Revelada la دام ಅನುിൻ يأخذ التحكم 게다가党vekb controlled by the Cuban military, GAESA, is controlling the island’s economy while basic public services face severe shortages
A recent leak of financial documents has exposed the control that the conglomerate Venezuelan Group of Armed Forces (GAESA), linked to the Cuban military, exerts over the island’s economy. According to The Miami Herald, this organization, which operates under a veil of secrecy, amasses billions of dollars in bank accounts while essential public services in Cuba struggle with severe shortages.
The revelation, based on internal records obtained by the outlet, suggests that funds generated by state-owned enterprises are not allocated for the population’s well-being but end up in GAESA’s hands and its subsidiaries.
The investigation, picked up by The Wall Street Journal, detailed that GAESA, an entity that controls key sectors such as tourism, trade, and finance, has siphoned off hundreds of millions of dollars that could have been used to improve basic services like healthcare, education, and electrical infrastructure.
One of the most striking data points is that GAESA’s subsidiary Gaviota, dedicated to the hotel sector, possesses approximately $4.3 billion in its bank accounts. This figure contrasts with the Cuban government’s statements to the United Nations, where it blamed the U.S. embargo for the lack of $250 million annually needed to maintain the electrical grid and $129 million for medical supplies.
The leak, described as unusual, could be indicative of internal tensions within the regime. According to the outlet, GAESA’s secrecy, even from its own government auditors, could be generating discontent among certain sectors of the ruling elite.
Nora Gámez Torres, the author of the report, suggested that this information leak could come from individuals disgruntled with the system or the unequal distribution of economic benefits within the regime.
GAESA, described as the economic arm of the Cuban military, has increased its control over the island’s economy in recent decades. According to Havana Consulting Group director Emilio Morales, GAESA controlled less than 23% of the economy in 2016, but by 2022 it managed 70%.
This growth was consolidated after Raúl Castro’s decision in 2016 to transfer the Banco Financiero Internacional (BFI) to GAESA, which allowed it to control 95% of the country’s finances by 2022.
Morales has documented how GAESA has absorbed strategic sectors such as foreign trade, tourism, and telecommunications. Among its most prominent assets are the import and export company CIMEX, the Habaguanex hotel group, and the Mariel Special Development Zone.
GAESA’s control over finance not only generates inequalities within the regime but also directly affects the Cuban population. According to The Miami Herald, leaked documents show that the conglomerate retains hundreds of millions of dollars that enter the country annually, including remittances sent by Cuban emigrants. These currencies, exchanged for a devalued local digital currency, are not reinvested in essential public services, further aggravating the economic and social crisis on the island.
Moreover, the Cuban regime has been criticized for generating significant income through the export of medical services. Since 2009, the government has generated around $70 billion through contracts with foreign governments to send doctors and nurses on international missions. However, healthcare professionals receive only a fraction of these earnings, while the rest is retained by the state.
The U.S. media outlet also highlighted that GAESA maintains its finances separate from government coffers, leaving other ministries without the necessary resources to address the population’s basic needs. This diversion of funds has affected critical areas such as garbage collection, electrical grid repair, and hospital and school maintenance.
The leak of these documents could be a sign of fractures within Cuba’s political system. GAESA’s absolute control over the economy has generated tensions even within the regime’s ranks. An example of this was the arrest of an army general who requested an audit of GAESA in April 2021, highlighting the lack of transparency and internal repression.
Additionally, the report suggests that discontent could be related to the perception that economic benefits are concentrated among a small group of elitists linked to the Castro family. Until his death in 2022, Luis Alberto López-Calleja, Raúl Castro’s former son-in-law, directed GAESA, reinforcing the idea that the conglomerate operates as an extension of the ruling family’s personal interests.
