–VP Jagdeo says gov’t launching full investigation into matters highlighted by the US
IN order to safeguard Guyana’s financial system and comply with the recently imposed United States (US) sanctions on businessmen, their entities and an official, the cambio licence of the Mohameds has been revoked.
“Members of the Public are hereby advised of the revocation of the licence of Confidential Cambio, situated at Lot 29 Lombard Street Werk-en-Rust, Georgetown in accordance with the Dealers in Foreign Currency (Licensing) Act 1989. As a consequence, the entity is no longer authorized to conduct the business of buying and selling of foreign currency,” the Bank of Guyana said in a statement on Thursday.
Vice-President Dr. Bharrat Jagdeo, in his take on this matter during a press conference at the Office of the President, said the claims by the US Department of the Treasury Office of Foreign Assets Control (OFAC) against three Guyanese nationals is being treated with the utmost seriousness.
On Tuesday, the OFAC sanctioned father and son, Nazar Mohamed and Azruddin Mohamed, respectively, their company, Mohamed’s Enterprise, and the Permanent Secretary (PS) of the Ministry of Labour (MoL) Mae Thomas, for their alleged roles in public corruption.
According to Vice-President Jagdeo, the Central Bank and the Financial Intelligence Unit (FIU) have been tasked with preparing a report outlining the implications of the sanctions on Guyana’s financial system.
“We want to safeguard our financial system,” he firmly said, adding: “The Central Bank has notified us that they’ve already indicated to the Mohameds that they will cancel their cambio licence, because that’s part of the financial system.”
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.
“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.
