US Sanctions
Probe of Mohameds, PS had been on for 30 months – US Ambassador: United States Ambassador to Guyana, Nicole Theriot, last Friday said that the investigation leading to the sanctioning of the Mohameds and Permanent Secretary Mae Toussaint Jr. Thomas-Meerabux, was more than two years in the making and that information could not be provided to anyone here lest it be compromised. “These sanctions were two and a half years plus of investigations ongoing in the United States. We reserve these type of sanctions for gross levels of corruption and human rights abuses,” the Ambassador yesterday told reporters at the US Embassy, Georgetown, on the sidelines of a press conference held by United States Under Secretary of State for Arms Control and International Security, Bonnie Jenkins. “In fact, two days ago, we also levied sanctions on a few Russian financiers in the Ukraine crisis. So this is something that we reserve for very serious crimes. And after two and a half years, it was a whole US Government investigation, and it’s a very high bar. We do not do this lightly. This is something that we ensure we have a preponderance of evidence before we are ready to issue sanctions, and we had that in this case against the three individuals who were sanctioned,” she added. And concerning the government’s complaint that it was left in the dark and knew nothing about the investigations until Tuesday morning when sanctions against the trio were publicized by the US Department of Treasury, and thus could only then seek information from Washington, Theriot explained that that is the protocol for high-profile investigations against corruption. Having worked in Haiti where she said she witnessed the same process, she explained, “My understanding is… they have to keep these investigations very close-hold because they can be compromised by anyone and so we tend to not share a lot of information until the investigation reaches a certain stage.” “And so I regret that people feel they’ve been left in the dark but in the United States it would be exactly the same way, if we were conducting an investigation against someone accused of corruption in the United States. We would not share that investigation until were at a stage where that is possible,” she added. The United States Department of the Treasury last Tuesday imposed sanctions on businessmen Nazar Mohamed and his son, Azruddin Mohamed, over the alleged massive smuggling of gold, and on Permanent Secretary in the Ministry of Labour, Mae Toussaint Jr Thomas-Meerabux who was cited for alleged corruption, leading to her being immediately sent on leave by the government here. Allegations against the Mohameds include defrauding the government here of some US$50 million in taxes from smuggled gold, as well as bribing public officials.
BoG revokes Mohamed’s cambio licence: The Bank of Guyana last Thursday revoked the licence for Confidential Cambio which is owned by Nazar Mohamed, a move government says stems from the sanctions imposed on the Mohameds by the United States on Tuesday. “Members of the Public are hereby advised of the revocation of the licence of Confidential Cambio situated at Lot 29 Lombard Street Werk-en-Rust, Georgetown in accordance with the Dealers in Foreign Currency (Licensing) Act 1989. As a consequence, the entity is no longer authorized to conduct the business of buying and selling of foreign currency,” the bank said in a notice to the public.
Confidential Cambio is a part of the Mohamed’s Enterprise which is situated on Lombard Street, Georgetown. While the bank did not provide a reason for the revocation, Vice President Bharrat Jagdeo yesterday told a press conference that the revocation was a result of Tuesday’s US sanctions. He also added that Guyana’s Financial Intelligence Unit (FIU) and the Bank of Guyana would be conducting an assessment of the implications of Washington’s sanctions on Guyana’s financial sector.
Toussaint Jr Thomas resigns from PPP/C executive: Amid US sanctions over alleged corruption, Mae Toussaint Jr. Thomas-Meerabux, has resigned from the executive of the PPP/C, but her position as Permanent Secretary of the Ministry of Labour remains up in the air. “Mae has subsequently sent me a letter as General Secretary of the party, to resign from the Central Committee of the party. She has indicated that she did not want to bring the party into disrepute… she said ‘I’m available. I maintain my innocence and I’m available for any investigation,’” Vice President Bharrat Jagdeo told a press conference at the Office of the President last Thursday. He explained that Thomas’ resignation from the party was a hard blow as she is one of the hardest workers on the team and this was seen from her efforts during the 2020 Elections period and beyond. “This is a hard thing because she is a tough worker. Those people who know her in the party know how hard she worked in the party,” he added. Jagdeo said that as government investigates the allegations, Thomas “understands that she will have to face the consequences,” but he believes that her being caught up in the investigations and being sanctioned “is still unfortunate from a human perspective.” On sanctioned businessman, Nazar Mohamed who serves as a PPP/C representative of the Eccles/Ramsburg NDC, Jagdeo said, “All the other agencies are looking at the implications and I guess the report will go to the President and the Cabinet to look at the implications, the other implications of the sanctions.”
Bilateral
US will continue to help Guyana, region curb illegal arms trade: The United States Under Secretary for Arms Control and International Security, Bonnie Jenkins, last week said that her country continues to work with Guyana and the Caribbean to curb illegal arms coming into the region, and that this country is one which is producing an action plan for which US funding is available. “We have the export ban. We are trying to do what we can on the US side to reduce the export of illegal arms. We have put the ban as we try to figure the best way forward to ensure that small arms do not get in the hands of non-state actors as well as those who should not be having possession of it,” she yesterday told a press conference held at the US Embassy.
“…We will continue to work with Guyana and other countries in the region… we are also working with CARICOM to provide funding to countries who are developing national action plans to try to address these issues,” she added.
Ambassador Jenkins said that Guyana was one of the countries that is developing an action plan and which when completed, will be granted financial aid. She did note that while it is a financial initiative, the US continues to provide capacity and other forms of building and support here.
“A lot of it is financial, but we work with the government…”, she explained.
She said that the issue of illegal guns being imported here was an area discussed not only with government as other stakeholders have expressed concern. “From all the conversations I’ve had while here in Guyana, that’s been a topic we talked about. We recognise concerns of the government and individuals here… we are working very closely with Guyana to address this issue and also with CARICOM,” she asserted.
Oil & Gas
Exxon’s Guyana subsidiary declared profit of $614b for 2023: ExxonMobil Guyana Limited (EMGL) declared a net profit of $614.6b for 2023, up by $36.9b compared to 2022 and its revenue from last year was almost equivalent to Guyana’s entire budget for 2024. The first Annual Report under its new name, EMGL which was changed from Esso Exploration and Production Guyana Limited last year, the ExxonMobil subsidiary stated that it encountered five dry holes, compared to one in 2022, but that that will not deter their commitment to the Production Sharing Agreement (PSA) it has with this country to maximize exploration in the Stabroek Block. “In 2023, as you can see in the financial statement, was another profitable year. We increased our profits year over year to around GUY$600b. It is reflective of building on the successes of prior years,” Vice President and Business Services Manager, Phillip Rietema on Thursday told a press briefing following the distribution of the Annual Report. And as the company celebrates 25 years since it signed the PSA with Guyana in 1999, its records show that revenue for last year was pegged at $1.108 trillion. Guyana’s entire budget this year was $1.146 trillion, underlining the massive take ExxonMobil and its two other partners are getting as a result of the controversial 2016 PSA. Also of note in the report was the huge increase in exploration costs over the period, highlighting the company’s aggressive programme and further deferring increased profits to Guyana. Exploration costs in 2022 were pegged at $8.74b and this figure zoomed to $55.49b last year. Royalty paid to Guyana rose from $18.89b in 2022 to $21.92b last year. Production costs went up slightly from $39.74b in 2022 to $41.12b last year. Lease interest expense climbed significantly from $21.94b in 2022 to $38.35b last year. Controversially, its income tax expense jumped from $59.38b in 2022 to $138.18b in 2023. Based on the 2016 PSA, Guyana is paying this income tax on behalf of ExxonMobil and therefore the state is not benefiting from this tax. ExxonMobil is however able to state that it has paid such taxes as the report does indicate. The report is replete with statements about ExxonMobil’s financial impact on the economy, an attribute that jars with years-long criticism of the 2016 PSA as a giveaway with a paltry 2% royalty, no ring fencing of costs and serious questions over claims for expenses.
Industrial
GTU presents new proposal, says gov’t inflexible: Though the Guyana Teachers’ Union (GTU) and the Ministry of Education (MOE) again failed to reach an agreement on ending a prolonged strike at last Monday’s meeting under the auspices of the Ministry of Labour, the union has put forth a proposal for a new multi-year agreement, to be completed within 30 days. The meeting ended with the ministry promising to consider the proposal and their decision would determine whether or not talks will resume at another date. The multi-year proposal would now span the years 2022 to 2025, a timeframe the union had previously hinted at for a compromise. Previously the union had called for negotiations to cover 2019 to 2024. It has now removed 2019, 2020 and 2021 from the equation. There was no word from the government yesterday on this proposal. The government has stuck to the position that talks will only be held from 2024. Speaking yesterday following the conclusion of the meeting, GTU President Mark Lyte expressed his concern that the ministry is not demonstrating a willingness to negotiate and find common ground. Outside the Ministry of Labour yesterday afternoon, Lyte told members of the media that the meeting focused on the terms of resumption, including a 30-day timeframe for the completion of negotiations on the proposed multi-year financial package for teachers. However, he charged that the ministry has continued to show unwillingness to compromise on an interim payment to teachers pending the conclusion of negotiations. Lyte argued that the union has been flexible towards negotiations, but the ministry has not reciprocated. GTU General Secretary Coretta McDonald also expressed frustration with the ministry’s stance, saying that they are not willing to negotiate and are instead trying to bully their way through the process. McDonald emphasized that the union is concerned about the state of education in Guyana and wants to see teachers return to schools with something substantial.
Aviation
Zapped runway lights at CJIA restored: With the runway lights completely restored last Monday, night flights to and from the Cheddi Jagan International Airport (CJIA), Timehri fully resumed. The airport’s Facebook page had announced that the first of the two circuits which were damaged on Sunday night was in operation and night flights were expected. The statement said that the update was conveyed to airlines through a Notice to Airmen (NOTAM). “As of now, the airport has accommodated ten flights, comprising a private aircraft, a cargo plane, and eight-passenger flights,” the post said. In a later statement the airport noted that all circuits were fully operable. Several flights, it added, were scheduled to land at CJIA on Monday night. Due to severe thunderstorms and lightning strikes on Sunday night, two independent circuits at the airport runway were damaged, causing the lights to go out. As a result, an American Airlines flight had to be diverted to Port of Spain Trinidad & Tobago, a Jet Blue flight to San Juan Puerto Rico, and an Inter-Caribbean Airlines flight was forced to return to Barbados.
Following the incident, a statement by CJIA late Sunday night said that the airport’s maintenance team, with the help of personnel from the Guyana Power and Light (GPL), was working to rectify the situation. “CJIA will now undertake a thorough evaluation of the current lightning protection system to enhance resilience against future lightning strikes. The airport extends its gratitude to its stakeholders and the traveling public for their support during the recent disruptions,” the latest statement had said.
Politics
Trouble in APNU camp, PNCR says purported election for new executive not valid: Battling internal opposition with his party’s congress fast approaching, PNCR Leader Aubrey Norton faced another serious challenge when the APNU coalition the party had been instrumental in forming announced it had held a meeting and that Vincent Henry of GAP was the new chairman. The stunning development came to notice after the PNCR issued a statement on June 8th declaring that any purported election for A Partnership for National Unity (APNU) was null and void. APNU had been the brainchild of former PNCR Leader and President David Granger. It was formed in July 2011 in order to contest the 2011 general elections and in addition to its main force, the PNCR, comprised smaller parties such as the Guyana Action Party, the Justice for All Party, the National Democratic Front and the Working People’s Alliance. APNU joined up with the AFC in 2015 and unseated the PPP/C government but before and after it lost office in 2020, it had been in disarray. The PNCR, which said it held the position of chair and Norton was in the post, declared that he did not send out any notice for an APNU meeting or elections. “What purports to be an APNU elections is unauthorized and null and void. As is well known, the APNU has no General Secretary since none was elected after the resignation of Mr Joe Harmon”, the PNCR thundered. The party said that any claim that it had been invited to a meeting was totally untrue as it received no such invitation. Moreover, it said that there was no one with locus standi to send such an invitation even as it said it remained committed to the principles of coalition politics in Guyana. The other members of APNU fired back at the PNCR. According to an APNU statement last night, any member of the Executive Council has the right to request a meeting, and on 3rd June 2024, a letter calling for an immediate meeting of the APNU Executive Council was sent to Norton, via email. A reminder was also dispatched on 5th June 2024. According to reports from APNU, no excuse was received from PNCR for its absence, prompting the meeting to commence without their participation. Countering to PNCR’s claim of not being notified about the meeting or elections, APNU asserts that meticulous efforts were undertaken to guarantee transparency and inclusivity throughout the process. It firmly rejects the assertion by the party, underscoring the significance of every member, including PNCR, within the partnership.
Norton garners vast majority of nominations for Leader – PNCR: Incumbent PNCR Leader, Aubrey Norton last Monday clinched the vast majority of nominations for the leadership post at the June 28-30 Biennial Delegates Conference and he was followed by Roysdale Forde SC and Amanza Walton-Desir. According to Congress Place, a total of 218 groups participated in the nominations, representing all 10 Administrative Regions alongside significant bodies such as the National Congress of Women and the North American Overseas Group. Leadership aspirations saw a diverse array of contenders, with 7 individuals nominated by various groups: Aubrey Norton emerged as the frontrunner with backing from 177 groups, Roysdale Forde with 20 groups, Amanza Walton-Desir with 9 groups, Carl Greenidge with 4 groups, and Simona Broomes with 2 groups, Volda Lawrence with 1 group, Gary Best with 2 groups, Similarly, the Chairmanship contest showcased 7 candidates. Shurwayne Holder, the incumbent, secured 173 nominations, leading the pack, trailed by Volda Lawrence with 20 nominations, Roysdale Forde with 9 nominations, Amanza Walton-Desir with 7 nominations, Christopher Jones with 3 nominations, Sharma Solomon with 2 nominations, Simona Broomes with 1 nomination. Amidst the hustle and bustle of Nomination Day, Randolph Critchlow, a supporter of MP Amanza Walton-Desir, shared his enthusiasm with Stabroek News. He described the day as “exciting,” recounting the journey from Red shop to Congress Place to submit their list. Critchlow expressed satisfaction at Walton-Desir’s nomination, highlighting the broad support she garnered nationwide. Looking ahead, he noted the official start of the campaign and the impending climax on the 28th, 29th, and 30th when delegates will convene to cast their votes, underscoring the intricate selection process based on party group representation.
Investment
World Bank approves US$45m coastal drainage project: The World Bank has approved a US$45m project to help Guyana adapt to climate change and reduce flood risk on its coast and over 45 drainage assets are to be repaired or replaced. Financed by Norwegian grant money, the initiative is set to benefit around 320,000 people, approximately 40 percent of the country’s population, including the most vulnerable, according to a release yesterday from the World Bank. It noted that Guyana is among the countries most vulnerable to climate change. “Studies have shown that rising sea levels, among the highest in the world, expose 100 percent of the country’s coastal agriculture and 66.4 percent of its coastal urban areas to flooding and erosion, with potential GDP losses that could exceed 46.4 percent”, the World Bank said. The release pointed out that Guyana’s coastal drainage system comprises an intricate network of canals, culverts, sluices, and pumps. “Over time, its operational capacities have declined due to insufficient investments in maintenance and growing flood risk arising from urbanization and the impacts of climate change. Following the 2005 floods, the government re-emphasized the importance of flood risk management and increased the National Drainage and Irrigation Authority’s budget”, the release said. The new Coastal Adaptation and Resilience Project will add to existing efforts to enhance flood risk management in Guyana. The project will repair or replace more than 45 drainage infrastructure assets, focusing on sluices. Investments will take into consideration projected land uses, population growth, urbanization, and climate change impacts to enhance drainage for efficient rainfall runoff discharge, improve flood protection and bolster irrigation services. “This initiative builds on a long-standing engagement between the World Bank and Guyana on strengthening resilience to flooding and natural hazards. With this operation, we are reinforcing Guyana’s efforts to maximize disaster risk management while protecting lives and reducing inequalities in the long term,” said Diletta Doretti, World Bank Group Resident Representative for Guyana and Suriname. “This project is also a critical component of Guyana’s Low-Carbon Development Strategy, aligning with the country’s broader vision for climate resilient growth,” she added. The project will work closely with Guyana’s Ministry of Agriculture to help it effectively manage and operate the drainage system.
Accident
Teen motorcyclist killed in crash at Linden: Stephen Burnett, a 17-year-old motorcyclist of Central Amelia’s Ward, Linden, lost his life in a collision at the intersection of Amelia’s Ward Public Road and Toucan Drive in Linden, on June 8th. Police are investigating the incident which occur-red at about 14:00 hrs, involving a motorcar (PAC 9289) driven by a 31-year-old woman from Amelia’s Ward, and motorcycle CM 971 ridden by Burnett of Lot 5946 Central Amelia’s Ward, Linden. Enquiries disclosed that the motorcar was proceeding west on the southern drive lane on Amelia’s Ward Public Road when the driver used her right indicator light to signal she was turning north into Toucan Drive. In the meantime, Burnett, who was riding the motorcycle without a safety helmet, overtook a line of vehicular traffic at a fast rate and collided with the right-side front door and then the front windshield of the car. The police press release said the motorcyclist fell onto the road surface, sustaining injuries to his body. He was picked up in an unconscious state and taken to the Linden Hospital Complex, where he was pronounced dead on arrival by a doctor on duty. The driver of the motorcar, who is pregnant, also sustained injuries to her body. She was treated and admitted as a patient at the hospital with neck and body injuries.
In the courts
Man remanded over AK-47, ammo after Kitty police raid: Thirty-seven-year-old Edinho Lewis, of Lot 25 Shopping Plaza, South Ruimveldt Gardens, appeared before Chief Magistrate (ag) Sherdel Isaacs-Marcus last Tuesday at the Georgetown Magistrate’s Court where he was charged with five offences including possession of an AK-47 rifle. It was alleged that on June 8, at Lot 126 Da Silva Street, Newtown, Kitty, he had in his possession 544.5 grammes of cannabis, and 1,079 grams of cocaine all for the purpose of trafficking. It was also alleged that he had in his possession, three Colt AR 15 magazines, one AK-47 magazine, three Glock magazines, four rounds of .223 ammunition, nine rounds of 9mm ammunition, 830 rounds of 7.62 ammunition, one AK-47 rifle, and a Glock 26 pistol, without being the holder of a firearm licence. Lewis pleaded not guilty to all the charges.
