Nine months after being sanctioned by the US Government along with his son and their businesses, Guyanese business magnate Nazar Mohamed broke his silence this evening on the impact of those sanctions and the Guyana Government’s reaction.

“To say that it hasn’t affected us in an understatement. Indeed, it has affected us greatly because our entire business has actually come to a standstill,” Mohamed said in a video release on social media.

The Mohameds along with their businesses were sanctioned by the US Government over claims of under declaration of gold, money laundering, tax evasion and payment of bribes. A permanent secretary in the Government was also sanctioned along with the Mohameds.

For the Mohameds, the sanctions have effectively resulted in the company being forced out of the local oil and gas sector, where it provided several services, as well as the construction industry and the gold trading business.

But today, the Maritime Administration Department announced that it has taken the decision not to renew the cabotage permission previously granted to Hadi’s World, which is owned by the Mohameds.

The cabotage permission allowed foreign-flagged vessels to operate on coastal voyages in Guyana’s waters. The company was granted a license to continue those operations after the US sanctions, but after the issue was recently highlighted and the last license expired in February, MARAD has indicated the license will not be extended.

The senior Mohamed said he cannot be stopped from doing business in Guyana and he intends to have the Court address the issue.

“Now the Constitution protects me as a citizen of Guyana, I can do whatever business I want to do in my country, no one can stop me from doing any business in our country because the sanction does not dictate that I cannot do business in my country,” he said.  

The company’s gold mining operations will also be affected as those licenses are not being renewed by the Government.

Mr. Mohamed said for the past 14 years his family has acquired 80,000 acres of mining lands and has never encountered difficulties renewing their licenses having paid their royalties, until now. 

He said the company’s Quarry and Cambio operations have also been affected he added.

“Our Cambio license have been taken away without any hearing, without any justification,” he said. 

According to the sanctioned businessman, senior functionaries within the Government have been “deliberately misrepresenting” the effects of the sanctions.

Mr. Mohamed said he believes that while he together with his son and companies have been sanctioned by the US, it is “ludicrous” to suggest that non-American companies and organizations doing business with the Mohameds would also be sanctioned. 

“Myself, and my son and our companies cannot do business with American citizens and American companies. We have been in the oil and gas sector very early, and we have lots of clients from various American companies, who had to leave after the sanction respectfully. We were providing great service for them but they had to leave which is understandable. But to say, anyone one who associates themselves with the Mohameds would be sanctioned is ludicrous,” he said. 

In announcing the sanctions in June 2024, the US Treasury department warned that 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 US Treasury Department said.

Mr. Mohamed said he is not aware of anyone being sanctioned as a result of an association with the family or their businesses.

Vice President Bharrat Jagdeo, during one of his recent press conferences said that a number of persons who were associated with the Mohameds have had their US visas revoked, but Mr. Mohamed said that statement is simply untrue. 

Mr. Mohamed, who contested the last Local Government Elections as a Candidate for the governing People’s Progressive Party, declared that all his life he has been associated with the PPP/C, and for that reason he cannot comprehend the hostility of the party and its agents towards him and his family.

He said his family has been facing a growing number of threats as his son continues to visit communities across the country and persons encourage him to run for political office.  Mr. Mohamed said if his son decides to run for public office, that should be his choice.

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