Vice President Bharrat Jagdeo announced that the Financial Intelligence Unit (FIU) and the Bank of Guyana were asked to prepare and submit a comprehensive report on what implications the sanctions by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) could have on Guyana’s financial system.
On Tuesday, the U.S. Department of Treasury announced that it sanctioned Nazar and Azruddin Mohamed, their companies and the Permanent Secretary of the Ministry of Labour, Mae Thomas “for their roles in public corruption in Guyana.”
Addressing the issue of the sanctions at his Thursday, June 13 press conference, the Vice posited that submission of a comprehensive report by the two entities stated above, was requested to safeguard the country’s financial systems from any blowback from the sanctions
“We want to safeguard our financial systems. That would mean exposures to the Mohameds and any other matter that may have a direct bearing of a financial nature on our system because we are obligated to do so under the sanctions to safeguard the financial sector of Guyana.”
Meanwhile, the Bank of Guyana, in a public notice announced that it revoked the licence of Confidential Cambio which is owned by the Mohameds, and that the entity is no longer authorized to conduct the business of buying and selling foreign currency.
Additionally, all government agencies have also been tasked with the submission of a report on their engagement and transactions with the Mohameds.
“We have also asked all of the other agencies that have some form of engagement with the Mohameds to review their transactions and present a report to the government to ensure that we are in full compliance with the sanctions regime.”
The issue of contracts given to the Mohameds over the last four years was also addressed, with VP Jagdeo stating that the Mohameds were only awarded two contracts during the aforementioned period and that both contracts were won through public tender. He stated that in both contract awards, the Mohameds were the lowest responsive bidder.
In June of 2021, Mohamed’s Enterprise was awarded a contract for the reconstruction of Lot 1 of the Lusignan prison for $370 million. In November 2021, the company was also awarded a $614 million contract for the construction of the Guyana Fire Service Headquarters.
The U.S. Department of Treasury has accused the Mohameds of engaging in an extensive bribery scheme involving government officials. Former permanent secretary of the Ministry of Home Affairs and current permanent secretary of the Ministry of Labour Mae Thomas was cited as one such corrupt government official.
The statement by the Department of Treasury on the issue of the sanctions indicated that “while Permanent Secretary of Guyana Minister of Home Affairs, Thomas used her position to offer benefits to Mohamed’s Enterprise and Azruddin, among others, in exchange for cash payment and high-value gifts. “
Thomas was also accused of using her position as permanent secretary of the Ministry of Home Affairs at the time, to manipulate the procurement process and influence the award of contracts in favour of the Mohameds and the approval process for the issuance of weapons permits and passports on behalf of Mohamed’s Enterprise.