Investigation
‘Shell’ Mohamed, son deny smuggling claims: Gold trader, Nazar ‘Shell’ Mohamed and his son, Azruddin Mohamed last Friday denied the explosive claim in a Reuters special report that they were engaged in gold and drug smuggling. The elder Mohamed told Stabroek News that the report was false and just a “regurgitating of another article that had been written that had no merit.” He later issued a statement further explaining his position while stating that they maintain their “challenge to Reuters to produce any information to support that these allegations are of any substance.” Reuters also disclosed that US government officials repeatedly warned ExxonMobil to avoid doing business with two mining magnates in Guyana, both of whom it said are currently the subject of a US investigation on suspicions of money laundering, drug trafficking, and gold smuggling, according to five people with knowledge of the matter and two intelligence reports seen by the news agency. “The Texas-based oil giant ignored the advice, which was delivered during meetings in late 2021 and early 2022, and cut a deal to build a US$300 million onshore logistics base with a consortium that included the two Guyanese businessmen, Nazar Mohamed and his son, Azruddin. Exxon announced the contract award in April 2022,” the report stated. “The Mohameds have close ties with Guyana’s president and some cabinet members, according to one of the U.S. intelligence reports and three sources with knowledge of their relationships. The government controls access to vast and newly discovered oil reserves off the South American nation’s coast. The Mohameds, owners of Mohamed’s Enterprise, had mostly focused on gold mining and foreign currency exchange before expanding into the oil business in recent years and securing the lucrative deal with Exxon,” it added. According to the report, “U.S. officials are considering imposing sanctions on the Mohameds, according to four of the sources and two additional people familiar with the matter. That could require Exxon to sever its business relationship with any sanctioned individuals or companies.”
Development
World Bank reclassifies Guyana as ‘high income’ country: Guyana has moved up in the World Bank country classification index according to gross national income (GNI) and is now regarded as a high-income country, a change from being middle income and one that would see scaled down access to concessional loans and higher interest rates for borrowing from international development organisations. And while the minimum wage for the private sector is $60,147 or US$300 per month, the fact that this country is an oil producing nation and large proceeds from that sector go to the state has influenced the indicator and subsequent changes although the World Bank’s classification of a high-income country is one where the gross national income (GNI) is US $13,846 or more. “We have graduated and are now on the same level as Barbados and The Bahamas in the region… this is mainly because of oil [production],” Bank of Guyana Governor Gobind Ganga told Stabroek News last week. He pointed out that with the upgrade will come changes when grants are lessened and borrowing terms are higher or payment periods shorter, among “a number of changes and factors”, according to the margins set out by the World Bank for its lending groups. With its middle income ranking, Guyana had already been complaining about loss of access to concessional financing and other repercussions. The World Bank explained that its World Development Indicators database (and most other time series datasets),of all 189 World Bank member countries, plus 28 other economies with populations of more than 30,000 “are classified so that data users can aggregate, group, and compare statistical data of interest, and for the presentation of key statistics.” It said that the main classifications provided are by geographic region, by income group, and by the operational lending categories of the World Bank Group.
CDB greenlights US$76.2m loan for water supply here: The Caribbean Development Bank (CDB) has approved a US$76.2m loan to the Government of Guyana for the Guyana Water Supply Improvement Project under which systems serving five coastal communities will see major upgrades. A release last week from the CDB said that the infrastructure development initiative involves the construction of five water treatment plants, with storage tanks, and the installation of transmission mains and water meters to vastly improve the quality and reliability of the water supply to Bush Lot, Tain to No. 50 Village, Berbice; Walton Hall to Charity, Wakenaam and Leguan in Essequibo. Nearly 15,000 households in these communities will benefit from the interventions, the release said. CDB’s Vice President, Operations, Isaac Solomon said, “Improving access to safe, reliable, and sustainable water and sanitation is an area of high priority identified for support from the CDB to propel holistic development which will enhance quality of life, improve health and safety and ensure greater well-being among citizens across the Region.” He added, “The Guyana Water Supply Improvement Project is also in alignment with Guyana’s development priorities which include stimulating future growth through clean energy and sustainable activities, and several Sustainable Development Goals including those relating to improving access to clean water and sanitation, and the promotion of healthy communities and good health and wellbeing.” The release said that the five communities are currently supplied by wells that have no water treatment facilities. The water supply is also currently subject to disruption due to pump failures, line breakages, and flooding of water supply infrastructure. The initiative is one of the first to be carried out under CDB’s Guyana Country Engagement Strategy (2023-2025). The Project will support the government’s efforts to increase the percentage of persons having access to treated water to 90% by 2025. At present, although 96% of the population has access to potable water only 53% of the supply meets the aesthetic standard of the World Health Organisation due to the high iron content, the release noted. CDB’s Environmental and Social Impact Assessment indicated that an increase in the availability and accessibility of improved water will address several of the challenges that residential and commercial water users in the communities currently face such as the need to purchase drinking water, and the extended time necessary to clean domestic items or hardware affected by the use of the untreated water.
Investigation
Brazil probe fingers local businessman in gold smuggling, money laundering: Brazil is conducting an investigation involving a Guyanese businessman, who is said to be part of a smuggling ring where some R$80 million (US$16.4 million) of illegally mined gold was laundered through shell companies in the food and medical supply industries. Several days ago, the Ministry of Justice and Public Security of Brazil reported through its Federal Police that an investigation dubbed “Operation Vanglória” had been launched that would get to the origin and sale of illegal gold. Since the investigation was launched, three search and seizure warrants have been issued by the 4th Federal Criminal Court of the Federal Court in Roraima. Meanwhile, there is information linking a Guyanese businessman, who works in the mining industry here, to suspicious activities in Brazil. The investigation so far indi-cates that the suspect owns a company that is registered to sell foodstuff. Additionally, it is known the Guyanese businessman would also make use of a Brazilian partner who is also being investigated, to move money through other shell companies. One of them, which on paper trades in hospital supplies but has no activity at the registered address, has so far moved more than R$60 million. As such, “Operation Vanglória” also seeks to clarify whether the amounts moved originate only from the smuggling of gold from Guyana or whether the businessman was illegally exploiting mines in Indigenous areas in the state of Roraima. When Stabroek News contacted the Special Organized Crime Unit (SOCU) in Guyana, the unit through its head, Senior Superintendent Fazil Karimbaksh, said that they were unaware of this matter. Stabroek News also reached out to the Ministry of Home Affairs, Ministry of Natural Resources, and the Ministry of Foreign Affairs and thus far no official response has been given.
Accountability
Procurement body invites complaints on award of gov’t contracts: Amid criticisms of it, the Public Procurement Commission (PPC) is inviting persons aggrieved over the award of any government contract to lodge a formal complaint so as to trigger an administrative review. “Dissatisfied with the rejection of your bid? Lodge a complaint for an administrative review,” a notice in the state-owned Sunday Chronicle said. The PPC pointed out that this country’s procurement laws provide for a review by it, should the complainant make their dissatisfaction known though a formal process within a specified period. “The Procurement Act, Cap73:05 provides that a bidder whose tender or proposal has been rejected may submit a written protest to the procuring entity,” the PPC explained, “The protest must be submitted within five business days following the publication of the contract award decision. If the protest is not reviewed or the bidder is dissatisfied with the review, the bidder may submit a request for a review within three working days to the Public Procurement Commission. Decisions on the review are final and binding on the procuring entity,” the Commission also noted. Meanwhile, in a separate notice in the Sunday Chronicle on the issue of Debarment of Suppliers or Contractors, the PPC said that it is mandated by law, Cap 73:05 of the Procurement Act to adjudicate proceedings to debar.“A procuring entity or any other person may submit a proposal in writing to the Public Procurement Commission for the debarment of a supplier or contractor. A debarment period may be for a minimum of one (1) year but no more than 10 years,” the PPC stated. On debarment, it pointed out that “a procuring entity shall not solicit or accept bids, proposals or quotations from a debarred supplier or contractor, nor consider bonds, proposals or quotations submitted by a debarred supplier or contractor prior to the debarment. A debarred contractor or supplier may apply to the PPC for a reduction in the duration of the debarment period or its termination. “ Facing criticisms that it was not discharging its functions, the PPC had on April 24 of this year said that several complaints before it were “under active consideration”. The statement had come on the heels of a blistering from the Alliance For Change (AFC) that the procurement body was not doing its work. AFC Parliamentarian David Patterson had blasted the PPC for spending taxpayers’ money but not executing its constitutionally enshrined functions and addressing complaints. He also expressed bewilderment that the PPC was seeking legal advice on its functioning despite the fact that a previous commission operated under the current provisions.
Oil & Gas
Petroleum Commission would have obviated mirror complaints on minister’s powers – Goolsarran: Had both government and the current opposition acted on the Petroleum Commission Bill when it was sent to a Select Committee in 2018, controversy regarding the sweeping powers of the minister could have been resolved, as a commission responsible for those decisions would have been in place, former Auditor General Anand Goolsarran has said. He believes that mirroring complaints on the issue of power by the minister would not have continued as it does for the recently proposed Petroleum Activities Bill. “Our main concern so far about the Bill is the over-concentration of powers in the hands of the minister of Natural Resources. This is notwithstanding that the minister may delegate any of the powers in the administration, supervision and inspection of petroleum operations to a department, agency or government body under its administrative authority. The word “may’’ would suggest that it is not mandatory for the minister to do so. He/she can decide not to delegate any of his/her responsibilities, or if the minister does decide to do so, he/she can be selective in his/her approach,” Goolsarran wrote in his weekly Accountability Watch column, in the Stabroek News. Further, he reasoned, “It will be recalled that in 2017 the Petroleum Commission Bill was presented in the National Assembly, providing for the establishment of a commission to oversee and manage the oil and gas industry to ensure, among others, compliance with the policies, laws and agreements relating to petroleum operations, including compliance with health, safety and environmental standards as well as local content and participation requirements. The Bill was referred to a Special Select Committee for detailed scrutiny. However, to date, the commission is yet to be established. Had this been done, the responsibilities of the minister would have been considerably reduced, thereby freeing him/her up to focus on policy matters.” The Petroleum Commission Bill was first presented to the National Assembly in May 2017 and returned for its second reading and debate one month later. It was sent to a Special Select Committee and since then there had been no word on it. The People’s Progressive Party/Civic, then in opposition, had stoutly criticised it, questioning the powers granted to the minister of Natural Resources. President Irfaan Ali had also been most vocal in his criticism of the Bill as an opposition MP. Objections were raised by the PPP/C, about the lack of independence of the commission, general governance, and its ability to operate in a non-discriminatory and apolitical manner.
Judiciary
Burch-Smith agrees justice system on `verge of collapse’: Attorney-at-Law Ronald Burch-Smith, says that Senior Counsel Ralph Ramkarran’s description of the justice system “being on the verge of collapse” is no exaggeration; and credits the deficiencies to the absence of the Judicial Service Commission (JSC) which should have been reconstituted some six years ago. In an invited comment, Burch-Smith, who is also President of the Guyana Bar Association, but clarified that he was sharing his personal views on the issues, told the Sunday Stabroek that there is no legal impediment to appointing the JSC. In fact, he was quite frank in his view that it was all politics and gamesmanship at play, which he described as oppressive—stymieing the reconvening of this commission—which is integral to the efficient functioning of the judiciary. “The issue is one of political convenience and gamesmanship. It has long been dangerous and now threatens the foundations of the administration of justice. It is oppressive to the judges and litigants,” the Bar Association president said. In his column in the last Sunday Stabroek, Ramkarran said that the criminal justice system and the appeal system are in a state of collapse. He did not assign blame for this but it was clear that he was referring to the PPP/C government’s failure to reconvene the JSC to enable the appointment of more judges. Adverting to a seminar on June 24th where Caribbean Court of Justice (CCJ) Judge Jacob Wit made a presentation on `Rethinking Criminal Justice,’ Ramkarran delivered a scathing assessment of the present system here. “It was a timely and important (seminar) because our criminal justice system, like our appeal system, is in a state of collapse. This is no exaggeration because these systems do not deliver justice to the Guyanese citizen in a reasonable time, as provided for in the Constitution. Accused persons are tried years after they are committed to trial. Those on remand have to spend their time in prison. Civil appeals now take about six years to be heard. I hasten to add that this state of affairs is not the fault of judges. They work diligently and under great pressure,” the Senior Counsel said.
He added: “the state of our judicial system was not created by a natural disaster. It is man-made and there is no hint that any man-made solution will ever be entertained. Up to recently the High Court had twelve appointed judges although the full complement is twenty.
Three out of the twelve, twenty-five percent, have recently retired and cannot be replaced because a Judicial Service Commission is not being constituted, although there is no known obstacle to doing so. The Court of Appeal has had only three Judges, out of a complement of five, for over fifteen years. The full complement for the Court of Appeal has been recently increased to nine,” the Senior Counsel said.
Housing
Around 800 choose house lots at Lusignan, Two Friends: Some 800 families were last Monday offered residential house lots in Lusignan and Two Friends, East Coast Demerara through another of the government’s ‘Dream Realized’ allocation exercises. The housing drive was hosted by the Central Housing and Planning Authority (CHPA) at the Arthur Chung Conference, Liliendaal and hundreds lined up early some of them from before dawn. The exercise which is part of an iniative to provide 50,000 house lots to citizens by 2025 was led by the Minister of Housing and Water, Collin Croal, Minister within Ministry, Susan Rodrigues and Chief Executive Officer of the CHPA, Sherwyn Greaves. House lots were provided through a lottery system which was demonstrated by Croal and Greaves. In an interview with Stabroek News, Pradesh Thakram who said he was there since 3 am yesterday expressed great satisfaction with finally being able to own his own land and build his home. “I feel great because I have been renting for 35 years now and now I have my own land. I can’t wait to go on it to stop paying rent”, he stated. A mother of three, who requested to remain anonymous, also shared her joy at finally being able to provide a better life for her children.
In the courts
Andrew Morgan sentenced to four years over cocaine: Fifty-three-year-old Michael Andrew Morgan, of Lot 142 Ixora Avenue, Eccles, East Bank Demerara, appeared at the Diamond Magistrate’s Court last Friday before Magistrate Sunil Scarce where he was jailed for four years for possession of cocaine for the purpose of trafficking. The magistrate also fined him $4.9 million. On July 4th, Morgan was found guilty of possession of a narcotic for the purpose of trafficking to wit approximately 7 lbs. (3.27 kg) of cocaine. Sentencing was deferred to yesterday pending a probation report. Morgan was charged back in June 2022, when CANU officers discovered the cocaine at his residence at Ixora Avenue. In a statement on June 27, 2022, the Customs Anti Narcotic Unit (CANU) reported that its officers acting on intelligence conducted a search operation at Lot 142 Ixora Avenue, Eccles. It was conducted in the presence of Morgan who at the time was the lone occupant. During the search, officers discovered 3.27 kilogrammes of suspected cocaine, 27- 9mm rounds, one .32 Taurus pistol, along with one magazine, and 25 matching .32 rounds. Morgan was arrested and taken to CANU headquarters along with the firearm, ammunition, and suspected narcotics.
Man who raped girl, 15, gets life imprisonment without chance of parole: Wesley Bazil called ‘Tappy,’ who was convicted last month for raping a 15-year-old girl who had gone to his shop to make a purchase, has been handed a life sentence without the possibility of parole. The sentence was imposed by High Court Judge, Navindra Singh, who told Bazil that he was a ‘calculating recidivist predator,’ whose actions warranted the life sentence, with no chance of release. The court had heard that it was not the first time that Bazil had been before a court of law for offences of sexual nature; as he had also been convicted of a similar offence in the United States of America. After serving jail time, he was deported back to Guyana in 2017. Prosecutor Tiffini Lyken in calling for what she said must be a robust approach to sentencing, noted the growing prevalence of sexual offences which continues to plague Guyana. Against this background and specifically underscoring Bazil’s previous conviction, Lyken said that what is clear is that after his return to Guyana, the convict, continued in his errant ways. On that point she said that he continued to be a danger to society.
CJ rules that attorney’s right to liberty was breached by SOCU: Chief Justice (ag) Roxane George has found that attorney Tamieka Clarke’s fundamental right to personal liberty was breached by the Special Organised Crime Unit (SOCU) when she was briefly arrested on October 28 last year while advising her client. She cited Article 139 of the Constitution which deals with the protection of the right to personal liberty. A deliberation on the quantum of damages against the police unit has been adjourned for further submissions on 19th September 2023. The attorney general was named as the respondent in the proceedings. Justice George also ruled that the detention and seizure of Clarke’s cellular phone by officers of SOCU without her permission and without lawful excuse was wrong. Based on the orders prayed for by Clarke, the CJ held that an attorney at law admitted to practice in Guyana is entitled to advise a client to remain silent when questioned by any lawful enforcement agency. The judge further ruled that an attorney at law admitted to practice at the Bar in Guyana is entitled to consult with his/her client in private without the contents of the consultation being recoded in any way including by means of audio visual recording by any law enforcement agency in the Guyana or elsewhere. As a practising attorney at law admitted to practice in Guyana, the CJ said that Clarke is entitled to advise any person who has sought her counsel to exercise the right to remain silent when questioned by a member of any law enforcement agency in Guyana.
