Corruption in Cuba - Telephone executives arrested

ETECSA executives arrested, one defected in Panama. 

A new large-scale corruption scandal involving yet another Cuban government ministry, Informatics and Telecommunications, is unfolding in Havana, reported Reuters.

While no statement has been forthcoming from offical Cuban sources, several executives of ETECSA, Cuba’s monopoly telecommunications company, including its President Maimir Mesa, are under arrest, states Havana based journalist Marc Frank on Tuesday.

Reuters further reported:

“Five or six department directors and deputy directors, and maybe a vice president, have been arrested so far and the vice president of logistics, who was in Panama when the investigation began, decided not to return.”

“But the investigation has just begun and many more people might be involved,” the noted the news agency, adding that a retired company vice president was brought to Havana for questioning.

The sources told Reuters that two separate investigations underway, one at ETECSA, involving its booming cellular phone business, and the other into a submarine fiber optic cable financed largely by Venezuela that links Cuba to that country.

The cable reached Cuba in February but has yet to become operative with the online date pushed back from July to September or October. It is unknown whether the corruption case has anything to do with the failure to meet its widely-touted startup date.

The government of Raul Castro has already prosecuted and sentenced dozens of officials and executives for charges and the president says he will continue to come down hard on abuses found.

Soon after succeeding his ailing brother Fidel in 2008, Castro created the Office of the Comptroller General and put the comptroller on the ruling Council of State.

Hundreds of senior Cuban Communist Party officials, state managers and employees have lost their jobs and often their freedom in the shake-up that has followed.

It has included the breaking up of high-level organized graft in the civil aviation, cigar and nickel industries, and at least two ministries and one provincial government.

Sources: Reuters and Havana Times

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In Cuba, capitalism thrives on Craigslist-like sites

Even as the Cuban president, Raúl Castro, fumes over stumbling blocks placed by his own party bureaucracy to economic reforms, the internet is beginning to remove them one by one.

Castro appears to be meeting resistance from communist diehards – or more likely old-fashioned stick-in-the-muds – to his proposals that would allow private ownership in homes and cars, for example on the Communist island.

That simply is not a problem for a handful of internet sites that are, in effect, putting the reforms into practice.
One site, www.sepermuta.com, has been operating for some years, apparently from a base in Miami, and seems to be tolerated by the Cuban government. The site is based on the “permuta”, or “swap”, system.

All housing in Cuba is state-owned but swaps are allowed, as long as no money is exchanged. It has been an open secret for years in Havana, however, that often large sums have changed hands under the permuta system.

By allowing home ownership, Castro’s reforms will in effect legalise the black market in housing. But sepermuta.com has been quoting prices for years.

When beyondbrics checked out sepermuta.com, several of its features were unavailable because of “database errors”, whatever they might be. But some users’ comments were interesting.

One woman wrote that it was a wonderful site and “something I never imagined that ever existed in Cuba”. Where might she have been all those years?

Another pointed to the reality of any internet project in Cuba: access to the population is very restricted. “It’s really difficult to find someone where I work who has internet access and lets people like me get into the site,” wrote one.

Yet another reflected the absence, through unfamiliarity, of market tools that are normal in other countries but not in Cuba. “In Cuba we don’t seems to understand that ads for apartments should specify their size in floor space,” one cybernaut wrote.

“There are ads with five-bedroom apartments that turn out to have only 100 square meters. These must be just cubby holes, not bedrooms,” he or she snorted. “And there are other apartments of 200 square meters with only two bedrooms. Now that is really spacious but you wouldn’t know the difference from the ads.”
However, sepermuta.com is tame by compared with www.revolico.com, the market leader in every sense of the word. In Cuban Spanish a “revolico” is a bit of a mess. The anonymous organisers of the website admit that it is a mess, “but an organized mess”.

Revolico, which is also based in Miami and has frequently been blocked in Cuba, offers a market in everything from homes, cars, casual sexual encounters, language classes … you name it.

Most of what is on offer is not legal – not yet anyway – though some is tolerated. A photo of a $30 a night apartment on offer to foreigners in central Havana gives a glimpse of a comfortable lifestyle not shared by the Cubans whose rather spartan homes that a beyondbrics correspondent visited on his last trip to the island.
Meanwhile, Raúl Castro appears to be exasperated at the internal opposition to his reforms. In a televised speech on Monday, after days of confabs with party and government leaders, he berated the “psychological barrier to change that is created by inertia”.

And he added: “Not for the first time, I’d say that our worst enemy isn’t imperialism, much less those who get paid within Cuba by the imperialists to do their work for them. The worst enemy is failing to correct our very own errors.”

Maybe Castro could click on a couple of links to see how it’s done. Or maybe he already has.

by Ron Buchanan

Source: beyondbrics

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Raul Castro completes the octogenarian club to rejuvenate Cuban leadership

Cuban President Raul Castro turned 80 on Friday, vowing to rejuvenate the country's aging leadership and its sagging economy.
 
No official events took place as he joins Cuba's club of octogenarians, which already boasts his brother Fidel Castro, 84, and his second in charge, Jose Ramon Machado Ventura, who is 80.

At a recent summit of the Communist Party, Castro said one of his last duties as head of government would be to pave the way for successors.

“Today we face the consequences of not having a reserve of adequately prepared substitutes, with the experience and maturity to assume the new and complex work of leading the party, the state and the government,” he said.

But on Thursday when seeing off former Brazilian president Lula da Silva, Raúl insisted it was a shame he could not retire because he was less than half way through the first of two possible five-year terms, thus hinting he would stand again for the presidency in 2013.

If he were to retire his presumed successors are of the same generation -- vice-president Jose Ramon Machado is also 80, and close confidant Ramiro Valdes is 79.

However in a radical break from the past, Castro has paved the way for more private enterprise, encouraging Cubans to open small businesses and pay taxes on their endeavors.

Cubans have bought more than 200,000 licenses allowing them to go into business for themselves since last October. At the same time, Castro announced massive layoffs in the state sector that will eventually mean the elimination of more than 1 million jobs.

Reform has reached agriculture where families are allowed to farm their plots and sell directly to consumers at market prices. Cuba with ample farmland to feed its population is desperate to cut its imported food bill, mostly from the US and Brazil and which is two billion US dollars per annum.

In that line of action the scheme of free lunches for almost everybody has been gradually abolished and will be limited to the really needy.

Even when there were no plans to mark Raul 80th birthday on Friday, officials anticipated that a grand celebrations is programmed for his elder brother Fidel's 85th in August. Former president Lula da Silva was in Cuba where he met with both Castro brothers, Raul and Fidel, to visit the construction of the Mariel port, 43 kilometres west of Havana. The port restructuring was subsided with a US$ 300 million credit line awarded during Lula da Silva’s term. Lula reported to be “happy” with his trip and his meeting with the Castros.

Source: MercoPress

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Communism 3.0

Would also Castro put these "tours" on sale?

Cuban officials 'studying' how not to act like communists. Oh well, it's progress

Cuba has announced it is "studying" ways that Cuban residents can be allowed to travel outside the country as tourists.

Wow. That's a tall order. Let's hope they put the best minds in the Cuban government on this one.
We can imagine what that study committee's discussions might be like.

Chairman: "OK, folks, we've got to figure out ways Cubans can be allowed to travel outside the country for tourism and actually have them come back. And we don't have a lot of time to come up with an answer -- maybe only years, knowing the majestic efficiency of our great revolutionary government comrades!" 

Member: "Well, rather than reinvent the wheel, maybe we should look at other countries. Is there any other country that actually allows its people to leave whenever they want, for any reason?" 

Silent pause. 

"Nahhhhh," the group says in unison. 

Don't get us wrong. We appreciate that Raul Castro, Fidel's brother and now president, is loosening things up in Cuba. But the thing that best shines a light on how insane communism is, and how stupid communists are, is how they look when they start trying to weasel their way out of the disaster they, themselves, have created.

So, how do you let Cubans go abroad as tourists?

Well, if you're not worried about whether they return -- and you shouldn't be worried about it, unless you're running a prison rather than a country -- then you just do it !

Source: Augusta Chronicle

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Communist jalopy creeps to capitalism

The "good" old times are over long time ago.

The communist utopia that Fidel Castro hoped to bring to Cuba with the revolution he led more than 50 years ago has, from all indications, collapsed into a stifling stasis for everyday Cubans.

Most live in the same abode from birth to death, and struggle to maintain either rickety cars imported from the Soviet Union more than two decades ago, or 1950s-era jalopies that, on these shores, would be wheeled out at classic car shows. Few new products or ideas enter Cuba, thanks in part to America's long-running economic embargo, and few Cubans ever see the world beyond their island thanks to Byzantine travel restrictions.

Anyone who is waiting on the edge of their seat for the regime to fall should probably lean back and get comfortable - a popular uprising like those that brought down totalitarian governments from East Germany to Egypt doesn't appear to be in the offing. But there are some indications that Cuba's rulers are opening the door, a tiny bit, to some economic reforms.

A Communist Party gathering in April approved new guidelines that would allow Cubans to buy and sell houses and cars on a limited basis, let private farmers use state land and, possibly, let cooperatives bypass the maze of state bureaucracy and send their products straight to consumers.

While it's barely American-style, go-go capitalism, it's at least a start. Like a stubborn music buff who refuses to part with his eight-track tapes, Cuba is one of the few remaining communist regimes in the world, and the day when it also crumbles seems an inevitability. One can't help believing that we could help hasten its demise by lifting the economic embargo that has been in effect since the Kennedy administration.

Exposure to other cultures and ways of life has proven to be the undoing of other iron-fisted regimes before, and that's why your garden-variety dictator is reluctant to see satellite dishes sprout up on the sides of those drab apartment buildings that seem to be the hallmark of totalitarian societies. As the late Supreme Court Justice Louis Brandeis once pointed out, "Sunlight is the best disinfectant."

Source: Observer Reporter

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Cuba: Bloggers Reflect on Reforms at Communist Party Congress

The sixth congress of the Communist Party of Cuba (PCC), which was held in Havana from April 16 - 19, may have marked a major turning point for the Cuban economic system, and for Cuban society at large.

As detailed by the BBC, party members approved measures to institute term limits for top party and government leaders, legalize home ownership and sales, and restructure state salaries so that they will be determined in part by the amount and quality of labor performed by workers.

While many US and European news organizations viewed the changes as a great stride towards a market economy, with headlines like “Havana frees up markets—with a caveat” (The Miami Herald) and “Raúl Castro apuesta por reformar la economía y el Partido Comunista en el VI Congreso” [es] [“Raúl Castro is committed to reforming the economy and the Communist Party at the VI Congress”] (El Pais), the rhetoric of the congress itself demonstrated a commitment to strengthening and modernizing, but not marketizing, Cuban socialism.

Bloggers in Cuba, and those who follow Cuba from other parts of the world, offered a diverse range of reactions.

Deisy Francis Mexidor, author of Kimbombo que resbala [es], asked various Cubans for their opinions on the proposed changes. Many were enthusiastic about the ideas proposed, but concerned about how they would be implemented. A journalism student interviewed by Mexidor commented that,

"[La] cuestión es cómo se logrará mantener el socialismo como proyecto sin caer en la economía de mercado.

The question is how we’ll be able to maintain the socialist project without becoming a market economy.

Another interviewee, the manager of a state-owned business, remarked,

"[D]ebemos ser capaces de lograr una mayor productividad, de bajar los gastos y hacer las cosas con mayor eficiencia, de lo contrario no se puede hablar de elevar salarios.

We should be able to achieve greater productivity, to lower production costs, and to do things with greater efficiency—if we can’t do this, we cannot talk about raising salaries."

Pedazos de la isla [es] interviewed various bloggers and journalists who are known for their criticism of the government, including Laritza Diversent, of Las leyes de Laritza [es]. Diversent noted that while some Cubans closely followed and opined on the Congress, many were ambivalent about the outcome because of the lack of progress in years past.

"Desde mi punto de vista el Congreso fue totalmente intranscendente, porque una cosa es lo que hablen ahí, y otra cosa es la que se haga. […] No hay una restructuración del partido o una restructuración democrática.

Pero nada de esto tiene ningún tipo de importancia entre los ciudadanos dentro de Cuba. No tiene ninguna importancia como yo creo que tiene afuera de Cuba. Por supuesto, es porque muy pocos cubanos le interesa la política, o no la entienden, precisamente por estos “va y bienes” de que hoy deciden algo, mañana deciden otra cosa, y entonces vuelven a cambiar. Por toda esta inseguridad nosotros no le hacemos ningún tipo de caso a ese Congreso.

From my point of view, the Congress was totally insignificant, because what they say is one thing, but what they do is another. There is no restructuring of the Party, nor is there democratic restructuring.

But none of this is important for the citizens of Cuba. It has no importance in comparison to the importance it has outside of Cuba. And this is precisely because very few Cubans are interested in politics, or they simply do not understand it. And they feel this way because of the “back and forth” of the government, while one day it says one thing, tomorrow it’ll say another, and so on. Because of this insecurity, we do not pay any attention to this Congress."

In the most radical change brought by the Congress, Raúl Castro himself proposed that top-level positions be limited to two, five-year terms. He emphasized the need for current leaders to encourage and educate younger politicians who would ultimately form the next generation of government on the island, and lamented the party’s inability to do this in the past. Contrary to this rhetoric, the party has elected the now 80 year-old Jose Machado Ventura, former party secretary and an original member of the July 26th Brigade, to the vice presidential seat that was left empty when Raúl took leadership of the country in 2008.

The irony of this choice has been criticized by Cubans on various sides of the political spectrum. Blogger Rogelio Díaz, author of Bubusopía [es] criticized the government’s inability to move forward, in spite of the consensus that this will be the only way for the original revolutionaries to build a sustainable legacy.

"[Lo] más preocupante es que [el liderazgo] todavia está en manos de los mismos sujetos estancadores de todo lo bueno y dinámico y prometedor y renovador y revolucionario de etapas anteriores.

The most worrisome part is that leadership is still in the hands of the same, now stagnating, originators of the great and dynamic and promising and innovative and revolutionary developments of past eras."

Octavo Cerco’s Claudia Cadelo [es] expressed a similar sentiment, writing that the implementation of the economic and political reforms agreed upon by the Congress could only move forward with new leadership in place.

"[Raúl] sabe, tiene que saberlo, que sus promesas sólo se cumplirán cuando él ya no esté en el Comité Central, cuando ya no sea el Primer Secretario de ningún partido, cuando verdaderamente una nueva ola de cargos públicos asuma los poderes.

[Raúl] knows, he has to know, that his promises will be fulfilled only when he is no longer on the Central Committee, when he is no longer First Secretary of any party, when a truly new wave of public officials assume power."

Ellery Roberts Biddle

Source: Global Voices

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Fidel Castro hints he may resign as party chief

"My turn"

HAVANA - Cuban leader Fidel Castro has suggested he may resign as Communist Party chief, his last leadership post, as he praised his brother Raul's management of the country.

"I got sick and did what I had to do - delegate my powers. I cannot do something that I am not capable of dedicating full time to," Castro told a group of students on Wednesday, state-run press said Thursday.

Castro said he was not speaking to them as first secretary of the ruling communist party but rather as a "soldier of ideas."

"I did not hesitate even a second to put aside my responsibilities," said the 84-year-old, who has kept busy writing and participating in academic meetings in recent years.

After ruling Cuba for nearly half a century, Castro provisionally ceded power to his younger brother, Raul Castro, in July 2006 following intestinal surgery, and officially resigned the presidency in February 2008.

For now, Castro officially remains head of Cuba's only legal political party, which will meet in April to discuss future economic policies for the Caribbean nation. He has held the post since 1965 after seizing power during the 1959 communist revolution.

Castro also praised his 79-year-old brother and successor, saying he was "pleased, because the country is working, despite of all the challenges." He also pointed to communist China, which has steadily grown in recent years, as a model for development.

Raul Castro has said Cuba's economic model, which has survived two decades since the Soviet Union dissolved, must be "updated" without copying patterns from other countries.

His proposed raft of economic reforms is up for debate at the Cuban Communist Party Congress, the first since 1997.

The reforms, which including cutting more than a million government jobs, represent a major management shakeup for the communist island.

They provide for an influx of foreign capital, an opening for private enterprise and reduced government role in the market - all steps away from the Soviet-style communist system currently in force that gave an overarching role to the state.

The proposals make efficiency a vital part of economic management, aim to do away with state subsidies, including food rations, and foresee starting a tax system.

Following up on his pledge on subsidies, president Castro is eliminating subsidies on materials to build and repair homes, with all such products due to be sold at higher prices free of government intervention from January.

Since Februrary, a few materials have been sold free of subsidies in over 300 stores, but subsidized sale prices remained in effect for most building products, trade ministry official Pilar Fernandez told Juventud Rebelde newspaper.

From: AsiaOne

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