-Gov’t sends PS on leave with immediate effect, pledges to work with US entities to investigate allegations

IN response to the sanction imposed by the United States Department of the Treasury Office of Foreign Assets Control (OFAC) on three Guyanese individuals, the Government of Guyana (GoG) is actively communicating with the relevant US entities regarding the significant allegations made.
On Tuesday, the OFAC sanctioned father and son, Nazar Mohamed, and Azruddin Mohamed, respectively, their company Mohamed’s Enterprise, and a Permanent Secretary (PS) of the Ministry of Labour (MoL), Mae Thomas, for their alleged roles in public corruption.
Additionally, OFAC designated two other entities, Hadi’s World and Team Mohamed’s Racing Team, for being owned or controlled by Mohamed’s Enterprise and the son, respectively. As a result of the allegations, the GoG said that the Ministry of Finance and relevant statutory agencies, including the Guyana Revenue Authority, will be requesting additional information on the matters highlighted, with a view to aiding local law-enforcement agencies.
In the meantime, PS Thomas has been sent on leave with immediate effect.
“The Government of Guyana will continue to work with the United States government on all matters of mutual interest, including the respect for the rule of law and order,” the release read.
Further, US State Department Spokesman Matthew Miller said that between 2019 and 2023, Mohamed’s Enterprise omitted more than 10,000 (10 thousand) kilogrammes of gold from import-and-export declarations and avoided paying more than US$50 million in duty taxes to the GoG.
“Today’s actions support the U.S. Strategy on Countering Corruption which identifies the fight against corruption as a national security priority.  The United States is committed to exposing corruption and promoting accountability for corrupt acts worldwide.  We will continue to use the tools at our disposal to protect our financial system from abuse by corrupt actors,” he said.

PROTECTING GUYANA
According to the statement by the OFAC: “These individuals and entities are sanctioned pursuant to Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world.
“Today’s action underscores our commitment to holding accountable those who seek to exploit Guyana’s underdeveloped gold sector for personal gain,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “Treasury, in close coordination with our partners in U.S. law enforcement, will continue to take action to safeguard the U.S. financial system from abuse by corrupt actors.”
It was further stated that these actions were conducted in coordination with Homeland Security Investigations New York Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force, Diplomatic Security Service, Customs and Border Protection (CBP) Office of Intelligence – New York Operations, and the Federal Bureau of Investigation’s Miami Field Office, with assistance from HSI Miami, CBP Miami and New York Field Offices, New York City Police Department Intelligence Bureau, and the Drug Enforcement Administration.

THE MOHAMEDS’ ABUSE OF GUYANA’S GOLD INDUSTRY
Within the statement, the OFAC highlighted that gold is one of Guyana’s main exports, but it remains a highly fractured industry with small-scale gold-mining operations in Guyana occupying a majority share of the country’s gold production.
“These small, family-owned businesses have informal relationships with larger purchasers and traders like Mohamed’s Enterprise. Once mined, Guyanese gold is sold and traded throughout international markets, including the United States, Canada, the United Arab Emirates, and the European Union,” the OFAC stated.
The statement further outlined that Nazar founded Mohamed’s Enterprise in Guyana before expanding to the United States as a moneychanger and transitioned into gold trading, growing Mohamed’s Enterprise into one of Guyana’s largest gold exporters. In time, the son, Azruddin ultimately took over Mohamed’s Enterprise, which also now does business as “Confidential Cambio.”
The statement then read: “Azruddin and Mohamed’s Enterprise evaded Guyana’s tax on gold exports and defrauded the Guyanese government of tax revenues by under-declaring their gold exports to Guyanese authorities. Between 2019 and 2023, Mohamed’s Enterprise omitted more than 10 thousand kilogrammes of gold from import-and-export declarations and avoided paying more than US$50 million in duty taxes to the Government of Guyana.
“Mohamed’s Enterprise has bribed customs officials to falsify import-and-export documents, as well as to facilitate illicit gold shipments. Mohamed’s Enterprise had paid bribes to Guyanese government officials to ensure the undisrupted flow of inbound and outbound personnel that[sic] move currency and other items on behalf of Azruddin and Mohamed’s Enterprise.”
In addition, Azruddin is the principal and owner of Team Mohamed’s Racing Team, a drag- racing organisation in Guyana. Hadi’s World is a Guyana-based subsidiary of Mohamed’s Enterprise.

MOHAMED’S CORRUPTION ENABLED BY GUYANESE OFFICIALS
According to OFAC, Azruddin and Mohamed’s Enterprise have engaged in extensive bribery schemes involving government officials in Guyana, such as providing direct and recurring bribery payments to officials to ensure favourable treatment in criminal or civil matters that would otherwise suggest their involvement in illegal criminal activity.

“In return, corrupt officials receive[d] cash and gifts for incidents that are overlooked. Additionally, Mohamed’s Enterprise has paid bribes to corrupt Guyanese government officials to facilitate the award of government contracts,” the statement read.
PS Thomas, who previously served at the Ministry of Home Affairs, was cited in the statement.
“A corrupt Permanent Secretary could manipulate procurement processes to suit their preferred bidder by providing inside information at the early stages of evaluation. Access to a Permanent Secretary of any Ministry could afford contractors insight into upcoming projects and bid values. Permanent Secretaries can act as the legal authority to sign contracts on behalf of their ministry,” the OFAC said.
It was said that Thomas used her stint at the Home Affairs Ministry to offer benefits to Mohamed’s Enterprise and Azruddin, among others, in exchange for cash payments and high-value gifts and she misused her position to influence the award of official contract bids and the approval processes for weapons permits and passports on behalf of Mohamed’s Enterprise.

“OFAC is designating Azruddin and Mohamed’s Enterprise for being persons who have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery, that is conducted by a foreign person,” the statement read.
The OFAC also designated Nazar for being a foreign person who is or has been a leader or official of Mohamed’s Enterprise, an entity whose property and interests in property are blocked pursuant to E.O. 13818, as a result of activities related to Nazar’s tenure.
Team Mohamed’s Racing Team was also designated for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Azruddin.
Adding to the designation by the OFAC was Hadi’s World for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Mohamed’s Enterprise.
“OFAC is designating Thomas for being a foreign person who is a current or former government official, or a person acting for or on behalf of such an official, who is responsible for or complicit in, or has directly or indirectly engaged in, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery,” the statement read.

SANCTIONS IMPLICATIONS
“As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorised by a general or specific licence issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons,” the statement read.
According to the OFAC, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person.
It was said that the ultimate goal of sanctions is not to punish, but to bring about a positive change in behaviour.