Thoughts About the Agricultural Problem in Cuba / Dayana Cruz Vega,
Cuban Law Association
Posted on May 29, 2013
Agricultural Problem: These have been two very controversial words down
the years, they refer to the unequal distribution of land between the
rural population, also the combination of socioeconomic and political
conditions, relations and contradictions which characterise the
structure and working of the agricultural sector. This problem has been
a persistent presence in Cuban political legal thinking even though it
was one of the first labour directives after the triumph of the revolution.
The Agriculture Reform Laws acquired a constitutional status which they
maintained up until the 1976 Constitution took effect.
On the subject of agriculture there exist bodies of law such as
Resolution 288/90 which establishes the regulations for the functioning
of the register of land tenure, Law number 36 relating to farming
co-operatives, repealed by Law 95/2002, among others which have seen the
light of day in recent years, like Decree Law 259 which guarantees the
awarding of the right to enjoy land for the purpose of production and
number 300 which modifies the extension of lands which the previous one
permitted to be handed over.
But in spite of all of this pointing in the direction of the improvement
of the living and working conditions of the farming sector, and the
increased productivity of the land as the only way to replace imports,
they haven't met their objective.
In this regard it is necessary to stress that the scattered legislation,
the legal ignorance of the peasants in relation to their rights and the
process of accounting in the various sectors and co-operatives have had
their influence of production and productivity, in spite of there being
sufficient projects put in place for this function; and, just as
important as the above-mentioned, are the occurrence of instances of
violation of the generally accepted Principles of Accounting, breach of
the System of Internal Control, all of which have encouraged the
commission of economic crimes with increasing frequency.
All of this brings us to the point at which we can conclude that the
land problem is in need of objective solutions which have the necessary
legal backing to turn agriculture into our principal source of income,
and not what has in fact happened which is to be converted into an
unproductive sector incapable of satisfying our immediate nutritional
and economic needs.
Translated by GH
22 May 2013
http://translatingcuba.com/thoughts-about-the-agricultural-problem-in-cuba-dayana-cruz-vega-cuban-law-association/
Wednesday, May 29, 2013
The University of Havana Falls 27 Places in the Latin American Ranking
The University of Havana Falls 27 Places in the Latin American Ranking /
Diario de Cuba
Posted on May 28, 2013
The University of Havana fell 27 places in the Latin American ranking,
going from 54 to 81, a fall with several explanations.
With a score of 49.10 (out of 100), the main Cuban school lost ground in
almost all aspects evaluated, but its decline is due mainly to the
advancement of other universities in the region.
Its best indicator is its academic reputation (83.5 points) and its
worst, the amount of research by faculty (22.5 points).
The second-ranked Cuban institution is the University of the Oriente,
which slightly improved in ranking to145 in Latin America, with a score
of 34.70. In 2012 it was ranked 149.
The next-ranked are José Antonio Echeverría City University and the
University of Cienfuegos, both between the positions 201-250, and the
Central University of Las Villas 251-300. (After 150th place, the
universities were ranked in groups of 50.)
No medical school on the island made the list.
According to the QS University Rankings, produced annually in London,
the University of São Paulo in Brazil tops the chart for the third
consecutive year. Brazil dominates with 81 institutions in the top 300.
Of the ranked universities, 44% were founded in the last 50 years.
According to the report of QS World Universities Rankings, assessments
are based on surveys of academic reputation and work, along with
research productivity and citations, student-faculty ratio, academics
with doctorates and web presence.
Translated from Diario de Cuba
28 May 2013
http://translatingcuba.com/the-university-of-havana-falls-27-places-in-the-latin-american-ranking-diario-de-cuba/
Diario de Cuba
Posted on May 28, 2013
The University of Havana fell 27 places in the Latin American ranking,
going from 54 to 81, a fall with several explanations.
With a score of 49.10 (out of 100), the main Cuban school lost ground in
almost all aspects evaluated, but its decline is due mainly to the
advancement of other universities in the region.
Its best indicator is its academic reputation (83.5 points) and its
worst, the amount of research by faculty (22.5 points).
The second-ranked Cuban institution is the University of the Oriente,
which slightly improved in ranking to145 in Latin America, with a score
of 34.70. In 2012 it was ranked 149.
The next-ranked are José Antonio Echeverría City University and the
University of Cienfuegos, both between the positions 201-250, and the
Central University of Las Villas 251-300. (After 150th place, the
universities were ranked in groups of 50.)
No medical school on the island made the list.
According to the QS University Rankings, produced annually in London,
the University of São Paulo in Brazil tops the chart for the third
consecutive year. Brazil dominates with 81 institutions in the top 300.
Of the ranked universities, 44% were founded in the last 50 years.
According to the report of QS World Universities Rankings, assessments
are based on surveys of academic reputation and work, along with
research productivity and citations, student-faculty ratio, academics
with doctorates and web presence.
Translated from Diario de Cuba
28 May 2013
http://translatingcuba.com/the-university-of-havana-falls-27-places-in-the-latin-american-ranking-diario-de-cuba/
Venezuela imports 408 tons of drugs from Cuba in two weeks
TRADE
Venezuela imports 408 tons of drugs from Cuba in two weeks
Two shipments of drug products from Farmacuba entered Venezuela through
Puerto Cabello, northwest Venezuela
Products from Farmacuba are not traded in private drug stores nor are
they sold in state-owned drugstore network Farmapatria (File photo /
Venancio Alcázares)
EL UNIVERSAL
Tuesday May 28, 2013 02:02 PM
The Venezuelan government continues importing drugs from Cuba. Some 408
tons of products from Farmacuba arrived in Puerto Cabello, northwest
Venezuela, in 14 days.
The latest shipment hit Venezuela on May 12 with 84 tons, according to a
report published by Informes, a magazine issued by Puerto Cabello
Chamber of Commerce and whose content is based on information from state
company Bolivariana de Puertos (Bolipuertos).
In another shipment, on April 29, 324 tons of products from Farmacuba
entered Venezuela.
Although the pharmaceutical products imported by the Venezuelan
Government from Cuba are not traded in traditional drug stores, Cuba has
become one of Venezuela's main drugs suppliers.
Data from the National Statistics Institute confirms this information.
In 2012, imports from Cuba amounted to USD 324 million, 10.6% up with
respect to 2011.
Last week, the president of state-run pharmaceutical network
Farmapatria, Freddy Arenas, said Farmacuba's products are not sold in
any of Farmapatria's 78 stores.
rdeniz@eluniversal.com
http://www.eluniversal.com/economia/130528/venezuela-imports-408-tons-of-drugs-from-cuba-in-two-weeks
Venezuela imports 408 tons of drugs from Cuba in two weeks
Two shipments of drug products from Farmacuba entered Venezuela through
Puerto Cabello, northwest Venezuela
Products from Farmacuba are not traded in private drug stores nor are
they sold in state-owned drugstore network Farmapatria (File photo /
Venancio Alcázares)
EL UNIVERSAL
Tuesday May 28, 2013 02:02 PM
The Venezuelan government continues importing drugs from Cuba. Some 408
tons of products from Farmacuba arrived in Puerto Cabello, northwest
Venezuela, in 14 days.
The latest shipment hit Venezuela on May 12 with 84 tons, according to a
report published by Informes, a magazine issued by Puerto Cabello
Chamber of Commerce and whose content is based on information from state
company Bolivariana de Puertos (Bolipuertos).
In another shipment, on April 29, 324 tons of products from Farmacuba
entered Venezuela.
Although the pharmaceutical products imported by the Venezuelan
Government from Cuba are not traded in traditional drug stores, Cuba has
become one of Venezuela's main drugs suppliers.
Data from the National Statistics Institute confirms this information.
In 2012, imports from Cuba amounted to USD 324 million, 10.6% up with
respect to 2011.
Last week, the president of state-run pharmaceutical network
Farmapatria, Freddy Arenas, said Farmacuba's products are not sold in
any of Farmapatria's 78 stores.
rdeniz@eluniversal.com
http://www.eluniversal.com/economia/130528/venezuela-imports-408-tons-of-drugs-from-cuba-in-two-weeks
Pitching in My Two Cents for Cuba's CDR Congress
Pitching in My Two Cents for Cuba's CDR Congress
May 28, 2013
Osmel Almaguer
HAVANA TIMES — A new congress of Cuba's Committees for the Defense of
the Revolution (CDRs) is nearing and winds of change seem to be coming
with it. Such change would be a positive sign, an indication that Cuban
authorities are beginning to acknowledge that something in this
organization isn't working too well.
I suspect, however, that this is something of a bluff. The way I see it,
we need to do more than recognize "our mistakes" in order to overcome
the crisis currently faced by the CDRs – we need to re-think the very
foundations of the Committees.
Why do I say this? Because there are basic problems in the way this
organization works, and these problems have turned it into something
unwieldy and obsolete. The vast majority of people no longer feel they
belong in the organization and no longer see it as a tool they can use
to solve problems in their communities.
Perhaps this is because the Committees have become eminently political
in nature, mechanisms used to control and exert pressure on any
individuals over fourteen, and this fact has become increasingly harder
to conceal.
Though no law I know of makes membership mandatory, belonging to a
committee is practically a must, and the pressures that are brought to
bear on anyone who wishes to remain outside of these are quite intense.
The CDRs have a say in housing-related matters, applications for new
jobs, and legal and criminal proceedings. The chair of the CDR you
belong to is the person who has the last word on these and other
matters. These individuals all too often abuse the authority afforded
them by their position to settle personal scores.
Once inside, there are a number of assigned tasks you need to fulfill in
order to earn a favorable opinion from other members. To prove you're a
worthy CDR member, tantamount to proving you're a "good person" in the
community, you must participate in at least one neighborhood watch every
month, recycle garbage, donate blood, attend all Committee parties and
meetings and, most importantly, report any "crimes" you witness within
the community.
In today's Cuba, however, ethical and legal limits have become two
rather distinct categories. Such practices as "getting by", or, in plain
language, stealing from the State, aren't always necessarily understood
as "crimes". People thus generally opt to protect one another, because
everyone relies on these "crimes" to make ends meet.
This is the reason the interests of the CDR often go in the opposite
direction than those of its members, who fulfill the tasks assigned to
them just to do what's expected of them, not because they feel that the
Committee is an effective tool for solving the community's problems.
I am not suggesting that donating blood and preventing theft or breaking
and entering in the community is wrong, not at all. It's the
centralized, inflexible and mandatory method with which this is carried
out I am criticizing.
It is worth pointing out that, owing to the recent changes (in legal
self-employment) that Cuba has seen in this area, the task of collecting
recyclable garbage around the community has become rather superfluous.
One of the more serious problems that the CDR has as an institution is
the fact that local Committees, and, consequently, CDR members, have
very little say in decision-making processes.
Its hierarchical structure, with those at the top handing down
instructions and those at the bottom blindly obeying or rejecting these
instructions, makes for a highly mechanical way of doing things and only
deepens the already exasperating automation of human beings.
Many problems that concern the community, and can be solved at meetings,
never make it to the table because of this mechanical way of doing things.
State businesses, offices and utilities, which respond to the interests
of the government, then act in ways that recall the behavior of the
transnational corporations we criticize so much. This means, for
instance, that the demands of an area like the one I live in, in dire
need of government aid, filled with factories that produce nothing but
pollution, fall on deaf ears.
I pointed all of these things out, and more, at the last meeting held by
my CDR, not for the sake of disparaging the institution (of which I am
an organizer), but from the position of a Cuban citizen who believes
that the best way to solve a problem is to "roll up one's sleeves" and
knuckle down to hard work.
In short, I call for CDRs to serve the people, not the government, to
act more as a tool used to benefit the community than as instruments
used to cast away the enemies of the revolution. For, if the Cuban
revolution is so strong and enjoys the support of the vast majority of
the people, why should we be so afraid of a disenchanted minority?
If any of these issues were addressed at the 8th CDR Congress, I would
be more than satisfied.
http://www.havanatimes.org/?p=93703
May 28, 2013
Osmel Almaguer
HAVANA TIMES — A new congress of Cuba's Committees for the Defense of
the Revolution (CDRs) is nearing and winds of change seem to be coming
with it. Such change would be a positive sign, an indication that Cuban
authorities are beginning to acknowledge that something in this
organization isn't working too well.
I suspect, however, that this is something of a bluff. The way I see it,
we need to do more than recognize "our mistakes" in order to overcome
the crisis currently faced by the CDRs – we need to re-think the very
foundations of the Committees.
Why do I say this? Because there are basic problems in the way this
organization works, and these problems have turned it into something
unwieldy and obsolete. The vast majority of people no longer feel they
belong in the organization and no longer see it as a tool they can use
to solve problems in their communities.
Perhaps this is because the Committees have become eminently political
in nature, mechanisms used to control and exert pressure on any
individuals over fourteen, and this fact has become increasingly harder
to conceal.
Though no law I know of makes membership mandatory, belonging to a
committee is practically a must, and the pressures that are brought to
bear on anyone who wishes to remain outside of these are quite intense.
The CDRs have a say in housing-related matters, applications for new
jobs, and legal and criminal proceedings. The chair of the CDR you
belong to is the person who has the last word on these and other
matters. These individuals all too often abuse the authority afforded
them by their position to settle personal scores.
Once inside, there are a number of assigned tasks you need to fulfill in
order to earn a favorable opinion from other members. To prove you're a
worthy CDR member, tantamount to proving you're a "good person" in the
community, you must participate in at least one neighborhood watch every
month, recycle garbage, donate blood, attend all Committee parties and
meetings and, most importantly, report any "crimes" you witness within
the community.
In today's Cuba, however, ethical and legal limits have become two
rather distinct categories. Such practices as "getting by", or, in plain
language, stealing from the State, aren't always necessarily understood
as "crimes". People thus generally opt to protect one another, because
everyone relies on these "crimes" to make ends meet.
This is the reason the interests of the CDR often go in the opposite
direction than those of its members, who fulfill the tasks assigned to
them just to do what's expected of them, not because they feel that the
Committee is an effective tool for solving the community's problems.
I am not suggesting that donating blood and preventing theft or breaking
and entering in the community is wrong, not at all. It's the
centralized, inflexible and mandatory method with which this is carried
out I am criticizing.
It is worth pointing out that, owing to the recent changes (in legal
self-employment) that Cuba has seen in this area, the task of collecting
recyclable garbage around the community has become rather superfluous.
One of the more serious problems that the CDR has as an institution is
the fact that local Committees, and, consequently, CDR members, have
very little say in decision-making processes.
Its hierarchical structure, with those at the top handing down
instructions and those at the bottom blindly obeying or rejecting these
instructions, makes for a highly mechanical way of doing things and only
deepens the already exasperating automation of human beings.
Many problems that concern the community, and can be solved at meetings,
never make it to the table because of this mechanical way of doing things.
State businesses, offices and utilities, which respond to the interests
of the government, then act in ways that recall the behavior of the
transnational corporations we criticize so much. This means, for
instance, that the demands of an area like the one I live in, in dire
need of government aid, filled with factories that produce nothing but
pollution, fall on deaf ears.
I pointed all of these things out, and more, at the last meeting held by
my CDR, not for the sake of disparaging the institution (of which I am
an organizer), but from the position of a Cuban citizen who believes
that the best way to solve a problem is to "roll up one's sleeves" and
knuckle down to hard work.
In short, I call for CDRs to serve the people, not the government, to
act more as a tool used to benefit the community than as instruments
used to cast away the enemies of the revolution. For, if the Cuban
revolution is so strong and enjoys the support of the vast majority of
the people, why should we be so afraid of a disenchanted minority?
If any of these issues were addressed at the 8th CDR Congress, I would
be more than satisfied.
http://www.havanatimes.org/?p=93703
Cuba 'to offer' limited public internet access
28 May 2013 Last updated at 20:15 GMT
Cuba 'to offer' limited public internet access
The government of Cuba has said it will soon expand public access to the
internet, although it will maintain restrictions for access at home.
It said that 118 internet points would be set up on the Caribbean island
from 4 June, to allow web surfing for $4.5 (£3) an hour.
Cuba's average salary is $20 a month, and it has one of the lowest
levels of internet access in the world.
Most Cubans can connect only at work, at school, or in luxury hotels.
Traffic will be monitored
The easing of restrictions was published in the official paper, Gaceta
Oficial.
It said that member of the public will be able to access international
websites for $4.5 (£3) an hour - down from $6 - or $0.6 (£0.4) an hour
for national sites.
The cost for checking emails will remain unchanged at $1.50 (£1).
The government also reaffirmed that it would continue monitoring
internet traffic closely.
Cuba's telecommunications company, Etecsa, will "immediately" stop
access to users if they commit "any violation of the norms of ethical
behaviour promoted by the Cuban state", the Ministry of Communications
said in its government decree.
Only some professionals, like journalists and doctors, are allowed to
surf the internet at home.
Most Cubans, however, can get online only in their places of work or
study, or check their email at post offices.
They can also use internet points in hotels which mostly cater to
international tourists.
Slow connection
Up until recently, Cuba relied upon slow and expensive satellite links
for internet connections.
But in January, Etecsa announced it would start using an under-sea
fibre-optic cable from Venezuela that would provide high-speed internet
connection.
The Communist-led government has blamed limited bandwidth for
restricting web access, saying it is forced to prioritise it for
universities, companies and research centres.
But critics have accused the government of wanting to censor free speech
and control access to information.
On her Twitter account, dissident blogger Yoani Sanchez said that "it
will take time to get internet at home, but I'm sure it will come... and
this will hurt (the government)."
http://www.bbc.co.uk/news/world-latin-america-22696637
Cuba 'to offer' limited public internet access
The government of Cuba has said it will soon expand public access to the
internet, although it will maintain restrictions for access at home.
It said that 118 internet points would be set up on the Caribbean island
from 4 June, to allow web surfing for $4.5 (£3) an hour.
Cuba's average salary is $20 a month, and it has one of the lowest
levels of internet access in the world.
Most Cubans can connect only at work, at school, or in luxury hotels.
Traffic will be monitored
The easing of restrictions was published in the official paper, Gaceta
Oficial.
It said that member of the public will be able to access international
websites for $4.5 (£3) an hour - down from $6 - or $0.6 (£0.4) an hour
for national sites.
The cost for checking emails will remain unchanged at $1.50 (£1).
The government also reaffirmed that it would continue monitoring
internet traffic closely.
Cuba's telecommunications company, Etecsa, will "immediately" stop
access to users if they commit "any violation of the norms of ethical
behaviour promoted by the Cuban state", the Ministry of Communications
said in its government decree.
Only some professionals, like journalists and doctors, are allowed to
surf the internet at home.
Most Cubans, however, can get online only in their places of work or
study, or check their email at post offices.
They can also use internet points in hotels which mostly cater to
international tourists.
Slow connection
Up until recently, Cuba relied upon slow and expensive satellite links
for internet connections.
But in January, Etecsa announced it would start using an under-sea
fibre-optic cable from Venezuela that would provide high-speed internet
connection.
The Communist-led government has blamed limited bandwidth for
restricting web access, saying it is forced to prioritise it for
universities, companies and research centres.
But critics have accused the government of wanting to censor free speech
and control access to information.
On her Twitter account, dissident blogger Yoani Sanchez said that "it
will take time to get internet at home, but I'm sure it will come... and
this will hurt (the government)."
http://www.bbc.co.uk/news/world-latin-america-22696637
Cuba's fibre optic link to Venezuela creates greater internet access
Cuba's fibre optic link to Venezuela creates greater internet access
More people in Cuba will be able to use the internet, although access
will still be under strict government control.
The government is creating an additional 118 outlets, which will make
use of faster bandwidth thanks to undersea fibre optic cables between
the Caribbean island to Venezuela. Cuba cannot use others due to a US
embargo.
Starting from June 4, the extra access will be provided by the state
telecommunications monopoly ETECSA for a reduced price than is currently
charged.
However, there still be no internet provided directly to private homes.
"I think it's brilliant. For students, it's a fantastic tool. For the
rest of the population, it's a way to communicate with the outside
world. For me, the internet is everything," said technology student Jose
Luis.
Cuba has one of the lowest rates of internet usage in Latin America.
There are only 2.6 million users out of a population of 11.1 million.
Despite the increased access, the government has warned it will not
tolerate Internet users who "endanger or prejudice public security, or
the integrity and sovereignty of the nation.""
http://www.euronews.com/2013/05/28/cuba-s-fibre-optic-link-to-venezuela-creates-greater-internet-access/
More people in Cuba will be able to use the internet, although access
will still be under strict government control.
The government is creating an additional 118 outlets, which will make
use of faster bandwidth thanks to undersea fibre optic cables between
the Caribbean island to Venezuela. Cuba cannot use others due to a US
embargo.
Starting from June 4, the extra access will be provided by the state
telecommunications monopoly ETECSA for a reduced price than is currently
charged.
However, there still be no internet provided directly to private homes.
"I think it's brilliant. For students, it's a fantastic tool. For the
rest of the population, it's a way to communicate with the outside
world. For me, the internet is everything," said technology student Jose
Luis.
Cuba has one of the lowest rates of internet usage in Latin America.
There are only 2.6 million users out of a population of 11.1 million.
Despite the increased access, the government has warned it will not
tolerate Internet users who "endanger or prejudice public security, or
the integrity and sovereignty of the nation.""
http://www.euronews.com/2013/05/28/cuba-s-fibre-optic-link-to-venezuela-creates-greater-internet-access/
British fund executives to go on trial in Cuba
Exclusive: British fund executives to go on trial in Cuba
Reuters
By Marc Frank
HAVANA (Reuters) - The two top executives of a British investment fund
in Cuba are scheduled to go on trial in Havana on Thursday, according to
sources close to the accused men, as part of an unprecedented government
crackdown on corruption involving foreign businessmen.
In the second trial of foreign executives on the Communist-run island in
a week, Amado Fakhre, a Lebanese-born British citizen and chief
executive officer of Coral Capital Group Ltd, faces various bribery
charges related mainly to the fund's import business.
Chief Operating Officer Stephen Purvis, who headed up various investment
projects, reportedly faces lesser charges, such as operating outside the
bounds of the fund's license.
Fakhre has been jailed since the company's offices were raided and
closed in October 2011. Purvis was arrested and imprisoned in March 2012.
"We are providing consular assistance to them and their families and a
consular official will attend the trial," a British diplomat said.
The trial has not been announced to the public or media.
Coral Capital was one of only a handful of small foreign investment
funds in Cuba. It was caught up in a dragnet of Cuba's international
trading sector, which was part of a broader crackdown on corruption by
President Raul Castro, who replaced ailing brother Fidel in 2008.
In September 2011 authorities shut down one of the most important
Western trading companies in Cuba, Canada-based Tokmakjian Group, after
doing the same in July to another Canadian trading firm, Tri-Star Caribbean.
The closed trial of Sarkis Yacoubian, originally from Armenia and the
owner of Tri-Star Caribbean, was held last week. An associate of
Yacoubian, Lebanese citizen Krikor Bayassalian, was a co-defendant.
They were charged with bribery, tax evasion and damaging the economy. If
the court affirms their guilt, sentencing is expected within a week or so.
"The arrests are aimed at shaking the tree to get to corrupt Cuban
officials and purchasers," a local expert on state-run companies said,
asking that his name not be used.
Dozens of Cuban officials and businessmen have reportedly been arrested,
tried and sentenced in the anti-corruption sweep.
A number of other foreigners and Cubans who worked for the three foreign
companies remain free but cannot leave the island because they are
considered witnesses in the cases.
Cuban officials and lawyers for the defendants could not be reached for
comment.
Cuba's state-run media has not yet reported the trials, nor mentioned
the arrests and crackdown on foreign trade.
A SYSTEMIC PROBLEM
"If the Cuban government intends that such penalties serve as effective
deterrents to corruption, and not as deterrents to legitimate foreign
investment, it should clarify the precise nature of the alleged
infractions and make the entire legal process more transparent," said
Richard Feinberg, a non-resident senior fellow of the Washington-based
Brookings Institution and author of a number of studies on Cuba's economy.
The arrests were unprecedented for Cuba, where foreign businessmen
suspected of corruption are usually deported, and are viewed as a
measure of President Castro's determination to clean up a vice he views
as a threat to Cuba's socialist system.
But repression alone will do little, many observers believe.
"Real change would mean not only pursuing enforcement actions but also
coming up with meaningful internal controls for Cuban officials with
discretion in procurement and the licensing of business activity," said
Jose Gabilondo, associate professor of law at Florida International
University in Miami.
"These officials are paid little and face enormous temptation to cut
corners for the sake of themselves and their families," he said.
Coral Capital, registered in the British Virgin Islands in 1999, was
best known in Cuba as the joint venture partner in Havana's upscale
Saratoga Hotel and another hotel complex on the resort key of Cayo Coco.
It had plans to build golf courses and related real estate developments
near Havana, for which it had begun raising equity capital.
The fund diversified into trade financing and importing heavy equipment
and other merchandise and this, rather than its real estate ventures,
may have led to its problems, foreign business sources said.
The company represented various international brands in Cuba, among them
Liebherr Earth Moving, Yamaha Motor Corporation and Peugeot Motorcycles,
according to its now defunct Internet site.
The site said Coral Capital had invested some $75 million in Cuba, with
more than $1 billion of projects in the works.
(Reporting by Marc Frank; Editing by Jeff Franks and Bill Trott)
http://news.yahoo.com/exclusive-british-fund-executives-trial-cuba-223937551.html
Reuters
By Marc Frank
HAVANA (Reuters) - The two top executives of a British investment fund
in Cuba are scheduled to go on trial in Havana on Thursday, according to
sources close to the accused men, as part of an unprecedented government
crackdown on corruption involving foreign businessmen.
In the second trial of foreign executives on the Communist-run island in
a week, Amado Fakhre, a Lebanese-born British citizen and chief
executive officer of Coral Capital Group Ltd, faces various bribery
charges related mainly to the fund's import business.
Chief Operating Officer Stephen Purvis, who headed up various investment
projects, reportedly faces lesser charges, such as operating outside the
bounds of the fund's license.
Fakhre has been jailed since the company's offices were raided and
closed in October 2011. Purvis was arrested and imprisoned in March 2012.
"We are providing consular assistance to them and their families and a
consular official will attend the trial," a British diplomat said.
The trial has not been announced to the public or media.
Coral Capital was one of only a handful of small foreign investment
funds in Cuba. It was caught up in a dragnet of Cuba's international
trading sector, which was part of a broader crackdown on corruption by
President Raul Castro, who replaced ailing brother Fidel in 2008.
In September 2011 authorities shut down one of the most important
Western trading companies in Cuba, Canada-based Tokmakjian Group, after
doing the same in July to another Canadian trading firm, Tri-Star Caribbean.
The closed trial of Sarkis Yacoubian, originally from Armenia and the
owner of Tri-Star Caribbean, was held last week. An associate of
Yacoubian, Lebanese citizen Krikor Bayassalian, was a co-defendant.
They were charged with bribery, tax evasion and damaging the economy. If
the court affirms their guilt, sentencing is expected within a week or so.
"The arrests are aimed at shaking the tree to get to corrupt Cuban
officials and purchasers," a local expert on state-run companies said,
asking that his name not be used.
Dozens of Cuban officials and businessmen have reportedly been arrested,
tried and sentenced in the anti-corruption sweep.
A number of other foreigners and Cubans who worked for the three foreign
companies remain free but cannot leave the island because they are
considered witnesses in the cases.
Cuban officials and lawyers for the defendants could not be reached for
comment.
Cuba's state-run media has not yet reported the trials, nor mentioned
the arrests and crackdown on foreign trade.
A SYSTEMIC PROBLEM
"If the Cuban government intends that such penalties serve as effective
deterrents to corruption, and not as deterrents to legitimate foreign
investment, it should clarify the precise nature of the alleged
infractions and make the entire legal process more transparent," said
Richard Feinberg, a non-resident senior fellow of the Washington-based
Brookings Institution and author of a number of studies on Cuba's economy.
The arrests were unprecedented for Cuba, where foreign businessmen
suspected of corruption are usually deported, and are viewed as a
measure of President Castro's determination to clean up a vice he views
as a threat to Cuba's socialist system.
But repression alone will do little, many observers believe.
"Real change would mean not only pursuing enforcement actions but also
coming up with meaningful internal controls for Cuban officials with
discretion in procurement and the licensing of business activity," said
Jose Gabilondo, associate professor of law at Florida International
University in Miami.
"These officials are paid little and face enormous temptation to cut
corners for the sake of themselves and their families," he said.
Coral Capital, registered in the British Virgin Islands in 1999, was
best known in Cuba as the joint venture partner in Havana's upscale
Saratoga Hotel and another hotel complex on the resort key of Cayo Coco.
It had plans to build golf courses and related real estate developments
near Havana, for which it had begun raising equity capital.
The fund diversified into trade financing and importing heavy equipment
and other merchandise and this, rather than its real estate ventures,
may have led to its problems, foreign business sources said.
The company represented various international brands in Cuba, among them
Liebherr Earth Moving, Yamaha Motor Corporation and Peugeot Motorcycles,
according to its now defunct Internet site.
The site said Coral Capital had invested some $75 million in Cuba, with
more than $1 billion of projects in the works.
(Reporting by Marc Frank; Editing by Jeff Franks and Bill Trott)
http://news.yahoo.com/exclusive-british-fund-executives-trial-cuba-223937551.html
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