI-428) which is in The Herald's possession said the transfer was blocked because Chinhoyi Municipality's banker, ZB Bank, is particularly specified by the Office of Foreign Assets Control.

Mr Brian Hopper and his wife - who have business interests in Zimbabwe - intended to buy plots at Strathcona Farm in Chinhoyi and made arrangements to pay for them through a transfer from HSBC Bank Plc.

They made a transfer application on December 13, 2010 for the release of the money, but it was turned down by the Office of Foreign Assets Control.

A Treasury section chief, Jeanette A Jaeggi, said: "This letter responds to your application of December 13, 2010, to the Office of Foreign Assets requesting the release of the following blocked funds transfer:

Originator: Mr. B Hopper, Hemingbrough, Selby Originating Bank: HSBC Bank Plc Value Date: 12-Nov-10
Amount: US$30 000-00
Beneficiary Bank: ZB Bank Ltd

Beneficiary: MOC Estate, Town Clerk Municipality of Chinhoyi, Zimbabwe.
"HSBC properly blocked this transfer pursuant to US sanctions administered by the OFAC."

The letter goes on to state that under the regulations, a US financial institution is required to "block all wire transfers in which a sanctions target has an interest and that come within the institution's possession or control, even if the institution is an intermediary and an underlying transaction does not otherwise involve a person subject to US jurisdiction."

The money is held in an interest bearing account, but Mr Hopper is prohibited from engaging in any transaction in the property or from exercising any rights, po-wers or privileges in respect of such a property without authorisation from OFAC.

"Once a wire transfer has been blocked, OFAC does not recognise attempts to extinguish the interest of the sanctions target in the transfer by, for example, cancelling the original payment instructions or effecting a second payment to the beneficiary."

Chinhoyi Municipality director of finance Mr William Mandinde confirmed the matter and said blocking such funds seriously affected residents, who counted on the local authority for proper service delivery.

"That money would have gone a long way in alleviating some of the problems we are facing as a council. We were looking forward to having the money as we had already factored it into our plans for the development of the town," he said.

A US-based company recently denied a Chinhoyi University student computer software that she wanted to use for her studies because Zimbabwe is under sanctions.

A few years ago, Africa University indicated it had also had problems with Microsoft, which said it could not supply certain software and programmes because of sanctions on Zimbabwe.

Zimbabweans cannot open accounts with PayPal, an online facility incorporating some 100 million individuals and companies.

PayPal - which is based in the US and allows members to trade over the Internet - says the US Treasury advised them not to open accounts for Zimbabweans in Zimbabwe.

Last week, President Mugabe launched the National Anti-Sanctions Petition Campaign.
The petition seeks at least two million signatures of Zimbabweans opposed to the embargo.

Sadc, the African Union and Comesa, among other progressive international groupings, have all condemned the sanctions for their impact on ordinary Zimbabweans.

Labels: SANCTIONS

posted by MrK @ 2:53 PM