Vice President Bharrat Jagdeo took aim at the Mohamed family today, making it clear that the Government of Guyana will not jeopardize the country’s financial system to appease the Guyanese business magnate Nazar Mohamed and his son, who were sanctioned by the US Government last year.

On Tuesday, owner of Mohameds Enterprises, Nazar Mohamed, said the effects of the US sanctions are being felt across family’s local operations in the oil and gas, gold mining, quarry, maritime and construction industries, in addition to their cambio business.

He said while the family understands that US companies have no choice but to cease operations with the family and their companies, he believes it is a breach of their Constitutional right as citizens of Guyana to be locked out of doing business in their own country over the US sanctions.

The Government has cancelled and refused to renew a number of business licenses for the family.

At a Freedom House press conference today, Mr. Jagdeo fired back at the Mohameds over their claims of being targeted by the Government.

“Now, clearly, Mr. Mohamed believes, falsely so that the PPP out of some perceived loyalty to him, and Azruddin Mohamed would put at risk the future and the interest of all of the people of this country for them because somehow, somewhere in the past he played marble with Cheddi Jagan…We are never going to put the interest of a single individual, particularly if you are accused of doing something so illegal that you bring sanctions of the United States Government down on your own head, we must put the country at risk,” Jagdeo said.

He said the country’s financial system could have been severely affected or even crash if the Mohamed’s cambio license was not suspended after the US slapped them with sanctions. The Vice President said the effects could have been catastrophic.

“We could shut down the entire financial system if the Mohameds had continued owning a Cambio license. The banks all cut ties. Just imagine our banks, if they had continued allowing the Mohameds to have an account or do business with them, they could be subjected to US sanction,” the Vice President said.

He explained further that Guyanese banks could have lost correspondent banking for continuing to do business with the Mohameds.

Mr. Jagdeo said the Government cannot do business with the Mohameds, while explaining further that such a move would expose the country to US sanctions.

The senior Mohamed has said that to his knowledge, no one associated with his son Azruddin Mohamed or the family has been sanctioned or have had their US visas revoked because of their association with the family or their businesses.

But VP Jagdeo maintains that due to their association with Azruddin Mohamed, a number of persons have had their visas revoked. He did not provide any names.

“It is a gross misrepresentation to claim, as he claimed, that it is only American companies that could face sanctions, if they associate with the Mohameds. It not only misrepresents it, but the facts are so evident because there are in the release issued by the United States Government when he was sanctioned. If you look at sanction implications, it speaks about US prohibit all transactions by US persons or within or transiting the United States of America. So, if you are a non-US citizen but you transit the US, you go to the US on vacation, or you transit the US, you are subjected to transactions too,” the Vice President explained.

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.

Jagdeo said instead of addressing of the allegations leveled against them and their companies, Nazar Mohamed has alleged that he knows of a Guyanese businessman, who has been buying gold from Venezuela to sell to the local Gold Board while depositing hundreds of millions into a local bank.

The Vice President said if the Mohameds have that information, they should provide the evidence to the Guyana and US Governments.

“Mr. Mohamed did not say a single word about the sanctions, whether he believes they were justified or not, and the veracity of the claim made by the United States Government. The United States Government said that Mr. Mohamed, and Team Mohamed, and Azruddin Mohamed and their companies smuggled 10,000 kilograms of gold out of Guyana and evaded over US$50M in taxes, and that was just one of the accusations, lets forget all of the other accusations against the Mohameds which resulted in the sanctions. So, Mr. Nazar Mohamed never said a word about that,” the Vice President said.

Mr. Mohamed contested the last Local Government Elections as a Candidate for the governing People’s Progressive Party, and his family has also admitted to providing support to the PPP/C over the years.

Mr. Jagdeo said he has no time to put the country at risk because of historical political allegiance.

Nazar Mohamed and his son Azruddin, and their companies were all sanctioned by the US Government over claims of money laundering, under-declaration of gold, bribery payments and tax dodging.

A Permanent Secretary, whi is a former PPP Executive Member, Mae Thomas, was also sanctioned by the US Government in relation to some of the same claims against the Mohameds. She has been placed on administrative leave by the Government.

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