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By Jeannine Aversa

THE United States on Wednesday imposed financial sanctions on Zimbabwe's intelligence chief, President Robert Mugabe's nephew, as well as two companies accused of undermining democracy in the southern African country.

The US Treasury Department's action means that any bank accounts or other financial assets found in the United States that belong to those designated must be frozen. Americans are also forbidden from doing business with them.

The move marks the US government's latest initiative to apply more financial pressure on Zimbabwe's Robert Mugabe, who over the years has become increasingly authoritarian, spearheading media control and takeovers of white-owned farms.

The United States recently criticised Mugabe for abruptly setting presidential and parliamentary elections for March 29, earlier than expected. That was viewed as a way to avert political conciliation.

The opposition Movement for Democratic Change had demanded constitutional and electoral reforms before the election and said polling should be delayed until June to allow for its demands to be met.

"The US financial system is closed to Robert Mugabe, his cohorts and their businesses," said Adam Szubin, director of Treasury's Office of Foreign Assets Control, the agency that administers and enforces financial sanctions.

"Today's designations are part of an increased effort to pressure those who are aiding Mugabe's efforts to cripple Zimbabwe, including through violence and intimidation."

The US order on Wednesday covers two people - Happyton Bonyongwe, director of Zimbabwe's Central Intelligence Organisation, and Leo Mugabe, the president's nephew and MP for Makonde.

Also covered are two Zanu PF companies - ZIDCO Holdings and Jongwe Printing and Publishing Co. The US alleges that both entities are owned or controlled by "key components of the Mugabe regime" that have previously been put on the United States financial sanctions list. The department provided no further details. - AP

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