Leaked records expose financial mismanagement and priorities that worsen Cuba's suffering
In a stark contradiction to its public narrative of financial hardship, the Cuban government has been exposed for hoarding vast financial reserves. Leaked documents reveal that military-controlled enterprises, particularly the Grupo de Administración Empresarial S.A. (GAESA), have accumulated billions while Cuba faces one of its worst humanitarian crises.
The reports detail how Gaviota, a GAESA subsidiary managing tourist hotels, holds $4.3 billion in readily available assets. This figure alone is nearly thirteen times the government’s estimated $339 million annual requirement to supply Cuban pharmacies with essential medications. With 70% of critical medicines unavailable, the country's healthcare system is on the brink of collapse.
Adding to the crisis, GAESA, which controls key sectors such as tourism, retail, and telecommunications, diverts significant foreign currency revenues to expand its portfolio of luxury hotels. Meanwhile, the country grapples with electricity blackouts, food insecurity, and severe gas shortages, exacerbating an already dire humanitarian situation.
Mismanagement, misplaced priorities, and the role of sanctions
Cuba's economic decline has been attributed to various factors, including U.S. sanctions, outdated policies, and reduced aid from political allies. However, the leaked records shed light on a more insidious cause: systemic financial mismanagement by the military.
In 2024 alone, GAESA's financial records indicated assets worth billions, with Almest, another military-owned enterprise, receiving significant state funding for hotel construction projects. While the government allocated substantial funds to tourism, investments in healthcare, agriculture, and education lagged behind at a meager fraction of the budget.
Despite plummeting tourism revenues—down 62% from 2019 levels—the construction of luxury accommodations continued unabated. With occupancy rates falling to below 30% in some government-run hotels, questions arise about the rationale behind prioritizing such projects over addressing urgent humanitarian needs.
Experts argue that GAESA's unchecked power undermines the Cuban government’s ability to operate as a centrally planned economy. By hoarding foreign currency reserves and funneling resources into non-essential industries, the military conglomerate has created a parallel economy that benefits a select few while leaving millions in hardship.
The human cost of economic disparities
The consequences of these financial practices are starkly visible across the island. From residents scavenging for food scraps to grieving families unable to afford basic funeral arrangements, the nation’s suffering is profound. Electricity blackouts and healthcare shortages have left many questioning the government’s commitment to its people.
Even as the government blames U.S. sanctions for its struggles, the leaked documents reveal that the military has ample funds to address the island’s most pressing needs. For instance, GAESA’s billions could easily cover the annual costs of restoring the electrical grid and supplying hospitals with essential medical equipment. Instead, these funds remain tied up in ventures that do little to alleviate the country’s immediate crisis.
The leaked documents also reveal that GAESA's overwhelming financial influence extends far beyond hotel construction. The conglomerate controls significant portions of the country’s foreign currency inflow through Banco Financiero Internacional, where remittances and payments for Cuban medical missions abroad are managed. Despite the dire state of public services, this strategic financial control enables GAESA to maintain its operations independently, further fueling public dissatisfaction and economic disparity in the country.
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