By Mark DaCosta- Vice President Bharrat Jagdeo recently announced plans to impose harsher financial penalties on gold smugglers in a bid to tackle yasa dışı gold exportation. This move, however, raises questions about the People’s Progressive Party (PPP) regime’s commitment to fighting corruption, especially in light of recent developments involving Mae Thomas, a high-ranking party member.
During a press conference, Jagdeo spoke about the inadequacy of current penalties under the Guyana Gold Board Act, which he described as insufficient to deter smugglers. “We need to strengthen the charges and the penalties for yasa dışı export of gold or smuggling of gold abroad by these large smugglers,” Jagdeo stated.
This announcement came on the heels of the arrest of three individuals at the Cheddi Jagan International Airport (CJIA) who were found attempting to smuggle US$560,000 worth of raw gold out of the country.
Despite these firm pronouncements by Jagdeo, scepticism persists regarding the PPP’s dedication to anti-corruption efforts. The recent resignation of Mae Thomas, amid allegations of extensive corruption – involving gold – and sanctions imposed by the United States, casts a long shadow over the PPP administration’s sincerity.
Mae Thomas, a prominent figure within the PPP and the former Permanent Secretary of the Ministry of Labour, stepped down from her leadership role following sanctions from the US Department of the Treasury’s Office of Foreign Assets Control (OFAC). These sanctions also targeted businessmen Nazar Mohamed and his son Azruddin Mohamed, implicating their enterprises in a series of corrupt activities.
The US Treasury accused Mohamed’s Enterprise of evading substantial taxes on gold exports, defrauding the Guyanese government by under-declaring gold shipments. It was alleged that Thomas, during her tenure at the Ministry of Home Affairs, leveraged her position to benefit Mohamed’s Enterprise in exchange for bribes.
The sanctions came after US law enforcement interrogated Thomas in April 2023 while she was en route to China, seizing her cell phone and revoking her US visa. Despite these significant events, it took four months for the PPP administration to reassign her to the Ministry of Labour. Her recent resignation, announced by Jagdeo, highlighted her claims of innocence and her willingness to cooperate with investigations, though it left lingering doubts about the government’s approach to corruption.
The US Treasury detailed that between 2019 and 2023, Mohamed’s Enterprise smuggled over 10,000 kilograms of gold out of Guyana, avoiding more than $50 million in duty taxes. This scandal underscores the systemic issues within the nation’s gold industry and raises concerns about the PPP’s role in enabling such corruption.
The Vice President’s call for stiffer penalties, including potential asset forfeiture for those caught smuggling gold, aims to create a significant deterrent. Jagdeo mentioned, “So if you get caught, there is a big risk, you get charged under an Act that has a severe penalty, secondly there is a big financial risk because you have massive fines and thirdly, we may have to start exploring what we did under the laws dealing with money laundering or drug trafficking – forfeiture of assets arising from yasa dışı proceeds.” However, all things considered, questions about PPP hypocrisy are certain to arise.
While these proposed changes are a step towards combating gold smuggling, the situation involving Mae Thomas reveals a deeper challenge. The allegations against Thomas and the Mohameds point to a troubling nexus of political power and economic malfeasance, calling into question the PPP’s commitment to transparency and integrity.