Showing posts with label Roca. Show all posts
Showing posts with label Roca. Show all posts

Sunday, May 8, 2011

Corruption in Cuba - Greed or just survival?


Corruption. Unfortunately it’s a way of life in Cuba due to the failure of Communism and a centrally controlled economy. 

A visit to the Black Market is an every day event for most Cubans so they can “resolve” the challenges of living in Cuba. When you see the word “resolve” used in this way, it means to borrow (and never return) something, usually from the government.

Three generations of Cubans have lived this way. Couple this with the “go along to get along” mentality in order to stay out of trouble in Cuba and there is little reason to wonder why there is corruption in Cuba.

Everyone is careful not to “resolve” too many problems or too be too successful or too openly critical of the government or to be too corrupt but, cross the invisible, moving line and you are arrested. You are removed from your state job and even your family may suffer in one way or another by losing their job, a promotion or some other perk from the cradle-to-grave Cuban social security/free healthcare/free education system.

I just read Cuba: Catching Kleptocrats by Nick Miroff from Global Post.

He writes “As part of his economic reform push, Castro wants to give more independence to Cuba’s state companies and local governments, freeing them from the need to obtain Havana’s permission for every little decision and expenditure. But a series of corruption scandals among Cuban executives in recent months has been a reminder as to how the island’s state-run economy got so centralized in the first place. As soon as the government eases up its controls, company managers steeped in graft tend to get even greedier.”

Manuel Garcia - Habanos

Manuel García, Habanos’s commercial vice-president has been in jail since August 2010. He and ten of his staff also face corruption trials for allegedly accepting bribes in exchange for selling Cuban cigars at a discount to black market distributors.

Rogelio Acevedo - Cubana

Nick goes on to write “Rogelio Acevedo, the country’s former top aviation official, was arrested last year for allegedly running a side business that chartered jets of the national airline, Cubana de Aviacion, for outrageous personal profit. There are also new reports this week that executives in the country’s lucrative nickel-processing industry are in custody and facing corruption charges.”

Alejandro Roca - Food Ministry

As reported in Granma (the “you read what we want you to read newspaper), Roca has been sentenced to fifteen years in prison after being found guilty of several crimes “continuously accepting bribes and acts harmful to economic activity”.

Max Marambio - Chilean businessman

Friend of Fidel Castro, Chilean businessman Max Marambio was sentenced to twenty years in prison for the crimes of accepting bribes, fraud, and falsification of bank or trade documents with regards to his Rio Zaza company. The crimes committed were particularly grave and required a vigorous legal response, in correspondence with the extensive damage to the national economy. This trial was connected to the Roca trial. Both men were convicted in absentia. There was no mention as to why Roca was not present.

Pedro Alvarez - Alimport and Cuba Chamber of Commerce

Pedro Alvarez, former President of the purchasing agency Alimport who then moved (or was moved) to the Cuban Chamber of Commerce is under investigation for alleged corruption. It has been reported that he was detained several times by the Technical Investigations Department in Havana.

Summary

In April 2010, Esteban Morales, said some top Cuban officials are preparing to divide the spoils if Cuba’s political system disintegrates. He continued “In reality, corruption is much more dangerous than so-called internal dissent,” Morales wrote in the piece, which appeared on the Web site of the state National Artists and Writers Union of Cuba. “The latter is isolated ... but corruption is truly counterrevolutionary because it comes from within the government and the state apparatus, which are the ones that really control the country’s resources.”

In November 2010 we heard from a source who believes that many of these charges may be “inflated” and targeted against people loyal to Fidel Castro. In other words, there is speculation that Raul Castro is removing anyone loyal to Fidel. As many know, Carlos Lage and Felipe Perez Roque were removed from office for being seduced by the “honey of power”.

So, today, maybe Raul is done cleaning house or maybe the new economic opening is seducing more government officials to be corrupt or maybe the Cuban government is looking harder for corrupt officials. The Global Post article is wrapped up this way “Cuba’s Comptroller General Office’s is currently engaged in an audit of 750 state companies, sending 3,000 investigators to look into “all sectors, all organizations and territories” and evaluate “discipline, legality and economic control,” Comptroller General Gladys Bejerano announced on state television last month. So more managers may fall in the coming weeks.”

Life in Cuba is the definition for “Damned if you do and damned if you don’t”.

Rob Sequin 

Source: Havana Journal


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  • Thursday, May 5, 2011

    Chilean businessman, ex-minister get long-term sentences

    Max Marambio (l) and Castro in the "friendship" times.

    Ending a one-year trial, a provincial court in Havana sentenced a former food industry minister and a Chilean investor to long prison terms.

    A report in Granma said ex Food Industry Minister Alejandro Francisco Roca Iglesias must serve 15 years, after the court convicted him in March of “repeated bribery” and “acts to harm economic activity,” while Max Marambio, who was sentenced in absence, must serve 20 years on convictions of bribery, fraud and falsification.

    In both cases, the court followed the guidance of prosecutors.

    Marambio, via his Twitter account from Chile, denounced the sentencing as “pure political persecution” and challenged the Cuban government to ask a Chilean court for his extradition. “They never sent anything,” he wrote.

    He was represented by a court-appointed defender. The political insider-turned-businessman and long-time resident of Cuba has not returned to the island since fall 2009. He filed legal proceedings against Cuba before the court of arbitration of the Paris-based International Chamber of Commerce (ICC) in October 2010.

    The Havana court’s ruling can be appealed before the Superior Court within 10 days.

    Neither did the Granma article provide any details of the allegations, nor has there been any other official information as to what the pair’s alleged crimes actually consisted of.

    “The charges of the prosecution were duly proven, and [the court] took into account that the crimes committed are of particular seriousness, requiring an energetic response for punishment that corresponds to the many damages to the national economy caused by the accused, to the detriment of the ethical behavior of various officials and subordinated workers,” Granma said, without explaining details.

    Marambio claims part of the accusations stem from his paying generous benefits to Cuban employees. According to Chilean press reports, Roca is accused of making considerable bank deposits abroad from illicit commissions. A son of Roca’s works for Marambio in Chile.

    The sentencing puts an end to a two-year investigation and trial that prompted broad media coverage in Chile. It comes on the heels of several cases of destitution and investigation against state company executives, most recently the imprisonment of a long-term executive at cigar company Habanos S.A. on corruption charges.

    Roca Iglesias.
    Roca Iglesias, 75, was minister of food industries from 1976 to March 2009. He lost his minister job the same time as Foreign Minister Felipe Pérez Roque and Vice President Carlos Lage.

    Marambio, 63, made it into Cuba’s inner circles of power under Fidel Castro. The former student leader in Chile and body guard of President Salvador Allende fled to Cuba after the 1973 coup, where he became a member of Cuba’s special forces, and founding chief executive of the CIMEX holding — today Cuba’s largest business conglomerate. In the 1990s, he used his close relationship with the Cuban government to build a thriving business, the Havana-based Alimentos Río Zaza joint venture. Early last year, the government shut down Río Zaza, which produced and sold processed food products in Cuba to the tune of $100 million a year, and took back Marambio’s house in Havana.

    As of October, two Río Zaza executives were imprisoned in relation to the investigation, according to Marambio; the government hasn’t released any information about related cases.

    Source: Cuba Standard


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