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Government reaffirms position on cabotage expemtions

2 min read

GEORGETOWN, Guyana, Mar 4, CMC – The Guyana government Tuesday explained why it granted no permission to the locally  based, Hadi’s World, or any of its associates for the conduct of cabotage operations in the country.

Cabotage operations are when a foreign company transports goods or passengers between two locations in the same country. The term originated in shipping, but now applies to other modes of transportation, including aviation and road.

The Maritime Administration Department (MARAD) of the Ministry of Public Works had earlier said that any previous exemptions granted have expired and consequently, those vessels are not lawfully allowed to operate within Guyana. It did not elaborate.

But in a statement later on Tuesday, MARAD said it  wanted to clarify “a matter of public interest which has generated considerable attention and inquiries”.

According to MARAD, on June 11, 2024, the United States government, through the Department of Treasury’s Office of Foreign Assets Control (OFAC), announced sanctions against Nazar Mohamed and his son, Azruddin Mohamed, citing their involvement in large-scale tax evasion, gold smuggling, money laundering and other forms of public corruption in Guyana.

MARAD said that sanctions were also extended to Mohamed’s Enterprise, Hadi’s World, and Team Mohamed’s Racing Team, all of which are entities owned or controlled by the Mohameds.

“In view of these developments, and in adherence to OFAC’s advisory warning that “financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action,” MARAD has taken the decision not to renew the cabotage permission previously granted to Hadi’s World.

“This permission, which allowed foreign-flagged vessels to operate on coastal voyages in Guyana’s waters, expired on February 12, 2025, and has not been extended,” MARAD.

It said, accordingly, “MARAD hereby advises that any foreign-flagged vessel currently operating on behalf of Hadi’s World within Guyana’s maritime space, including Motor Tugs: Amelia and Machelo, and Deck Barges: Miriam and Carmelia, is doing so illegally.

“MARAD remains committed to upholding the integrity of Guyana’s maritime operations and ensuring full compliance with both national laws and international obligations,” the updated statement added.

In the earlier statement, the government warned that “any vessel conducting cabotage operations without the requisite permit shall be subject to detention and/or any other penalties under the laws of Guyana”.

CMC/gt/ir/2025