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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Cell phones and the cost of living in Cuba

Courtesy of Omar Santana.

When I first came to Cuba in 1995, cell phone service was so scarce that, after a meeting in which an official had flashed a cell phone from the podium, I turned to Abel Prieto, then the president of the writer’s union, and asked if he had one too.

“Oh, no,” he said, “I’m not high enough to be part of the celucracia.”

The cellucracy!

In later years, of course, Abel became the minister of culture and acquired a pocketful of cells, and I began to know people – rarely connected with government – who had one too. But the stories behind their cells were always complicated and strange.

The reason was that Cuba did not allow its citizens to legally own cell phones until 2008. That’s right, 2008 – 45 years after its invention, Cubans finally got a chance to own a cell.

Prior to that, to have a cell phone meant you were either very high in or very important to the government, or you had an European or Canadian connection – a foreigner willing to get a phone and cell service in her name and let you use it. It was an exclusive club, and pulling a cell out in public elicited envy, awe, and not a little bit of fear.

After 2008, though, cell phones have become ubiquitous. The lowliest delivery boy has one attached to his belt. That is not, of course, in and of itself surprising. Like in so much of the Third World, cell service in Cuba doesn’t require the wait for a land line, which can be months or even years. If you have the right kind of apparatus, you can sign up for service on the same day.

But what is curious is the chasm between the cost of cellular service and the official Cuban monthly salary.

You see, after you pay the $30 CUCs – Cuba’s convertible peso, which is at about 0.87 per U.S. dollar – to establish a cell line, you need to buy phone cards to charge the phones at approximately 45 centavos a minute, or about 50 US cents.

This means that cell phone usage in Cuba isn’t casual. It’s about location, or getting someone to drop a key from a higher floor to open a lobby door, or to ask someone to get to a landline for a real conversation. Cell phones, of course, also facilitate texts, which has been a boon for dissidents and their responders, both groups which have taken to Twitter like an addiction.

But how, you might ask, can a Cuban earning between $15 and $20 USD a month pay such a steeply priced cell service? The answer is that, at least officially, they can’t.

And this is where the Cuban government, regardless of its staunch public posture against corruption (especially under Raul Castro), colludes with and counts on the country’s rich black market. Because, really, otherwise how can a Cuban earning $15-$20 USD a month have cell service that ends up being twice that?

Cell service is one of the many things that, prior to Raul, had been illegal but not uncommon for Cubans. In fact, many of his so-called reforms have been merely bringing into legality what had become common illegal practice: among other things, access for Cuban citizens to hotels, access to car rentals, access to DVD rental of foreign films, access to markets for individual farmers and artisans, and the ability to run a legal business, especially in sales or personal services.

In the case of the cell service, the government assumes its citizens are getting their funds from abroad or through illegal means. As a friend of mine explained, it’s Cuba’s version of Don’t Ask Don’t Tell: The government agrees not to question source of income so long as the citizen agrees to pay the exorbitant fee.

Added my friend: “It’s not exactly like we have a choice anyway.”

by Achy Obejas

 

Source: WBEZ

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Construction, telecommunications ministers replaced in Cuban Cabinet reshuffle

Ramiro Valdes (left) will have more time to control everything.

Cuba announced a reshuffle of its Cabinet on Thursday, relieving the minister in charge of construction for undisclosed "errors" and stripping a powerful vice president of a secondary role he held as head of the Telecommunications Ministry.

Fidel Figueroa was being replaced as head of the Construction Ministry for "errors committed in his job," according to an official government statement read out on the state-controlled television news. His replacement was Rene Mesa Villafana, who since 2007 was head of the institution that controls Cuba's water supply.

The statement also said Ramiro Valdes, 78, would step down as head of the Telecommunications Ministry.

Far from a demotion, the statement said the move was being made to give Valdes more time to oversee the leadership of both his old ministry and the Construction Ministry.

Valdes is a former leader of the rebels who brought Fidel Castro to power in 1959 and an ex-interior minister, and is also considered to be extremely close to Fidel's brother, Raul, who is now the president.

Valdes has also had a key role in building relations between Cuba and its most important ally, Venezuela. In addition to being a Cabinet vice president he has been a vice president of the communist country's supreme governing body, the Council of State, since December 2009.

The moves were the latest in a series of Cabinet changes carried out in recent months as cash-strapped Cuba tries to revamp its economy, firing half a million state workers and opening up new opportunities for self-employment.

In September, the island's government announced the removal of the minister of oil and mining in a sternly worded statement that cited her "deficiencies" and "weak manner."

The island's health minister was replaced in July, a month after the transportation minister was fired for professional mistakes and the head of the Sugar Ministry was ousted after admitting incompetence.


By PAUL HAVEN (AP)

From: The Kansas City Star

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