Leaked documents expose billions in military funds as Cubans struggle

[ryan robertson]

LEAKED FINANCIAL DOCUMENTS ARE SHEDDING LIGHT ON A STARTLING REALITY IN CUBA. WHILE THE COUNTRY FACES SEVERE SHORTAGES OF MEDICINE, FOOD, AND ENERGY,THE MIAMI HERALD IS REPORTING THE COUNTRY’S MILITARY-CONTROLLED CONGLOMERATE, GAESA (GUY-ES-AH), HOLDS BILLIONS OF DOLLARS IN ASSETS.AND THESE FUNDS REMAIN UNTAPPED WHILE THE NATION ENDURES ITS WORST ECONOMIC CRISIS IN DECADES.

ONE GAESA-OWNED COMPANY, GAVIOTA, REPORTEDLY HAS $4.3 BILLION IN ITS ACCOUNTS.—THAT’S ENOUGH TO COVER CUBA’S ANNUAL MEDICATION NEEDS, ESTIMATED AT $339 MILLION, MORE THAN TEN TIMES OVER.

MEANWHILE, ANOTHER GAESA ENTITY, ALMEST, ALLEGEDLY DIVERTED PUBLIC FUNDS AND FOREIGN LOANS INTO HOTEL CONSTRUCTION, EVEN AS HOSPITALS LACK 70% OF ESSENTIAL MEDICATIONS AND THE ELECTRICAL GRID FREQUENTLY COLLAPSES.

CUBA’S GOVERNMENT HAS LONG BLAMED U.S. SANCTIONS FOR ITS ECONOMIC STRUGGLES, BUT EXPERTS ARGUE IT’S NOT THAT SIMPLE. DECADES OF POOR MANAGEMENT AND GAESA’S SECRETIVE HANDLING OF THE NATION’S HARD CURRENCY PLAYED A MAJOR ROLE. THE CONGLOMERATE OPERATES OUTSIDE OF GOVERNMENT OVERSIGHT, CREATING WHAT SOME CALL A “PARALLEL ECONOMY.”

THE HUMAN TOLL IS DEVASTATING. SOCIAL MEDIA VIDEOS SHOW CUBANS SEARCHING THROUGH GARBAGE FOR FOOD, WHILE SEVERE FUEL SHORTAGES FORCED PEOPLE TO USE BICYCLES TO TRANSPORT DEAD LOVED ONES TO FUNERAL HOMES. STILL, BILLIONS CONTINUE TO FLOW INTO TOURISM PROJECTS, EVEN AS HOTEL OCCUPANCY RATES REMAIN WELL BELOW PRE-PANDEMIC LEVELS.70% OF ROOMS SAT EMPTY DURING THE FIRST HALF OF 2023.

GAESA’S REACH DOESN’T STOP AT HOME. THE MIAMI HERALD SAYS THE LEAKED DOCUMENTS ALSO REVEAL HOW GAESA MAINTAINS CONTROL OVER REMITTANCE MONEY — DOLLARS SENT FROM CUBAN AMERICANS IN THE U.S. TO SUPPORT FAMILY MEMBERS ON THE ISLAND — DESPITE U.S. SANCTIONS AIMED AT CUTTING THOSE TIES. THE CREATION OF ORBIT S.A.—A COMPANY MARKETED AS INDEPENDENT FROM THE MILITARY—WAS ACTUALLY A FRONT TO KEEP DOLLARS FLOWING INTO GAESA’S HANDS.

CRITICS ARGUE GAESA’S MISMANAGEMENT AND FOCUS ON LUXURY PROJECTS, LIKE HOTELS, ARE EXACERBATING CUBA’S ECONOMIC COLLAPSE. WHILE THE CONGLOMERATE HOARDS BILLIONS, VITAL SECTORS LIKE HEALTHCARE, FOOD DISTRIBUTION, AND ENERGY REMAIN CRITICALLY UNDERFUNDED. THESE REVELATIONS RAISE PRESSING QUESTIONS ABOUT THE PRIORITIES OF CUBA’S LEADERSHIP DURING A PERIOD OF UNPRECEDENTED CRISIS.

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