Cuba Searches for its “Lost” Money
Cuba Searches for its “Lost” Money
April 11, 2017
By Eileen Sosin Martinez* (Progreso Semanal)
HAVANA TIMES — In my neighborhood, the story about Juan the butcher, who
took a detour with a truck full of minced meat, sold it and then left
the country, is famous. “It’s a good thing he left,” a neighbor warns,
“because if he was still here, people would have got their hands on him…
and they would have killed him.” But, Juan’s story belongs to a greater
Days later, several markets in the city closed, among them the
Almendares Shopping Center (on 41 and 42 Streets) and the one on 51 and
26 Streets. Salespeople responded “Inventory check” or “Public Health
inspection” in a bad mood, and it’s hard to believe them. For example,
at the Carlos III shopping mall, the rumor mill has it that the
inspection found adulterated and repackaged products, expired food items
on sale, price distortion… the real reason why these places have been
closed. The shit hit the fan, people usually say.
In late January, some results from the latest National Check of Internal
Controls were published, namely, losses of over 51 million CUC and over
90 million CUP (Adding up to over 55 million USD), just at
government-run busniesses in Havana alone.
The numbers come with exclamation marks: 51 million CUC and 90 million
CUP, lost or undeclared, in a country which came face to face with a
recession (-0.9% of GDP) last year, something which hasn’t happened in
It’s barely reassuring that the capital’s Head Comptroller, Miriam
Marban, explained that not everything is a result of crime, and adds
other reasons for the missing revenue, such as “production and sale
targets not being met” and “accounts for charging and paying.”
Regardless, the statistics are scandalous.
The anti-corruption fight in Cuba took center stage with the opening of
Cuba’s Comptroller General Office several years ago, one of the first
steps in updating the economic model. According to lawyer Michel
Fernandez Perez, its creation is the most important structural change in
the Cuban political system after the 1992 reforms.
“This institution will play an essential role in upholding order,
economic discipline, internal controls and tackling any cases of
corruption head-on, as well as the causes and conditions that might
encourage any leader or public servant’s negligible and criminal
behavior,” President Raul Castro stressed at the Cuban Parliament in
August 2009, when Cuba’s Comptroller General’s Office was approved.
This institution responds directly to the National Assembly of the
People’s Power and the State Council, and its purpose is to help them in
carrying out “the highest supervision of State and Government bodies.”
Taking this concept into account, Fernandez notes that the authority of
the Cuban Comptroller General’s Office is above the government and every
executive-administrative apparatus; it is only subordinate to the most
important institutions of power.
In spite of this hierarchy, the Comptroller Office doesn’t form part of
the country’s constitutional framework. “Maybe from a legal-formal
viewpoint, it would have been better to have reformed the Constitution
(so as to introduce it),” the lawyer highlighted. This plus the
existence of the self-employed, non-agricultural cooperatives, dual
citizenship and other economic and political realities, remind us that
the Constitution does indeed need to be changed.
Cuba’s armed forces may be audited, complying with a special disposition
in the law governing the Comptroller’s Office, if the country’s
president requests it and when he deems it to be timely.
Meanwhile, they are governed by their own internal control regulations,
and need to inform the Comptroller General about their activities at
least once a year.
[Editors Note: Much of Cuba’s tourism industry is run by the Armed
Forces or contracted out to foreign companies. The same goes for
Something similar happens in the case of the Communist Party
organizations and its related social and mass organizations; as well as
the National Assembly, State Council and Council of Ministers; the
Supreme Court and the Attorney General’s Office. Their economic and
administrative dependencies are auditable, provided that the highest
authorities from these same institutions, or the State Council, request it.
When an audit ends, a document is drawn up which is then made public to
employees. That is to say, they only receive information about what has
happened. The Comptroller’s Office complies with the functions that it
has been assigned, according to the law. However, dialogue and worker
participation don’t really work in practice.
Cuba is a signatory of the United Nations Convention against Corruption,
a document it signed in 2005 (two years after it was created) and
ratified in 2007. Cuban Audit Regulations are in sync with International
Standards of Supreme Audit Institutions (ISSAI).
However, the critical factor which distinguishes the National
Comptroller’s Office from its equivalents across the world is its lack
of public information. While in other countries it’s normal for these
institutions to put up the findings of their investigations on their
website, here ordinary citizens don’t find out anything, only skeleton
reports in the media, which lack statistics and are all too general.
This results in the inspection process being incomplete. By law, the
Comptroller is obliged to inform those who were subject of the
inspection, labor unions and high-ranking figures of its results and
recommendations. That’s been made explicitly clear. So who is
responsible for informing the general public?
We’re talking about monitoring the State’s resources – read here, our
resources. As such, the logical thing is that we know, in excruciating
detail, the inspections findings and what measures were taken. Without
detailed and timely information there isn’t any popular control or real
Real public participation
One of the alleged causes of irregular accounts lies in the impoverished
economic situation Cuba is experiencing. “When workers are paid a
dignified salary which they can live off, I’m sure many of these cases
of corruption will disappear,” claimed somebody in the comments of
Nevertheless, “although you can understand that we have problems which
affect Cuban people’s everyday lives, as a matter of principle, we
cannot accept that this leads to people committing illegal activities,”
stressed Vice-President Miguel Diaz-Canel, during the closing ceremony
of the first International Audit and Control Workshop (2014) in Havana.
On the other hand, there are also those who have just wanted to get
rich. The Comptroller General, Gladys Bejerano, has stated that the key
motive continues to be “deviating resources” to sell them illegally for
In both cases, the moral crack of those who say they are “fighting”
(luchando), “inventing” “resolving” as if that was positive… when they
should be saying that they are stealing, is commonplace.
Not by chance, the last two Internal Control inspections focused on the
extremely important sectors and processes for current change:
decentralizing State business operation, measures to “tackle” the aging
population, granting subsidies to the population, non-agricultural
cooperatives and the application of performance based salaries at State
businesses. Going beyond companies, the Comptroller Office is
responsible for verifying the ethical conduct of State managers and leaders.
We don’t know much else about the millions lost at the beginning of this
article: “severe measures” were applied to nine managers; and 114
officials and employees were sanctioned with “lesser disciplinary
measures”, because of their collateral responsibility. That’s it.
The fact that the law has a chapter called “About popular participation”
gives us some hope. “It’s society who has to control the public budget,
because we are the ones controlling what we spend,” commented the
director of Budget Implementation at the Ministry of Finance and Prices,
He’s right; I completely agree. However, for that to happen we need
information, transparency and the real capacity to involve ourselves and
participate. There can’t be socialism (much less a prosperous and
sustainable socialism) if workers don’t participate.
Source: Cuba Searches for its “Lost” Money – Havana Times.org –