Dear Editor,
ExxonMobil has acted recklessly by ignoring repeated U.S. government warnings about doing business with individuals who are under imminent threat of U.S. sanctions; Nazar and Azruddin Mohamed of Hadi’s World and Mohamed’s Enterprise. The Vreed-en-Hoop Shore Base (VEHSI) project is funded by a 300M USD upfront rent payment by Exxon that is fully cost-recoverable, in other words, it is Guyana who pays the bill ultimately. Would Exxon have been so deaf to U.S. government advice if they were the ones paying this bill? And should Guyana pay if the port now fails because of sanctions to a shareholder? Especially one that Exxon was repeatedly warned about? The entire development needs examination for a full understanding of the risks now at play.
Nazar Mohamed and Son own approximately 28% of the Port. They were the original 100% holders of the rights to reclaim and develop the area in the river, VEHSI is a joint venture between NRG Holdings Inc., a Guyanese consortium of majority locally-owned businesses — Hadi’s World Incorporated, National Hardware Guyana Limited, ZRN Investments Incorporated, and Jan De Nul Group. The port is expected to expand to 800 acres (presently 10) and the ability to eliminate reliance on foreign bases for Guyana operation; these foreign bases cost Guyana over 1M USD per day currently. Since sanctions on a shareholder would make it impossible for Exxon (or any international company) to do business with VEHSI, decisions have to be made to protect Guyana’s investment and interests in the venture.
Exxon decided to continue to do business with Nazar and Azruddin Mohamed despite numerous warnings from U.S. officials and it would be unfair, unethical, and possibly illegal for them to walk away from the project at this stage and declare a loss leaving Guyana with the bill. It would be unwise for Guyana to continue to approve funding for a project that could stall or die because of shareholder sanction; there is only one solution for the benefit of the shareholders and the country. The Mohameds must divest their shares as a matter of urgency, vitally this must be done before any sanctions hit, which would make it impossible for anyone to purchase those shares (or anything else) and would leave the Government of Guyana seizure as the only option to keep the project alive.
Editor, while it may seem that I write unfairly from a position of ‘presumptive guilt’, it is the only perspective allowed when considering the amount of money at stake, 300M USD buys a lot of good things if the Port is built, conversely, it leaves a hole and an eyesore should it fail. “Trust in God but tie your camel tight” are words of a man far wiser than all, and it is advice that must be followed for the protection of Guyana, its future port, and prosperity.
Sincerely,
Robin Singh
