Opposition urges Govt. to take US sanctions seriously; protect country’s financial system - Kaieteur News (2024)

Jun 15, 2024 News

Kaieteur News – The Opposition has called on the Government of Guyana (GoG) to take the recent sanctions by the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) seriously and conduct a thorough risk assessment to protect the country’s financial system.

Opposition Economic Advisor Elson Low highlighted the gravity of the sanctions during the party’s press conference on Friday, underscoring the potential implications for Guyana’s financial stability.

On Tuesday, OFAC sanctioned one of Guyana’s wealthiest families, the Mohameds, and Mae Thomas, the Permanent Secretary (PS) of the Ministry of Labour. The department alleges that Nazar Mohamed and his son Azruddin Mohamed have been involved in various corrupt activities, including gold smuggling. Thomas is accused of accepting bribes in exchange for granting the Mohameds favorable treatment and government contracts.

Thomas, who was a member of the People’s Progressive Party (PPP) Central Executive Committee, has since resigned amid the allegations. Notably, Nazar Mohamed is a PPP local government representative. While Thomas has been named for her involvement, OFAC suggests that other government officials are also implicated. It is alleged that customs officers accepted bribes to manipulate gold import and export documents on behalf of the Mohameds.

The Opposition claims that the scandal involves high-ranking government officials and has called on President Irfaan Ali to address the issue. Low stated, “His silence is deafening…President Ali has to man up and let us hear from him.”

The Opposition has urged the government to take the sanctions seriously and act within the bounds of the law to root out corruption involving other members of the party or government.

“We also urge the government to carry out a risk assessment, so that it can advise Guyana’s financial institutions on an orderly way to approach these sanctions. The PPP, through negligence and further corruption, must not turn its face from a threat to the entire local financial system. We need to carefully navigate this crisis without provoking further sanctions on any other financial institution,” Low said.

On April 8, 2023, Thomas was detained by US Immigration officials at the Miami International Airport, and her US visa was subsequently revoked. Following the incident, she was transferred from her position as PS at the Ministry of Home Affairs to the Ministry of Labour.

The OFAC alleged that, in exchange for cash payments and high-value gifts, Thomas misused her position at the Ministry of Home Affairs to influence the awarding of official contracts and the approval processes for weapon permits and passports on behalf of Mohamed’s Enterprise.

Commenting on the situation, Low said, “This has been long in the making, with Thomas being detained by US law enforcement personnel last year was the most recent warning that the PPP was aware, complicit with and protected her, a clear indication that the PPP is unwilling to and cannot afford to fight corruption in Guyana.”

He underscored that since the incident at the Miami Airport; Thomas should have been placed on leave and subjected to an investigation.

“But the PPP encourages corruption, so these serious indications of potential wrongdoing are always swept under the carpet. We are aware that she is but the first of a long list of senior PPP officials who are likely to face sanctions as the US policy of investigating corruption in Guyana continues,” Low added.

Moreover, in a move to safeguard the country’s financial system, Vice President (VP) Bharrat Jagdeo on Thursday disclosed that the Bank of Guyana (BoG) will be revoking the licence of Confidential Cambio, which is owned by the Mohameds.

Shortly after the Vice President made the announcement, the Central Bank published a notice informing the public of the revocation of the licence of Confidential Cambio located at Lot 29 Lombard Street Werk-en-Rust, Georgetown.

Jagdeo also disclosed that the Government of Guyana (GoG) made contact with the Central Bank and the Financial Intelligence Unit (FIU) and requested a report on the implications of the sanctions on the country’s financial system.

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• financial system, govt, Mae Thomas, opposition, US sanctions