US Treasury targets corruption network in Guyana

Jun 12, 2024 News

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– PS Mae Thomas sent on leave as Guyana Govt. opens probe

Kaieteur News – The Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Tuesday said that it is targeting what has been described as a corruption network in Guyana.

According to statement issued via its website, the OFAC has sanctioned members of one of Guyana’s wealthiest families, Nazar Mohamed and his son, Azruddin Mohamed, their companies, Mohamed’s Enterprise, and Hadi’s World and Team Mohamed’s Racing Team. Additionally, OFAC sanctioned embattled Guyanese Permanent Secretary, (PS) Mae Thomas  whose US visa was evoked last year after she was intercepted, questioned and her phone seized while in-transiting in the United States.  Since the official US sanction, she was sent on leave with immediate effect, the Government of Guyana said in a press release.

The trio has reportedly been targeted for their roles in public corruption in Guyana. 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,” he added. 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.

According to the OFAC, 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 department added.

It explained further that Mohamed 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, Azruddin Mohamed ultimately took over Mohamed’s Enterprise, which also now does business as “Confidential Cambio.”

According to the department, Azruddin and Mohamed’s Enterprise allegedly 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 kilograms of gold from import and export declarations and avoided paying more than $50 million in duty taxes to the Government of Guyana,” the US Treasury alleged. It further alleged that: “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 move currency and other items on behalf of Azruddin and Mohamed’s Enterprise,” OFAC alleged.

Further detailing the alleged acts of corruption by the Mohameds, the OFAC claimed that to conceal their illegal activity and operate with impunity, Azruddin and Mohamed’s Enterprise have engaged in extensive bribery schemes involving government officials in Guyana. This, the department said includes providing direct and recurring bribery payments to Guyanese government 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 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 OFAC alleged.

The department went on to note that one such official, “Mae Thomas, was the Permanent Secretary to Guyana’s Minister of Home Affairs from October 2020 through August 2023, and is the current Permanent Secretary of the Ministry of Labour.

While Permanent Secretary to Guyana’s Minister of Home Affairs, the department alleged that Thomas used her position to offer benefits to Mohamed’s Enterprise and Azruddin, among others, in exchange for cash payments and high-value gifts. “Thomas 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. 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,” OFAC outlined.

OFAC has designated 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.

SANCTIONS IMPLICATIONS

As a result of OFAC’s action, the statement noted that 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 authorized by a general or specific license 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.

In addition, OFAC warned 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,” the statement said.

Mae sent on leave

Meanwhile, in a statement, the Government of Guyana said that it has taken careful note of a press release issued by the United States Department of the Treasury, which informed of three Guyanese nationals and entities as being sanctioned by the Department’s Office of Foreign Assets Control.

Based on the information referenced in the press release, the Government said that 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. The Government of Guyana said it takes very seriously the claims contained in the press release and will continue to engage relevant United States entities on these matters. In the meantime, it said the Permanent Secretary of the Ministry of Labour, Ms. Mae 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 Government said in its statement.

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• corruption, gold, Guyana wealthy, sanction, Team Mohamed’s, US Department

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