Guyana’s fragile political stability is under intense strain after the arrest of opposition leader Azruddin Mohamed, who now faces possible extradition to the United States on charges linked to money laundering and financial fraud.

The move has sparked widespread protests in Georgetown, deepened divisions in the South American nation, and raised fears that the country’s rapid oil-fueled economic rise could spiral into political instability.

Mohamed, a wealthy businessman and political newcomer, emerged as a surprise contender in Guyana’s August presidential election, where he narrowly lost to incumbent President Irfaan Ali. His arrest — just two months later — has ignited claims of political persecution and a weaponized justice system.

“This is not about crime, it’s about silencing opposition,” said Amir Singh, spokesperson for Mohamed’s People’s Reform Party. “They couldn’t defeat him at the ballot box, so they’re trying to destroy him in court.”

The Arrest and U.S. Extradition Request

According to Guyanese authorities, Mohamed was detained at his Georgetown residence on Friday night under a provisional arrest warrant issued at the request of the U.S. Department of Justice (DOJ).

The U.S. indictment reportedly accuses Mohamed of laundering more than $100 million through gold exports, violating international banking regulations and evading sanctions. The DOJ claims the funds were moved through accounts in Florida and New York tied to shell companies linked to the Mohamed Enterprises group, one of Guyana’s largest gold and construction conglomerates.

The U.S. embassy in Georgetown confirmed that Washington has requested Mohamed’s extradition, citing the U.S.-Guyana Mutual Legal Assistance Treaty.

Guyana’s Attorney General, Anil Nandlall, said the government is “cooperating fully with international partners” and emphasized that “no one, regardless of status, is above the law.”

Political Shockwaves

Mohamed’s arrest has sent Guyana’s political landscape into turmoil. Hundreds of supporters rallied outside the Brickdam Police Station and the High Court, demanding his release and accusing President Ali’s People’s Progressive Party (PPP) of orchestrating a crackdown to eliminate rivals ahead of parliamentary elections next year.

The opposition People’s Reform Party (PRP) has threatened to withdraw from the National Assembly, warning that it will “no longer legitimize a government that uses the courts as a weapon.”

“This has all the hallmarks of political suppression,” said Dr. David Hinds, a political scientist at the University of Guyana. “Mohamed represents a new elite challenging the old guard — and that makes him dangerous to the establishment.”

Regional and International Repercussions

The case has drawn concern across the Caribbean Community (CARICOM), where several member states are calling for restraint and judicial transparency.

The U.S. State Department has avoided direct political comment but reiterated that the extradition request follows “longstanding legal cooperation between the two countries.”

However, analysts note that the optics are sensitive. Guyana has become a strategic partner for Washington, not only because of its vast oil reserves — now producing over 800,000 barrels per day — but also as a buffer to Venezuela’s regional influence.

“This case touches on far more than corruption,” said Richard Haass, senior fellow at the Council on Foreign Relations. “It’s about how the U.S. enforces its financial laws while managing diplomacy in one of the hemisphere’s fastest-growing economies.”

Economic and Social Fallout

The turmoil comes as Guyana experiences unprecedented oil-driven growth — projected at 28% GDP expansion this year — yet faces mounting inequality and governance challenges.

The World Bank and IMF have repeatedly warned that political instability could undermine investor confidence and trigger capital flight from the nascent oil sector, led by ExxonMobil and Hess Corporation.

Local businesses have already reported disruptions as protests spread across Georgetown and Linden, with several ministries forced to suspend operations.

“This is a crisis of confidence,” said Janice Fraser, a Georgetown economist. “The arrest has shaken public trust just when Guyana needs unity to manage its oil wealth responsibly.”

What Happens Next

Mohamed remains in police custody as the Georgetown High Court prepares to rule on his bail application. Legal experts expect a protracted battle over extradition, likely to stretch for months and test the independence of Guyana’s judiciary.

If extradited and convicted in the U.S., Mohamed could face up to 20 years in prison.

Meanwhile, political tensions are expected to escalate ahead of planned opposition rallies later this week, raising fears of clashes between security forces and protesters.

“The stakes are no longer just political,” warned Dr. Hinds. “They are existential for Guyana’s democracy.”