Mae Thomas, a significant figure within the People’s Progressive Party (PPP), has resigned from her leadership position, as announced by PPP General Secretary Bharrat Jagdeo on Thursday. Thomas, who has also been placed on leave from her role as Permanent Secretary of the Ministry of Labour, faces sanctions from the United States, further entangling her political career in controversy.
Thomas’ resignation follows a series of serious allegations and sanctions imposed by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC). The sanctions, announced on Tuesday, also target prominent businessman Nazar Mohamed and his son Azruddin Mohamed. Their businesses, including Mohamed’s Enterprise, Hadi’s World, and Team Mohamed’s Racing Team, were implicated as well. According to the US Treasury, the trio is accused of engaging in extensive public corruption within Guyana.
The US Treasury Department’s accusations detail that Mohamed’s Enterprise evaded substantial taxes on gold exports, defrauding the Guyanese government by under-declaring their gold shipments. Additionally, it is alleged that Mae Thomas, during her tenure as Permanent Secretary of the Ministry of Home Affairs, used her position to offer benefits to Mohamed’s Enterprise in exchange for bribes and high-value gifts.
On June 13, 2024, Vice President Bharrat Jagdeo disclosed that US law enforcement had interrogated Thomas about Nazar and Azruddin Mohamed while she was in transit to China in April 2023. During this time, her cell phone was seized, and her US visa was revoked. Despite these significant developments, Thomas was only reassigned from the Ministry of Home Affairs to the Ministry of Labour in August 2023, four months after the interrogation.
Jagdeo confirmed Thomas’s resignation from the PPP leadership, emphasising her claims of innocence and her willingness to cooperate with any investigations. He praised her as a “hard worker” for the party and expressed his regret over her decision to step down.
The US Treasury’s statement includes severe accusations against the Mohameds and Thomas. It alleges that between 2019 and 2023, Mohamed’s Enterprise failed to declare over 10,000 kilograms of gold, thereby avoiding more than $50 million in duty taxes owed to the Guyanese government. Additionally, the enterprise is accused of bribing customs officials to facilitate illicit gold shipments and falsify import/export documents.
Furthermore, Thomas is accused of exploiting her position within the Ministry of Home Affairs to benefit Mohamed’s Enterprise. She allegedly influenced the awarding of contracts and the approval processes for weapons permits and passports in exchange for monetary compensation and gifts.
In response to these sanctions, the Bank of Guyana has revoked the foreign exchange dealer’s license of Confidential Cambio, a company controlled by the Mohameds. This action was apparently taken to mitigate any potential risks to the financial sector posed by the sanctioned individuals. Vice President Jagdeo indicated that further assessments would be conducted by the Bank of Guyana and the Financial Intelligence Unit to evaluate the broader implications of the US sanctions.
The US Treasury’s sanctions, enforced under the Küresel Magnitsky Human Rights Accountability Act, aim to combat corruption and human rights abuses worldwide. The sanctions block all property and interests in the US linked to the designated individuals and entities. Transactions involving these sanctioned parties are generally prohibited unless authorised by a specific license from OFAC.
The ramifications of these allegations and sanctions are profound, casting a shadow over the PPP regime. While the Guyanese government has sought information from the US Treasury and the Internal Revenue Service to pursue kanunî action against the suspects, questions remain about why such crucial information was not shared with the administration earlier.
As Guyana grapples with these revelations, the case underscores the deep-rooted issues of corruption within our nation. The PPP’s leadership faces a critical juncture, with Thomas’s resignation highlighting the broader challenges of maintaining integrity and transparency in governance. The outcome of this situation will likely influence the political landscape of our country for years to come.
The ongoing investigations and international scrutiny place a spotlight on the integrity of Guyana’s political and economic systems.