U.S. authorities accuse Guyanese government official of corruption.

Guyanese business man, Nazar Mohammed who it is alleged engaged
in corrupt activities including evading taxes.

 GEORGETOWN, Guyana

The United States government through the actions taken by the Department of Treasury, has imposed sanctions on a high ranking member of the Guyanese government who is being accused of corruption.

According to a statement on the U.S. State Department's website, the "United States is imposing sanctions today on...Mae Thomas, the former Permanent Secretary to Guyana’s Minister of Home Affairs and current Permanent Secretary to the Ministry of Labour" who is being accused of corrupt practices.

In response to this notice the Guyanese government on Tuesday (June 11) said it had sent the Permanent Secretary "on leave with immediate effect".

The Department of the Treasury's Office of Foreign Assets Control (OFAC) will in addition to imposing the sanctions on Ms Thomas, has sanctioned business man Nazar Mohamed, his son, Azruddin Mohamed, and their company Mohammed's Enterprise. The US government also noted two other companies -- Hadi's World and Team Mohamed's Racing Team which are also owned or controlled by Mohamed's Enterprise and Azruddin, respectively.

OFAC will sanction these individuals and entities under Executive Order 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 US law enforcement, will continue to take action to safeguard the US financial system from abuse by corrupt actors," Nelson added.

In a statement, the Guyanese government said it has taken "careful note" of the United States Department of the Treasury informing of the matter involving the three Guyanese nationals.

In a statement it said:
"Based on the information referenced in the press release, the 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 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, the Permanent Secretary of the Ministry of Labour, Ms Mae Thomas has been sent on leave with immediate effect."

The Irfaan Ali government said that it 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 US authorities say 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.

They said these small, family-owned businesses have informal relationships with larger purchasers and traders like Mohamed's Enterprise and that "once mined, Guyanese gold is sold and traded throughout international markets, including the United States, Canada, the United Arab Emirates, and the European Union".

They also said that Nazar 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."

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.

It is also alleged that 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 US$50 million in duty taxes to the government of Guyana.

As for Permanent Secretary Mae Thomas, U.S. authorities allege that she misused her position as Permanent Secretary to the Guyana Minister of Home Affairs from October 2020-August 2023 by offering benefits to Mohamed’s Enterprise and Azruddin in exchange for cash payments and high-value gifts.