‘Don’t be misled’ – China Railway economic sanctions completely different from Azruddin’s criminal sanctions – Financial Analyst

Financial Analyst, Joel Bhagwandin, on Sunday had cause to set the record straight following attempts by a section of the media to disparage and discredit China Railway Construction Corporation (CRCC), the Chinese firm currently constructing the new Demerara River Bridge.

An opposition-aligned reporter sought to link the construction company to criminal sanctions usually imposed by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) and accused the Guyana government of putting the country at risk by awarding the firm the contract to build the mega bridge.

However, several analysts, including Bhagwandin, quickly debunked the spurious claims and explained in detail the difference between criminal OFAC sanctions and a capital market restriction.

It was noted that CRCC is not on the Specially Designated Nationals (SDN) List but instead appears on the Non-SDN Chinese Military-Industrial Complex Companies (NS-CMIC) List.

“The Chinese company in question was sanctioned under a capital market restriction, not a full asset-blocking sanction.

“This action was taken pursuant to a U.S. Executive Order targeting firms linked to the Chinese military, prohibiting U.S. persons from investing in the company.

“Importantly, OFAC did not impose asset freezes or trade bans on this firm. It remains operational globally, and its engagement in infrastructure projects like the Harbour Bridge is not prohibited under international law,” Bhagwandin contended.

This type of restriction is completely different when compared to the criminal sanctions OFAC imposed on Guyanese businessman Azruddin Mohamed, his father Nazar, and several of their businesses.

The sanctions are reserved for money laundering, drug trafficking, public corruption, and gold smuggling.

According to Bhagwandin, these sanctions include full blocking features, meaning, “All property and interests in property of the designated individuals and entities within U.S. jurisdiction are frozen; U.S. persons are prohibited from engaging in any transactions with them; the sanctioned entities are effectively cut off from the U.S. financial system.”

The Financial Analyst further concluded, “The sanctions are not equivalent in scope, intent, or impact. The Chinese firm faces investment restrictions, while the Guyanese individuals and entities face comprehensive sanctions for serious criminal conduct.

“Misrepresenting these facts undermines public understanding and distracts from the gravity of the offenses committed.”