Tuesday’s thunderclap from Washington sanctioning Nazar Mohamed, Azruddin Mohamed and Permanent Secretary Mae Toussaint Jr Thomas must have sent shockwaves through all parts of the establishment here. It should be of particular concern to the government and President Ali. PPP/C governments have had a long history of turning a blind eye to credible reports of corruption. This has fostered a climate of cronyism and graft in all sectors of society where the government does business, particularly in state procurement where there is now a veritable bonanza available.
The claims by the US Department of the Treasury are extremely serious and could damage the country’s standing as it relates to anti-corruption and anti-money laundering. It also taints the investment climate.
According to the US, Azruddin Mohamed and Mohamed’s Enterprise allegedly evaded tax on gold exports and defrauded the Guyanese government of tax revenues by under declaring their gold exports to Guyanese authorities.
“Between 2019 and 2023, Mohamed’s Enterprise omitted more than 10 thousand kilograms of gold from import and export declarations and avoided paying more than (US)$50 million in duty taxes to the Government of Guyana”, the US alleged.
“Mohamed’s Enterprise has bribed customs officials to falsify import and export documents, as well as to facilitate illicit gold shipments. Mohamed’s Enterprise had paid bribes to Guyanese government officials to ensure the undisrupted flow of inbound and outbound personnel that move currency and other items on behalf of Azruddin and Mohamed’s Enterprise”, the US further alleged.
To conceal their illegal activity and operate with impunity, the US alleges that Azruddin Mohamed and Mohamed’s Enterprise engaged in extensive bribery schemes involving government officials in Guyana.
“This includes providing direct and recurring bribery payments to Guyanese government officials to ensure favorable treatment in criminal or civil matters that would otherwise suggest their involvement in illegal criminal activity. In return, corrupt officials receive cash and gifts for incidents that are overlooked. Additionally, Mohamed’s Enterprise has paid bribes to corrupt Guyanese government officials to facilitate the award of government contracts”, the US further claimed.
One such official, it said was Ms Toussaint Jr Thomas, the Permanent Secretary to the Ministry of Home Affairs from October 2020 through August 2023, and who is the current Permanent Secretary of the Ministry of Labour.
“A corrupt Permanent Secretary could manipulate procurement processes to suit their preferred bidder by providing inside information at the early stages of evaluation. Access to a Permanent Secretary of any Ministry could afford contractors insight into upcoming projects and bid values. Permanent Secretaries can act as the legal authority to sign contracts on behalf of their ministry.
“While Permanent Secretary to Guyana’s Minister of Home Affairs, (Toussaint Jr Thomas) used her position to offer benefits to Mohamed’s Enterprise and Azruddin, among others, in exchange for cash payments and high-value gifts. (Toussaint Jr Thomas) misused her position to influence the award of official contract bids and the approval processes for weapons permits and passports on behalf of Mohamed’s Enterprise”, the US contended.
The Mohameds and Ms Toussaint Jr Thomas have thus far maintained a stony silence but they will surely have to answer questions as part of a broad investigation.
These claims by the US would suggest endemic corruption across the government and key agencies such as the Guyana Revenue Authority (GRA). They warrant immediate, high-level investigation and not by the customary smoke and mirrors inquiries that the PPP/C is well-known for. This investigation should emerge from a bipartisan approach and should not be in the sole purview of the government as the government itself has possibly been compromised here. The investigation and its scope should have full parliamentary approval.
This is a matter of grave public interest and will test whether the government is serious about fighting corruption. The track record of PPP/C governments is to declare incorruptibility and zero tolerance for graft while at the same time commandeering watchdog institutions and hobbling them from investigating blatant corruption by installing party/government supporters. The corruption which has been ignored or papered over by PPP/C governments stretches all the way back to the powder milk scam in the 1990s, through to the export of dolphins from within the Office of the President, the creation of the Pradoville 2 housing scheme to the recent award of a pump station contract to Tepui Inc.
A specific allegation has been made about shipments of gold by the Mohameds between 2019 and 2023. The relevant documents for that period should be with the GRA, the port(s) of exit, the Guyana Geology and Mines Commission and related bodies. These documents should be retrieved and secured for investigative purposes pending the supply of corresponding documents as requested from the US.
The other major area of concern is the alleged corrupt steering of contracts to unqualified persons. This is one of the allegations against the Permanent Secretary. The Mohameds were not known to be engaged in major construction so the significant projects they were assigned could raise red flags. Other bidders for these contracts would hardly protest as they fear reprisals or are aware that their turn for a contract would come at some point. The Guyana public did not have to wait for the US Treasury to suggest that this was a problem here. In the last two years, it has been clear that contracts have been corruptly steered to unqualified persons to build pump stations. In this respect the steering has been done by the Evaluation Committees under the National Procurement and Tender Administration Board. The government has been fully aware that this practice has been occurring but Cabinet has signed off on it. The contract to Tepui Inc is the most telling example of an award to an unqualified bidder and so it would be no surprise that steering of contracts can also occur at the level of the Permanent Secretary.
Aside from the alleged under-declaring of gold shipments, there has also been strong evidence of the outright smuggling of gold out of the country. The 2012 theft of 476 pounds of gold from a boat in Curaçao was the starkest example. Yet, the then government made no effort at all to get the bottom of it and crack down on the smuggling which had at one stage been stated at the staggering figure of 15,000 ounces weekly.
President Ali is now approaching four years in office. Whether he should be re-elected next year will hinge on many things such as the fate of the gas to power project and the fair apportioning of oil revenues to all constituencies. It will now also be influenced by how his administration treats with these stunning claims of corruption that have now enmeshed the then most senior civil servant in the Ministry of Home Affairs, called into question the rectitude of the procurement system and the management of gold exports. The public awaits decisive action from him.
