US sanctions the Mohameds, their companies and Permanent Secretary Mae Thomas in corruption crackdown

The US Treasury Department’s Office of Foreign Assets Control (OFAC) today announced the sanctioning of billionaire Guyanese businessman Nazar Mohamed, his son, Azruddin Mohamed (Azruddin), their company, Mohamed’s Enterprise, and Labour Ministry Permanent Secretary and PPP Central Committee member, Mae Thomas.

In a statement, the US Treasury Department said the Mohameds and Thomas have been sanctioned for their roles in public corruption in Guyana.

Two other entities owned by the Mohameds, Hadi’s World and Team Mohamed’s Racing Team, have also been sanctioned for being owned or controlled by Mohamed’s Enterprise and Azruddin Mohamed.

As a result of the move by the US Treasury Department, all property and interests in property belonging to the Mohameds and Thomas that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to the Treasury Department.

Additionally, entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more of the sanctioned persons are also blocked.

US persons and companies are also prohibited from doing any transactions with the Mohameds or their companies and Mae Thomas.

In addition, 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 Treasury Department stated.

It was explained that 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

“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.

He said the “Treasury, in close coordination with our partners in U.S. law enforcement, will continue to take action to safeguard the U.S. financial system from abuse by corrupt actors.”

The actions by the US Government through its Treasury Department could force the Guyana Government to revoke the gold mining and trading license for the Mohamed’s company. Local commercial banks could also be forced to reassess their situation with the family and their companies.

The US Treasury Department stated that the actions were conducted in coordination with Homeland Security Investigations New York Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force, Diplomatic Security Service, Customs and Border Protection (CBP) Office of Intelligence – New York Operations, and the Federal Bureau of Investigation’s Miami Field Office, with assistance from HSI Miami, CBP Miami and New York Field Offices, New York City Police Department Intelligence Bureau, and the Drug Enforcement Administration.

In July last year, the Reuters news agency first reported that The Mohameds were under investigation by the US Department of Treasury.

The family immediately denied accusations of gold smuggling and drug trafficking, and stated that there was a smear campaign being waged against the father and son.

In the Reuters report, it was stated that US Officials had warned oil giant, Exxon Mobil, about doing business with the Mohameds.

The report by Reuters forced the family to relinquish its ties and investment in the massive Vreed-en-hoop Shore Base project, which is being developed to serve Guyana’s growing oil and gas sector. The Mohameds were among the first set of investors in that project that is closely linked to the ExxonMobil company.

Three months before the reports of the Treasury Department probe surfaced, the Mohameds hired a former Acting Assistant Director of the US Federal Bureau of Investigations to get to the bottom of the US government’s refusal to grant visas to members of the family. The family still remained blocked from being granted US visas.

Permanent Secretary in the Ministry of Labour, Mae Thomas, was the Permanent Secretary in the Ministry of Home Affairs in April 2023, when she was stopped and grilled by US authorities after arriving on a flight in the US while on her way to China.

She was handcuffed and her mobile phone was seized by the US authorities. Her US visa was also revoked, and it was reported that she was questioned about her ties to the Mohamed family and a number of corruption allegations was leveled against her during the hours of questioning by US authorities.

Thomas returned to Guyana and continued in her position at the Home Affairs Ministry, which overlooks national security/. However she was eventually moved to the Ministry of Labour and continues to work at that Ministry in the Permanent Secretary position. Thomas was recently elected to the Central Committee of the governing People’s Progressive Party. One of the other sanctioned persons, Nazar Mohamed is an Neighbourhood Democratic Councilor for the PPP.

The Mohameds shared close ties with a number of high ranking officials in the Government for a number of years. Just after he was elected and sworn in as President, armoured vehicles belonging to the Mohameds, provided security support for President Irfaan Ali.

The Mohameds company had also won a multi million dollar bid to construct the new headquarters of the Guyana Fire Service. Although construction was completed on time and the Fire Service has since taken over the facility as its new headquarters, the Government never hosted an official commissioning ceremony for the big investment.