When the news broke that the US Department of Treasury has imposed sanctions on Nazar Mohamed, his son Azruddin Mohamed, and Permanent Secretary Mae Thomas, it was just one month shy of a year that the first news report indicating that investigations into the Mohameds business dealings were ongoing, came to light. The Reuters report stated that the Mohameds were under investigation for allegedly engaging in public corruption in Guyana. The public's reactions ranged from bemusement to outrage. Unsurprisingly, social media feeds were abuzz with pundits giving their views on this development. Many innocent until proven guilty phrases were tossed around. Except that such sanctions do not actually mean that neither the Mohameds nor Thomas will necessarily see the inside of a courtroom.
Rather, these sanctions are in effect financial black-balling. In layman’s terms, the reality is any and all businesses in which they are involved, will no longer be viable in a manner of speaking. By dint of the Mohameds being awarded various government of Guyana contracts, the implications and gravity of the situation is far worse than it initially seemed.
What does it mean when the Office of Foreign Assets Control (OFAC) adds individuals to the Specially Designated Nationals and Blocked Persons List and they have Global Magnitsky designations?
It means that persons and entities named can no longer legally conduct any type of business. Therefore, all of their current businesses are stymied and they cannot start any new businesses while under sanction. Specifically, with respect to banking transactions, the licenses are affected. Under the law, any payment or transfer involving funds or credit related to a blocked person must be restricted by US financial institutions. Prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked persons or the receipt of any contribution or provision of funds, goods or services from any such person. (2022 Global Magnitsky Human Rights Accountability Act Annual Report)
Following the adding of the Mohameds and Thomas to the list, any and everyone who has business arrangements with them, has thirty days to wrap up said arrangements. For the violation of regulations, persons are likely to face hefty fines to the tune of USD 368,136, or twice the transaction’s value. Further, willful violations can result in fines of up to USD1M or imprisonment for not more than twenty years.
This means that every bank in Guyana and overseas which does business with the Mohameds and Thomas have to immediately terminate relations with them. In other words, none of them are eligible any longer to possess bank accounts. All credit card companies have to also sever ties with them. We seem not to have grasped the full extent of and the repercussions of the sanctions. The enforcement of the sanctions means that every bank account, whether personal and business is embargoed. In other words all monies are in limbo. Not only are the Mohameds and Thomas unable to access accounts, but the banks are also prohibited from returning their money. Their credit cards are now literally worthless pieces of plastic.
Additionally, all their insurance policies have been cancelled. The shiny Ferrari and the heavily undervalued Lamborghini, with a declared value of USD200,000, as opposed to its USD700,000.00 value, can no longer be driven legally on the roads of Guyana. It would seem that they will now have to be chauffeured by someone else in that person’s ordinary vehicle without the special safety enhancements. In this vein, they also have no home and other property insurance, or life insurance for that matter. With respect to various rental properties, no international companies operating in Guyana can rent these. This is also applicable to land at Rome, East, Bank Demerara that is reportedly leased by an oil and gas company for use as a stockyard.
Unfortunately, there will be many who will fall victim to unintended consequences. For instance, the employees at its Confidential Cambio are likely jobless following the immediate revocation of the licence to operate. The multistory City Mall in Georgetown, also owned by the Mohameds’, is now an uninsured edifice. The renters of storefronts in the mall, now remain there at their own risk. Should there be any type of loss, they are literally on their own. Particularly, as the Mohameds are under no obligation to indemnify them. Being Guyana, it is doubtful that the individual renters have insurance. So that may be the saving grace for the mall remaining operational. For if the tenants had all been paying renters insurance, their policies too would have been in jeopardy. However, going forward, all rents will have to be paid in cash. If there are franchises of foreign owned companies such as Digicel or Royal Castle for example, they now have to look for alternative business space.Two days post sanctions, the Bank Of Guyana issued a notice stating that with immediate effect, the Mohameds Cambio licence was revoked. The Confidential Cambio was reportedly the largest supplier of foreign currency to Guyana’s banks. In fact, a Stabroek News article dated June 7, 2024, stated that Central Bank made a USD 80 million injection into the foreign currency market. This begs the question how much of that did the Confidential Cambio supply?
Following suit, the Geology and Mines Commission publicly advised sellers and buyers of gold to only conduct business with licensed traders or face criminal prosecution. However, no mention was made with respect to quarry license, which allows that entity to mine stone. One week later after the sanctions were imposed, the Team Mohamed social media page continues to post Azruddin Mohamed visiting various parts of Guyana giving handouts. Whether or not he continues to drive without insurance, or he’s being driven by someone in his uninsured vehicles, is anyone’s guess. The bigger question is enforcement. Will traffic ranks of the Guyana Police Force stop any of Mohameds' easily recognisable vehicles? The foregoing is questionable since the GPF too, has been direct beneficiaries of the Mohameds largesse. In December 2022, the media reported that uniformed ranks were observed queued in large numbers outside Mohameds Lombard Street head office to collect “free” money. Following that incident, members of civil society had called for Hicken’s resignation, as that was viewed as highly improper and as bribery. A call which went unheeded. There was also an instance, where the younger Mohamed, a civilian, was involved in a high stakes robbery take down. The police force was also the recipient of five computers and two scanners from them. Therefore, the local media ought to enquire of Commissioner of Police Clifton Hicken as to how breaches of the law will be addressed. Will ranks be informed, or will laws be broken with impunity?
Owing to the fact that the Mohameds fraternise with, and are connected to high-ranking government officials, including President Irfan Ali, this raises several issues including that of complicity. Yes, PS Thomas fell on her sword and even resigned from the ruling PPP’s Central Executive Committee. However, the reality is that Thomas was not a law unto herself and could not operate entirely act in a vacuum. Certainly, it is not the culture/practice of governments in Guyana, to encourage operating independently. There is always an eminence grise behind the scene. Additionally, Azruddin Mohamed is not shy and posted photographs with Ali, many government ministers, as well as senior public servants, including top central bank officials. Although being Guyana, these associations, could very well affect the enforcement of sanctions. However, it would behoove all involved to bear in mind that Big Brother is watching.
Notably, such fraternisations were not limited to the current administration. In fact, two senior members of the former APNU government, were on a hunting trip with Azruddin Mohamed, when an endangered deer was killed. Reports are that subsequently, an international organisation brought the incident to then President Granger’s attention. Also photographed on different occasions with the younger Mohamed, is the other sanctioned party PS Thomas and her husband. Given the foregoing, there is no telling who may, or may not have been compromised by way of gifts and favours etc. The trouble is that the PPP government has to be careful in doing its part to ensure the requirements of the sanctions are met. I say this because of the country’s standing with respect to international financial regulations and anti-money laundering laws. Guyana cannot afford to be on the black list of Financial Action Task Force ( FATF). Once a country is blacklisted, it means that FATF member states and other international bodies will likely impose economic penalties and other restrictive measures. There are rigorous audits and strict compliance requirements which, have to be met. Failing this would have a huge negative impact on our fledgling oil industry and concomitant development.
It was in July 2023, that the publishing of a special report by international news agency Reuters captioned “ US probing Exxon contractor in Guyana for smuggling drugs, gold,” was a clear harbinger of things to come. At the time of the report, the Mohameds, were partners in the construction of a USD300M onshore logistics base for Exxon’s offshore oil operation. Reuters stated that Exxon was repeatedly warned by US Government officials in 2021 and again in 2022, not to engage in any business activities with the Mohameds. Despite the warnings, Exxon awarded them the contract in April 2022. That initial report also clearly indicated that the US was considering sanctioning them. Reuters indicated too that the Mohameds are under active investigation by the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI) and the Department of Homeland Security, as well as other agencies for the alleged smuggling of Colombian cocaine and illegally mined Venezuelan gold into the US. Additionally, the father and son are also suspected of money laundering for drug traffickers and criminals, including sanctioned Russians operating in the region.
Following the announcement of the sanctions, the US Ambassador to Guyana, Nicole Theriot stated that investigations took place over the course of two and a half years.
These claims have been vehemently denied by the businessmen. However, after the Reuters report, in October 2023, it was announced that Nazar Mohamed had withdrawn from the NRG consortium contracted to build the logistics shore base. The other partners of NRG are Andron Alphonso and Nicholas Deygoo-Boyer. Subsequent to his withdrawal, Nazar Mohamed was reported by the media to have said that his withdrawal was based on “religious beliefs.”
It would be interesting to know the total number of projects the PPP Government has awarded the Mohameds along with their states of completion. Since the Mohamed companies will no longer be able to fulfill its contractual obligations, this speaks to the dangers of engaging in a form of nepotism in the tender process. Now, not only money, but time will be lost and of course the Guyanese tax payers will be the ones bearing the brunt of the fallout.
Last by but by no means least is what I will term the Escobar phenomenon that appears to presently exist in Guyana. Approximately three years ago, the inundation of social media and to a lesser extent the main stream media began with reports on the sustained works of charity began. As the frequency of the donations grew, Azruddin Mohamed began to take on the appearance of a man of the people and for the poor of Guyana. Basic houses were built, donations were made to start up businesses, equipment was donated to the Visit Guyana host, and even motor vehicles and outboard engines were donated to a few people. In 2015, a donation of G$1M was made to City Hall to assist with improving the cleanliness of Georgetown. Donations were frequently made to schools mostly in ALL SKIN TEETH NUH LAUGH
When the news broke that the US Department of Treasury has imposed sanctions on Nazar Mohamed, his son Azruddin Mohamed, and Permanent Secretary Mae Thomas, it was just one month shy of a year that the first news report indicating that investigations into the Mohameds business dealings were ongoing, came to light. The Reuters report stated that the Mohameds were under investigation for allegedly engaging in public corruption in Guyana. The public's reactions ranged from bemusement to outrage. Unsurprisingly, social media feeds were abuzz with pundits giving their views on this development. Many innocent until proven guilty phrases were tossed around. Except that such sanctions do not actually mean that neither the Mohameds nor Thomas will necessarily see the inside of a courtroom.
Rather, these sanctions are in effect financial black-balling. In layman’s terms, the reality is any and all businesses in which they are involved, will no longer be viable in a manner of
speaking. By dint of the Mohameds being awarded various government of Guyana contracts, the implications and gravity
of the situation is far worse than it initially seemed.
What does it mean when the Office of Foreign Assets Control (OFAC) adds individuals to the Specially Designated Nationals and Blocked Persons List and they have Global Magnitsky designations?
It means that persons and entities named can no longer legally conduct any type of business. Therefore, all of their current businesses are stymied and they cannot start any new businesses while under sanction. Specifically, with respect to banking transactions, the licenses are affected. Under the law, any payment or transfer involving funds or credit related to a blocked person must be restricted by US financial institutions. Prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked persons or the receipt of any contribution or provision of funds, goods or services from any such person. (2022 Global Magnitsky Human Rights Accountability Act
Annual Report)
Following the adding of the Mohameds and Thomas to the list, any and everyone who has business arrangements with them, has thirty days to wrap up said arrangements. For the
violation of regulations, persons are likely to face hefty fines to the tune of USD 368,136, or twice the transaction’s value. Further, willful violations can result in fines of up to USD1M or imprisonment for not more than twenty years.
This means that every bank in Guyana and overseas which does business with the Mohameds and Thomas have to immediately terminate relations with them. In other words,
none of them are eligible any longer to possess bank accounts. All credit card companies have to also sever ties with them. We seem not to have grasped the full extent of and the repercussions of the sanctions. The enforcement of the sanctions means that every bank account, whether personal and business is embargoed. In other words all monies are in limbo. Not only are the Mohameds and Thomas unable to access accounts, but the banks are also prohibited from returning their money. Their credit cards are now literally worthless pieces of plastic.
Additionally, all their insurance policies have been cancelled. The shiny Ferrari and the heavily undervalued Lamborghini, with a declared value of USD200,000, as opposed to its
USD700,000.00 value, can no longer be driven legally on the roads of Guyana. It would seem that they will now have to be chauffeured by someone else in that person’s ordinary vehicle
without the special safety enhancements. In this vein, they also have no home and other property insurance, or life insurance for that matter. With respect to various rental properties, no international companies operating in Guyana can rent these. This is also applicable to land at Rome, East, Bank Demerara that is reportedly leased by an oil and gas company for use as a stockyard.
Unfortunately, there will be many who will fall victim to unintended consequences. For
instance, the employees at its Confidential Cambio are likely jobless following the immediate revocation of the licence to
operate. The multistory City Mall in Georgetown, also owned by the Mohameds’, is now an uninsured edifice. The renters of storefronts in the mall, now remain there at their own risk. Should there be any type of loss, they are literally on their own. Particularly, as the Mohameds are under no obligation to indemnify them. Being Guyana, it is doubtful that the individual renters have insurance. So that may be the saving grace for the mall remaining operational. For if the tenants had all been paying renters insurance, their policies too would have been in jeopardy. However, going forward, all rents will have to be paid in cash. If there are franchises of foreign owned companies such as Digicel or Royal Castle for example, they now have to look for alternative business space.Two days post sanctions, the Bank Of Guyana issued a notice stating that with immediate effect, the Mohameds Cambio licence was revoked. The Confidential Cambio was reportedly the largest supplier of foreign currency to Guyana’s banks. In fact, a Stabroek News article dated June 7, 2024, stated that Central Bank made a USD 80 million injection into the foreign currency market. This begs the question how much of that did the Confidential Cambio supply?
Following suit, the Geology and Mines Commission publicly advised sellers and buyers of gold to only conduct business with licensed traders or face criminal prosecution. Their trading licence too has been withdrawn. However, no mention was made with respect to quarry license, which allows that entity to mine stone. One week later after the sanctions were imposed, the Team Mohamed social media page continues to post Azruddin Mohamed visiting various parts of Guyana giving handouts. Whether or not he continues to drive without insurance, or he’s being driven by someone in his uninsured vehicles, is anyone’s guess. The bigger question is enforcement. Will traffic ranks of the Guyana Police Force stop any of Mohameds' easily recognisable vehicles? The foregoing is questionable since the GPF too, has been direct beneficiaries of the Mohameds largesse. In December 2022, the media reported that uniformed ranks were observed queued in large numbers outside Mohameds Lombard Street head office to collect “free” money. Following that incident, members of civil society had called for Hicken’s resignation, as that was viewed as highly improper and as bribery. A call which went unheeded. There was also an instance, where the younger Mohamed, a civilian, was involved in a high stakes robbery take down. The police force was also the recipient of five computers and two scanners from them. Therefore, the local media ought to enquire of Commissioner of Police Clifton Hicken as to how breaches of the law will be addressed. Will ranks be informed, or will laws be broken with impunity?
Owing to the fact that the Mohameds’ fraternise with, and are connected to high-ranking government officials, including President Irfan Ali, this raises several issues including that of
complicity. Yes, PS Thomas fell on her sword and even resigned from the ruling PPP’s Central Executive Committee. However, the reality is that Thomas was not a law unto herself and could not operate entirely act in a vacuum. Certainly, it is not the culture/practice of governments in Guyana, to encourage operating independently. There is always an eminence grise behind the scene. Additionally, Azruddin Mohamed is not shy and posted photographs with Ali, many government ministers, as well as senior public servants, including top central bank officials. Although being Guyana, these associations, could very well affect the enforcement of sanctions. However, it would behoove all involved to bear in mind that Big Brother is watching. Notably, such fraternisations were not limited to the current administration. In fact, two senior members of the former APNU government, were on a hunting trip with Azruddin Mohamed, when an endangered deer was killed. Reports are that subsequently, an international organisation brought the incident to then President Granger’s attention. Also photographed on different occasions with the younger Mohamed, is the other sanctioned party PS Thomas and her husband. Given the foregoing, there is no telling who may, or may not have been compromised by way of gifts and favours etc. The trouble is that the PPP government has to be careful in doing its part to ensure the requirements of the sanctions are met. I say this because of the country’s standing with respect to international financial regulations and anti-money laundering laws. Guyana cannot afford to be on the black list of Financial Action Task Force ( FATF). Once acountry is blacklisted, it means that FATF member states and other international bodies will likely impose economic penalties and
other restrictive measures. There are rigorous audits and strict compliance requirements which, have to be met. Failing this would have a huge negative impact on our fledgling oil
industry and concomitant development.
It was in July 2023, that the publishing of a special report by international news agency Reuters captioned “ US probing Exxon contractor in Guyana for smuggling drugs, gold,” was a clear harbinger of things to come. At the time of the report, the Mohameds, were partners in the construction of a USD300M onshore logistics base for Exxon’s offshore oil operation. Reuters stated that Exxon was repeatedly warned by US Government officials in 2021 and again in 2022, not to engage in any business activities with the Mohameds. Despite the warnings, Exxon awarded them the contract in April 2022. That initial report also clearly indicated that the US was considering sanctioning them. Reuters indicated too that the Mohameds are under active investigation by the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI) and the Department of Homeland Security, as well as other agencies for the alleged smuggling of Colombian cocaine and illegally mined Venezuelan gold into the US. Additionally, the father and son are also suspected of money laundering for drug traffickers and criminals, including sanctioned Russians operating in the region.
Following the announcement of the sanctions, the US Ambassador to Guyana, Nicole Theriot stated that investigations took place over the course of two and a half years.
These claims have been vehemently denied by the businessmen. However, after the Reuters report, in October 2023, it was announced that Nazar Mohamed had withdrawn from the NRG consortium contracted to build the logistics
shore base. The other partners of NRG are Andron Alphonso and Nicholas Deygoo-Boyer. Subsequent to his withdrawal, Nazar Mohamed was reported by the media to have said that his
withdrawal was based on “religious beliefs.”
It would be interesting to know the total number of projects the PPP Government has awarded the Mohameds along with their states of completion. Since the Mohamed companies
would no longer be able to fulfill its contractual obligations, this speaks to the dangers of engaging in a form of nepotism in the tender process. Now, not only money, but time will be
lost and of course the Guyanese tax payers will be the ones bearing the brunt of the fallout.
Last by but by no means least is what I will term the Escobar phenomenon that appears to presently exist in Guyana. Approximately three years ago, the inundation of social media and to a lesser extent the main stream media began with reports on the sustained works of charity began. As the frequency of the donations grew, Azruddin Mohamed began to take on the appearance of a man of the people and for the poor of Guyana. Basic houses were built, donations were made to start up businesses, equipment was donated to the Visit Guyana host, sports teams were sponsored, and even motor vehicles and outboard engines were donated to a few people. In 2015, a donation of G$1M was made to City Hall to assist with improving the cleanliness of Georgetown. Donations were frequently made to schools mostly in outlying areas. Students were even taken on ‘field trips’ to Azruddin Mohamed's house to see his sports cars. The so-called school field trips did not last very long as the ensuing public outcry led to the Education Ministry requesting that all student field trips have to receive prior approval.
Suffice it to say, the benevolence has created a type of folk hero worship eerily akin to that which Escobar enjoyed in Colombia. Scores of ordinary Guyanese view the younger Mohamed as some kind of savior. Following this, his hubris became more apparent when, he went so far as to issue fan cards. Generally, fan cards are used by celebrities and sports personalities in North America to give holders access to performances, merchandise and the like. Unhesitatingly, they express their support for him despite the accusations leveled against him. Many have openly stated that it is a conspiracy involving the PPP government because he is showing them up by doing more for the poor of the country that it has done. Some have even gone so far as to say they want him to run for president. Therein lies the problem though. When Escobar began to make himself more visible and began to make good on his political aspirations by using corrupt means to buy his way into the Colombian Congress, he began to attract the kind of attention that ultimately led to his downfall. I dare say that the next few months in Guyana will be quite interesting.
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