Cuba: Another Harvest Below Expectations
July 1, 2014
Vicente Morin Aguado
HAVANA TIMES — Today, Cuba produces as much sugar as it did a century
ago, when Mario Garcia Menocal, nicknamed "the foreman of Chaparra" (a
well-known factory he owned in the province of Las Tunas), was president
of the country. This year's harvest officially reported a little over
1.6 million tons of sugar, 12% below the planned amount.
According to Liobel Perez, spokesman for Cuba's sugar production company
Azcuba, only six of the country's provinces fulfilled the production
plan established for the 49 refineries in operation. Historical records
show that, when the revolution triumphed, more than 150 sugar refineries
(easily capable of producing over 6 million tons of this natural
sweetener) were in operation.
The agricultural yield reported – a figure that has particular
significance for Cuba – was of 43 tons of sugarcane per hectare. This
was hailed as a feat of Cuban agricultural workers, when the acceptable
average is over 60 tons anywhere in the world.
That said, officials at Azcuba can look back to even more disastrous
figures, lower than 30 tons of sugar raw material for every hundred
square meters of land (the 2010-2011 harvest average), a yield that is
unsustainable if one wishes to make a minimum profit.
Though a little more was produced in comparison to the previous harvest,
this is the second year in a row in which the country fails to meet the
production plan. In the 2012-2013 period, production came in 11 % below
the plan. The slight improvement this year is no success: it
demonstrates the inability of the industry – once the pride of the Cuban
nation – to recover its efficiency.
There is no shortage of the typical excuses that accompany the
declarations made by the high officials responsible. This time, they
again lay the blame on the hot and humid weather which hinders the
conversion of the sucrose contained in the sugarcane. The previous year,
a hurricane named Sandy was the culprit (the culprit one cannot capture
and make accountable).
A little over a decade ago, Cuba's top leadership made the hasty
decision of turning half of the country's sugar refineries into scrap
metal, in view of the industry's patent inability to accomplish
agricultural yields that were internationally competitive (and of the
low market price of sugar at the time).
The situation changed, beyond the control of those who manage Cuba's
economy through improvised measures. The price of food products,
particularly sugar and one of its essential derivatives, ethanol, is
growing steadily. Cuba's leaders now want to rectify the situation, but
are unable to maintain a productive pace that can bring in the profits
that the country's agroindustry (an industry that once turned Cuba into
the world's top sugar producer) deserves.
Source: "Cuba: Another Harvest Below Expectations - Havana Times.org" -
http://www.havanatimes.org/?p=104592
Wednesday, July 2, 2014
Tuesday, July 1, 2014
Children Screaming
Children Screaming / Armando Anel, Luis Felipe Rojas
Posted on June 30, 2014
By Armando Añel
What happened can be briefly summarised: on July 13th 1994 – 17 years
ago today – at the crack of dawn, 72 people tried to escape from the
island in a tug. When they were some 12 km from the coast of Havana,
three other tugs charged the vessel, spraying high pressure water jets
over its occupants. In succession they targetted the 13 de Marzo – which
was now flooded – until it gave up the ghost, broke up and sank, with a
total of 41 fatal victims, 23 of them children, including a 6 month old
baby.
Up to now, the Castro government has not shown the slightest willingness
to clarify what, from the start, it termed "an accident". In the Granma
daily newspaper, ten days after it sank, an article appeared – signed by
Guillermo Cabrera Alvarez – where it said that, among other things, "a
group of company workers took direct action to defend its interests.
They informed the Coastguard of the crime and took it upon themselves to
prevent them getting away." Earlier, the same newspaper had argued that
"in order to obstruct the theft (referring to taking the 13 de Marzo
towboat), three MITRANS boats tried to intercept it, and while they were
manoeuvring in order to achieve that, the unfortunate accident occurred,
in which the vessel sank."
Since then, the tone of the sporadic explanations given by the
government has remained the same: we were dealing with an irresponsible
act of piracy promoted by the "counter revolution" , in the face of
which people took the law into their own hands. Obviously, goes the
official line, the "people" taking the law into their own hands is
nothing punishable. As long as things turn out in their favour, any
crime is justifiable.
It's clear that the official version gives rise to various questions. If
we were looking at a spontaneous, uncoordinated action, why were various
tugs waiting at the entrance to the bay for the 13 de Marzo tugboat, at
the crack of dawn? And why tugs exactly, a type of boat which lends
itself perfectly to intercepting fugitives ? Why did these lookouts let
the vessel continue on its flight? Why did the interception take place
some seven miles off the coast, exactly where it could not be spotted
from the land by unwelcome witnesses, but while still in Cuban waters?
And how was it possible that, having been informed about the escape from
the start, the coastguard speedboats delayed for an hour and twenty
minutes before turning up at the scene, after the massacre had taken place?
But all these questions become irrelevant when you frame the fundamental
question: why don't they try the case to clarify once and for all if
what happened was an accident or a crime? Because, if it was the first,
the urgent, reasonable and normal course is to put the people involved
in front of a judge, a defence lawyer and a prosecutor, in order to see
justice done. That's what happens when any traffic accident occurs,
especially if there are fatalities: they don't take the driver's
innocence as a given; they investigate first. And, in Cuba, since 1959,
the accused have to prove their innocence.
Meanwhile, the massacre of passengers of the 13 de Marzo tugboat – more
than that of Canimar, Cojimar, Guantánamo base, etc. – has become lodged
in the collective memory of those who are exiled and even of many of
those who are stuck on the island. The image is horrific: a young woman
protects her baby from the Castro regime's high-pressure jets of water,
while she shrieks, almost in a whisper "they are going to kill the
children …they are going to kill the children … ". She surrendered, but
to no purpose. She surrendered , and her executioners mocked her. She
surrendered, but in an island's memory, it is exodus and memory, escape
and perennial return, the Tug does not surrender.
The screaming of the children continues to shake our ears.
Translated by GH
25 June 2014
Source: Children Screaming / Armando Anel, Luis Felipe Rojas |
Translating Cuba -
http://translatingcuba.com/children-screaming-armando-anel-luis-felipe-rojas/
Posted on June 30, 2014
By Armando Añel
What happened can be briefly summarised: on July 13th 1994 – 17 years
ago today – at the crack of dawn, 72 people tried to escape from the
island in a tug. When they were some 12 km from the coast of Havana,
three other tugs charged the vessel, spraying high pressure water jets
over its occupants. In succession they targetted the 13 de Marzo – which
was now flooded – until it gave up the ghost, broke up and sank, with a
total of 41 fatal victims, 23 of them children, including a 6 month old
baby.
Up to now, the Castro government has not shown the slightest willingness
to clarify what, from the start, it termed "an accident". In the Granma
daily newspaper, ten days after it sank, an article appeared – signed by
Guillermo Cabrera Alvarez – where it said that, among other things, "a
group of company workers took direct action to defend its interests.
They informed the Coastguard of the crime and took it upon themselves to
prevent them getting away." Earlier, the same newspaper had argued that
"in order to obstruct the theft (referring to taking the 13 de Marzo
towboat), three MITRANS boats tried to intercept it, and while they were
manoeuvring in order to achieve that, the unfortunate accident occurred,
in which the vessel sank."
Since then, the tone of the sporadic explanations given by the
government has remained the same: we were dealing with an irresponsible
act of piracy promoted by the "counter revolution" , in the face of
which people took the law into their own hands. Obviously, goes the
official line, the "people" taking the law into their own hands is
nothing punishable. As long as things turn out in their favour, any
crime is justifiable.
It's clear that the official version gives rise to various questions. If
we were looking at a spontaneous, uncoordinated action, why were various
tugs waiting at the entrance to the bay for the 13 de Marzo tugboat, at
the crack of dawn? And why tugs exactly, a type of boat which lends
itself perfectly to intercepting fugitives ? Why did these lookouts let
the vessel continue on its flight? Why did the interception take place
some seven miles off the coast, exactly where it could not be spotted
from the land by unwelcome witnesses, but while still in Cuban waters?
And how was it possible that, having been informed about the escape from
the start, the coastguard speedboats delayed for an hour and twenty
minutes before turning up at the scene, after the massacre had taken place?
But all these questions become irrelevant when you frame the fundamental
question: why don't they try the case to clarify once and for all if
what happened was an accident or a crime? Because, if it was the first,
the urgent, reasonable and normal course is to put the people involved
in front of a judge, a defence lawyer and a prosecutor, in order to see
justice done. That's what happens when any traffic accident occurs,
especially if there are fatalities: they don't take the driver's
innocence as a given; they investigate first. And, in Cuba, since 1959,
the accused have to prove their innocence.
Meanwhile, the massacre of passengers of the 13 de Marzo tugboat – more
than that of Canimar, Cojimar, Guantánamo base, etc. – has become lodged
in the collective memory of those who are exiled and even of many of
those who are stuck on the island. The image is horrific: a young woman
protects her baby from the Castro regime's high-pressure jets of water,
while she shrieks, almost in a whisper "they are going to kill the
children …they are going to kill the children … ". She surrendered, but
to no purpose. She surrendered , and her executioners mocked her. She
surrendered, but in an island's memory, it is exodus and memory, escape
and perennial return, the Tug does not surrender.
The screaming of the children continues to shake our ears.
Translated by GH
25 June 2014
Source: Children Screaming / Armando Anel, Luis Felipe Rojas |
Translating Cuba -
http://translatingcuba.com/children-screaming-armando-anel-luis-felipe-rojas/
Cuba prosecutors seek 15 years for Canadian man
Posted on Monday, 06.30.14
Cuba prosecutors seek 15 years for Canadian man
BY PETER ORSI
ASSOCIATED PRESS
HAVANA -- Prosecutors are seeking 15 years in prison for a Canadian
businessman who was arrested in a high-profile crackdown on corruption,
Cuban authorities said Monday.
The trial of Cy Tokmakjian, president of an automotive and
transportation company, the Tokmakjian Group, concluded June 12 and a
ruling is to be announced "in the coming days," according to an
announcement published by Communist Party newspaper Granma and other
official media.
The case is being watched closely by the foreign business community in
Cuba. President Raul Castro's government has said there is no place for
graft in the country, although foreign executives say gifts or cash
payments are often demanded in business dealings conducted with low-paid
government officials.
Tokmakjian is accused of using corrupt practices to obtain benefits in
business negotiations, carrying out unauthorized financial transactions,
illegally expatriating large sums of money, altering records to avoid
tax obligations and payroll irregularities.
Monday's announcement named for the first time two other Canadian
citizens among the accused, identifying them as Marco Vinicio Puche
Rodriguez and Claudio Franco Vetere.
A Canadian Foreign Affairs spokesman said diplomats in Havana are
monitoring the cases closely and providing them with consular services,
but would not comment further. Officials at the Tokmakjian Group's
Canada offices did not immediately return a message seeking comment.
Also named were more than a dozen Cubans — Tokmakjian Group employees,
government officials and executives at state-run businesses in the
tourism and nickel sectors.
Prosecutors are seeking the toughest prison sentence, 20 years, for
Nelson Ricardo Labrada Fernandez, a former vice-minister of the
now-defunct Sugar Ministry.
The other defendants face possible terms of 8 to 12 years.
The court was also asked to order more than $91 million in compensation
for "economic damage they caused to various Cuban entities and the Tax
Administration," to be paid for in part by money and assets seized
during the investigation.
A number of foreigners from several companies were swept up in the 2011
crackdown. Another Canadian, Sarkis Yacoubian of Tri-Star Caribbean, was
released earlier this year and returned home after serving 2 1/2 years
of a nine-year sentence in Cuba.
---
Associated Press writer Rob Gillies in Toronto contributed.
Peter Orsi on Twitter: www.twitter.com/Peter-Orsi
Source: HAVANA: Cuba prosecutors seek 15 years for Canadian man - Latest
News - MiamiHerald.com -
http://www.miamiherald.com/2014/06/30/4210461/cuba-prosecutors-seek-15-years.html
Cuba prosecutors seek 15 years for Canadian man
BY PETER ORSI
ASSOCIATED PRESS
HAVANA -- Prosecutors are seeking 15 years in prison for a Canadian
businessman who was arrested in a high-profile crackdown on corruption,
Cuban authorities said Monday.
The trial of Cy Tokmakjian, president of an automotive and
transportation company, the Tokmakjian Group, concluded June 12 and a
ruling is to be announced "in the coming days," according to an
announcement published by Communist Party newspaper Granma and other
official media.
The case is being watched closely by the foreign business community in
Cuba. President Raul Castro's government has said there is no place for
graft in the country, although foreign executives say gifts or cash
payments are often demanded in business dealings conducted with low-paid
government officials.
Tokmakjian is accused of using corrupt practices to obtain benefits in
business negotiations, carrying out unauthorized financial transactions,
illegally expatriating large sums of money, altering records to avoid
tax obligations and payroll irregularities.
Monday's announcement named for the first time two other Canadian
citizens among the accused, identifying them as Marco Vinicio Puche
Rodriguez and Claudio Franco Vetere.
A Canadian Foreign Affairs spokesman said diplomats in Havana are
monitoring the cases closely and providing them with consular services,
but would not comment further. Officials at the Tokmakjian Group's
Canada offices did not immediately return a message seeking comment.
Also named were more than a dozen Cubans — Tokmakjian Group employees,
government officials and executives at state-run businesses in the
tourism and nickel sectors.
Prosecutors are seeking the toughest prison sentence, 20 years, for
Nelson Ricardo Labrada Fernandez, a former vice-minister of the
now-defunct Sugar Ministry.
The other defendants face possible terms of 8 to 12 years.
The court was also asked to order more than $91 million in compensation
for "economic damage they caused to various Cuban entities and the Tax
Administration," to be paid for in part by money and assets seized
during the investigation.
A number of foreigners from several companies were swept up in the 2011
crackdown. Another Canadian, Sarkis Yacoubian of Tri-Star Caribbean, was
released earlier this year and returned home after serving 2 1/2 years
of a nine-year sentence in Cuba.
---
Associated Press writer Rob Gillies in Toronto contributed.
Peter Orsi on Twitter: www.twitter.com/Peter-Orsi
Source: HAVANA: Cuba prosecutors seek 15 years for Canadian man - Latest
News - MiamiHerald.com -
http://www.miamiherald.com/2014/06/30/4210461/cuba-prosecutors-seek-15-years.html
Critical forum may end with Cuban magazine changes
Posted on Monday, 06.30.14
Critical forum may end with Cuban magazine changes
BY ANDREA RODRIGUEZ
ASSOCIATED PRESS
HAVANA -- Launched as a bulletin for Catholic lay people, Espacio Laical
magazine became an unusually open and critical forum for debate in Cuba,
a rarity in a country where the state has controlled all media for five
decades.
Now, the sudden departure of its two longtime editors may have
endangered that status just as Cuba's Roman Catholic Church and the
Communist-run country embark on major changes.
First published in 2005, Espacio Laical's reflections on faith and daily
life were augmented by articles about politics, economics and society.
The magazine became a must-read for members of Cuba's academic and
intellectual elite — some of them the very architects of President Raul
Castro's ongoing reforms, such as allowing limited private enterprise
and decentralizing state-run businesses.
Espacio Laical "gave room to opinions from different points of view,"
said Cuban analyst and former diplomat Carlos Alzugaray, who has worked
with the magazine. "It is something that is very needed today in Cuba,
which is a public space for debate about the nation's problems."
But editors Roberto Veiga and Lenier Gonzalez resigned in early May,
later confirming they quit because the magazine's content was
controversial in the ecclesiastical community. The magazine's director,
Gustavo Andujar, said the editors left voluntarily.
Published four times a year with a press run of just 4,500, Espacio
Laical also has a website that is likely seen by few in a country where
Internet access is difficult and costly. Its footprint is much smaller
than a publications like the Communist Party newspaper Granma, published
daily and distributed to the masses across the island.
But its audience was influential, and its articles provoked debate.
In July 2013, Espacio Laical published a supplement titled "Cuba
Dreamed, Cuba Possible, Cuba Future," outlining what the country should
aspire to, including freedom of expression, political association and
private economic rights.
University of Havana religious historian Enrique Lopez Oliva said that
surely set off alarms both within the Catholic community, which is
divided over how much the church should involve itself in politics, and
for government and party officials, who say Raul Castro's reforms do not
contemplate change to Cuba's single-party system.
"These points constitute a platform for a political movement," Lopez
Oliva said. "They must have caused a certain amount of concern."
After the reforms began in earnest in 2010, Espacio Laical published
analyses by economists such as Omar Everleny Perez and Pavel Vidal, who
are associated with the government but have been relatively outspoken in
criticizing its programs. In one piece, they said there were not enough
approved free-market activities for half a million laid-off state
workers, and not enough white collar jobs for an educated population.
Other contributing writers have included academics, energy experts and
sociologists both inside and outside of Cuba. Espacio Laical also
organized gatherings with diverse participants including prominent Cuban
exile businessman Carlos Saladriegas.
Andujar told The Associated Press in an email interview that some
aspects of Espacio Laical won't change. But he also acknowledged there
will be more emphasis on topics like the arts, sciences and religious
ethics, rather than an overwhelming focus on economics and politics.
"It is not desirable that other, very broad and important aspects of the
cultural life of the country and the world find comparatively little
space," he said.
The changes at the magazine come as the church gets ready for a major
transition. Cardinal Jaime Ortega submitted his resignation in 2011 as
bishops customarily do upon turning 75. The Vatican has not yet accepted
it, but Ortega is widely assumed to be leaving soon.
Relations were hostile between the Catholic Church and the officially
atheist state for decades after Cuba's 1959 revolution. It was Ortega
that negotiated better ties, beginning the 1990s as Cuba removed
references to atheism in the constitution and Pope John Paul II visited
in 1998.
Ortega's successor will be named by Pope Francis, a Jesuit seen as a
reformer keen on social issues. Whoever takes his place as head of the
Havana Archdiocese will have to chart his own course between emphasizing
spiritual work and political involvement.
Catholic authorities want further concessions such as more access to
radio and TV airwaves, the return of more church property and permission
to begin some kind of religious education — causes that could be helped
by not antagonizing the government.
The changes at the magazine, Lopez Oliva said, "could be a shift toward
being more cautious in the political arena."
Gonzalez said neither he nor Veiga would comment on Espacio Laical
beyond their initial statement. But in a hint of their post-magazine
plans, he said Monday in a follow-up email to the AP that they are
launching a project called "Cuba Possible" — a clear echo of the
controversial 2013 supplement's title.
Gonzalez did not say whether it will be a new publication, entail more
seminars or even be affiliated with the church.
It involves a "platform that allows for the airing and channeling of
concerns and proposals from Cubans and foreigners that keep communion
with those principles," he wrote. "We hope that participants ...
interact with Cuban civil society, diaspora groups and other entities
abroad, always through open and pluralistic dialogue that seeks consensus."
Andrea Rodriguez on Twitter: www.twitter.com/ARodriguezAP
Source: HAVANA: Critical forum may end with Cuban magazine changes -
Latest News - MiamiHerald.com -
http://www.miamiherald.com/2014/06/30/4210589/critical-forum-may-end-with-cuban.html
Critical forum may end with Cuban magazine changes
BY ANDREA RODRIGUEZ
ASSOCIATED PRESS
HAVANA -- Launched as a bulletin for Catholic lay people, Espacio Laical
magazine became an unusually open and critical forum for debate in Cuba,
a rarity in a country where the state has controlled all media for five
decades.
Now, the sudden departure of its two longtime editors may have
endangered that status just as Cuba's Roman Catholic Church and the
Communist-run country embark on major changes.
First published in 2005, Espacio Laical's reflections on faith and daily
life were augmented by articles about politics, economics and society.
The magazine became a must-read for members of Cuba's academic and
intellectual elite — some of them the very architects of President Raul
Castro's ongoing reforms, such as allowing limited private enterprise
and decentralizing state-run businesses.
Espacio Laical "gave room to opinions from different points of view,"
said Cuban analyst and former diplomat Carlos Alzugaray, who has worked
with the magazine. "It is something that is very needed today in Cuba,
which is a public space for debate about the nation's problems."
But editors Roberto Veiga and Lenier Gonzalez resigned in early May,
later confirming they quit because the magazine's content was
controversial in the ecclesiastical community. The magazine's director,
Gustavo Andujar, said the editors left voluntarily.
Published four times a year with a press run of just 4,500, Espacio
Laical also has a website that is likely seen by few in a country where
Internet access is difficult and costly. Its footprint is much smaller
than a publications like the Communist Party newspaper Granma, published
daily and distributed to the masses across the island.
But its audience was influential, and its articles provoked debate.
In July 2013, Espacio Laical published a supplement titled "Cuba
Dreamed, Cuba Possible, Cuba Future," outlining what the country should
aspire to, including freedom of expression, political association and
private economic rights.
University of Havana religious historian Enrique Lopez Oliva said that
surely set off alarms both within the Catholic community, which is
divided over how much the church should involve itself in politics, and
for government and party officials, who say Raul Castro's reforms do not
contemplate change to Cuba's single-party system.
"These points constitute a platform for a political movement," Lopez
Oliva said. "They must have caused a certain amount of concern."
After the reforms began in earnest in 2010, Espacio Laical published
analyses by economists such as Omar Everleny Perez and Pavel Vidal, who
are associated with the government but have been relatively outspoken in
criticizing its programs. In one piece, they said there were not enough
approved free-market activities for half a million laid-off state
workers, and not enough white collar jobs for an educated population.
Other contributing writers have included academics, energy experts and
sociologists both inside and outside of Cuba. Espacio Laical also
organized gatherings with diverse participants including prominent Cuban
exile businessman Carlos Saladriegas.
Andujar told The Associated Press in an email interview that some
aspects of Espacio Laical won't change. But he also acknowledged there
will be more emphasis on topics like the arts, sciences and religious
ethics, rather than an overwhelming focus on economics and politics.
"It is not desirable that other, very broad and important aspects of the
cultural life of the country and the world find comparatively little
space," he said.
The changes at the magazine come as the church gets ready for a major
transition. Cardinal Jaime Ortega submitted his resignation in 2011 as
bishops customarily do upon turning 75. The Vatican has not yet accepted
it, but Ortega is widely assumed to be leaving soon.
Relations were hostile between the Catholic Church and the officially
atheist state for decades after Cuba's 1959 revolution. It was Ortega
that negotiated better ties, beginning the 1990s as Cuba removed
references to atheism in the constitution and Pope John Paul II visited
in 1998.
Ortega's successor will be named by Pope Francis, a Jesuit seen as a
reformer keen on social issues. Whoever takes his place as head of the
Havana Archdiocese will have to chart his own course between emphasizing
spiritual work and political involvement.
Catholic authorities want further concessions such as more access to
radio and TV airwaves, the return of more church property and permission
to begin some kind of religious education — causes that could be helped
by not antagonizing the government.
The changes at the magazine, Lopez Oliva said, "could be a shift toward
being more cautious in the political arena."
Gonzalez said neither he nor Veiga would comment on Espacio Laical
beyond their initial statement. But in a hint of their post-magazine
plans, he said Monday in a follow-up email to the AP that they are
launching a project called "Cuba Possible" — a clear echo of the
controversial 2013 supplement's title.
Gonzalez did not say whether it will be a new publication, entail more
seminars or even be affiliated with the church.
It involves a "platform that allows for the airing and channeling of
concerns and proposals from Cubans and foreigners that keep communion
with those principles," he wrote. "We hope that participants ...
interact with Cuban civil society, diaspora groups and other entities
abroad, always through open and pluralistic dialogue that seeks consensus."
Andrea Rodriguez on Twitter: www.twitter.com/ARodriguezAP
Source: HAVANA: Critical forum may end with Cuban magazine changes -
Latest News - MiamiHerald.com -
http://www.miamiherald.com/2014/06/30/4210589/critical-forum-may-end-with-cuban.html
French bank BNP guilty of US sanctions violations
Posted on Monday, 06.30.14
French bank BNP guilty of US sanctions violations
BY ERIC TUCKER
ASSOCIATED PRESS
WASHINGTON -- France's largest bank, BNP Paribas, has agreed to pay
nearly $9 billion to resolve criminal allegations that it processed
transactions for clients in Sudan and other blacklisted countries in
violation of U.S. trade sanctions, the Justice Department announced
Monday. The bank pleaded guilty to state charges in New York and plans
another guilty plea in federal court next month.
After months of negotiations, BNP admitted to violating U.S. trade
sanctions by processing billions of dollars in illegal transactions on
behalf of clients in Sudan, Cuba and Iran. The United States had imposed
sanctions on the countries to block their participation in the global
financial system.
The transactions, which prosecutors say were processed through its New
York branch office from at least 2004 through 2012, were handled at the
same time as human rights abuses — including the genocide in Sudan —
were occurring in those nations.
"Sanctions are a key tool in protecting U.S. national security
interests, but they only work if they are strictly enforced," Attorney
General Eric Holder said. "If sanctions are to have teeth, violations
must be strictly punished."
The goal of such sanctions is to cut off an enemy nation's access to
banks and other sources of capital, limiting its economic growth and
ability to buy weapons, food and other items available through global
trade. The restrictions on dealings with sanctioned countries generally
apply to U.S. banks and foreign banks with U.S. operations.
The roughly $8.9 billion deal is the largest sanctions case brought by
the Justice Department and the largest penalty in any criminal case
involving a bank. Prosecutors say the penalty was necessary not only
because of the sheer volume of the illicit transactions but also because
of the bank's efforts to hide them and executives' lack of cooperation
with the Justice Department.
As the BNP deal inched closer, French officials in recent weeks had
expressed deep concern about the punishment. They lobbied for White
House intervention and warned that a large penalty could affect the
entire European economy and hold up a trans-Atlantic free trade agreement.
The French economy minister last week asked the Justice Department to be
"fair and proportionate" in deciding on the potential penalty. President
Francois Hollande wrote to the Obama administration in April asking for
a "reasonable" solution, though President Barack Obama deflected calls
to get involved in the dispute.
Paris-based BNP on Monday entered a guilty plea in state court in New
York City to falsifying business records. The bank is expected to plead
guilty in federal court on July 9 for conspiring to violate the
International Emergency Economic Powers Act and the Trading With the
Enemy Act.
It has also agreed to fire multiple senior executives and will lose for
one year its ability to process certain transactions in U.S. dollars. No
individual BNP executives were charged.
"We deeply regret the past misconduct that led to this settlement,"
Jean-Laurent Bonnafe, CEO of BNP, said in a statement. "The failures
that have come to light in the course of this investigation run contrary
to the principles on which BNP Paribas has always sought to operate."
The bank said in addition to provisions it has already taken, it will
book a charge of 5.8 billion euros ($7.9 billion) in the second quarter.
"It is not hyperbole to say that the most important values in the
international community — respect for human rights, peaceful
coexistence, and a world free of terrorism — depend in large part on the
effectiveness of these sanctions," said Manhattan District Attorney
Cyrus Vance Jr., who said the investigation started with a tip to his
office.
U.S. authorities in recent years have pursued other multiple big foreign
banks for sanctions violations, though those matters have been resolved
for smaller dollar figures.
HSBC, Europe's largest bank, agreed to a $1.9 billion settlement with
U.S. and New York authorities in connection with the transfer of
billions of dollars on behalf of Iran, Cuba, Libya, Sudan and Myanmar.
Standard Chartered paid $340 million in a settlement with New York state
regulators, who accused the bank of scheming with the Iranian government
to launder billions of dollars. The bank also paid $327 million to
settle U.S. and New York charges related to currency transactions for
Iranian, Sudanese, Libyan and Burmese entities that were said to be
concealed from regulators.
Meanwhile, in two separate similar investigations in France, authorities
are also looking at Credit Agricole and Societe Generale, people
involved in the probe have said. Together with BNP Paribas, they
constitute France's top three banks.
The BNP announcement comes weeks after Credit Suisse struck a $2.6
billion plea deal with the Justice Department for helping wealthy
Americans avoid taxes. Shortly before that case was brought, Holder —
whose Justice Department has been accused of not being aggressive enough
in confronting bank misconduct — issued a video message declaring that
no bank was too large to prosecute.
Associated Press writers Marcy Gordon in Washington and Jennifer Peltz
in New York contributed to this report.
Source: WASHINGTON: French bank BNP guilty of US sanctions violations -
Business Breaking News - MiamiHerald.com -
http://www.miamiherald.com/2014/06/30/4211126/french-bank-bnp-guilty-of-us-sanctions.html
French bank BNP guilty of US sanctions violations
BY ERIC TUCKER
ASSOCIATED PRESS
WASHINGTON -- France's largest bank, BNP Paribas, has agreed to pay
nearly $9 billion to resolve criminal allegations that it processed
transactions for clients in Sudan and other blacklisted countries in
violation of U.S. trade sanctions, the Justice Department announced
Monday. The bank pleaded guilty to state charges in New York and plans
another guilty plea in federal court next month.
After months of negotiations, BNP admitted to violating U.S. trade
sanctions by processing billions of dollars in illegal transactions on
behalf of clients in Sudan, Cuba and Iran. The United States had imposed
sanctions on the countries to block their participation in the global
financial system.
The transactions, which prosecutors say were processed through its New
York branch office from at least 2004 through 2012, were handled at the
same time as human rights abuses — including the genocide in Sudan —
were occurring in those nations.
"Sanctions are a key tool in protecting U.S. national security
interests, but they only work if they are strictly enforced," Attorney
General Eric Holder said. "If sanctions are to have teeth, violations
must be strictly punished."
The goal of such sanctions is to cut off an enemy nation's access to
banks and other sources of capital, limiting its economic growth and
ability to buy weapons, food and other items available through global
trade. The restrictions on dealings with sanctioned countries generally
apply to U.S. banks and foreign banks with U.S. operations.
The roughly $8.9 billion deal is the largest sanctions case brought by
the Justice Department and the largest penalty in any criminal case
involving a bank. Prosecutors say the penalty was necessary not only
because of the sheer volume of the illicit transactions but also because
of the bank's efforts to hide them and executives' lack of cooperation
with the Justice Department.
As the BNP deal inched closer, French officials in recent weeks had
expressed deep concern about the punishment. They lobbied for White
House intervention and warned that a large penalty could affect the
entire European economy and hold up a trans-Atlantic free trade agreement.
The French economy minister last week asked the Justice Department to be
"fair and proportionate" in deciding on the potential penalty. President
Francois Hollande wrote to the Obama administration in April asking for
a "reasonable" solution, though President Barack Obama deflected calls
to get involved in the dispute.
Paris-based BNP on Monday entered a guilty plea in state court in New
York City to falsifying business records. The bank is expected to plead
guilty in federal court on July 9 for conspiring to violate the
International Emergency Economic Powers Act and the Trading With the
Enemy Act.
It has also agreed to fire multiple senior executives and will lose for
one year its ability to process certain transactions in U.S. dollars. No
individual BNP executives were charged.
"We deeply regret the past misconduct that led to this settlement,"
Jean-Laurent Bonnafe, CEO of BNP, said in a statement. "The failures
that have come to light in the course of this investigation run contrary
to the principles on which BNP Paribas has always sought to operate."
The bank said in addition to provisions it has already taken, it will
book a charge of 5.8 billion euros ($7.9 billion) in the second quarter.
"It is not hyperbole to say that the most important values in the
international community — respect for human rights, peaceful
coexistence, and a world free of terrorism — depend in large part on the
effectiveness of these sanctions," said Manhattan District Attorney
Cyrus Vance Jr., who said the investigation started with a tip to his
office.
U.S. authorities in recent years have pursued other multiple big foreign
banks for sanctions violations, though those matters have been resolved
for smaller dollar figures.
HSBC, Europe's largest bank, agreed to a $1.9 billion settlement with
U.S. and New York authorities in connection with the transfer of
billions of dollars on behalf of Iran, Cuba, Libya, Sudan and Myanmar.
Standard Chartered paid $340 million in a settlement with New York state
regulators, who accused the bank of scheming with the Iranian government
to launder billions of dollars. The bank also paid $327 million to
settle U.S. and New York charges related to currency transactions for
Iranian, Sudanese, Libyan and Burmese entities that were said to be
concealed from regulators.
Meanwhile, in two separate similar investigations in France, authorities
are also looking at Credit Agricole and Societe Generale, people
involved in the probe have said. Together with BNP Paribas, they
constitute France's top three banks.
The BNP announcement comes weeks after Credit Suisse struck a $2.6
billion plea deal with the Justice Department for helping wealthy
Americans avoid taxes. Shortly before that case was brought, Holder —
whose Justice Department has been accused of not being aggressive enough
in confronting bank misconduct — issued a video message declaring that
no bank was too large to prosecute.
Associated Press writers Marcy Gordon in Washington and Jennifer Peltz
in New York contributed to this report.
Source: WASHINGTON: French bank BNP guilty of US sanctions violations -
Business Breaking News - MiamiHerald.com -
http://www.miamiherald.com/2014/06/30/4211126/french-bank-bnp-guilty-of-us-sanctions.html
Just 50 cars sold in 6 months under new law
Posted on Monday, 06.30.14
Cuba: Just 50 cars sold in 6 months under new law
BY ANDREA RODRIGUEZ
ASSOCIATED PRESS
HAVANA -- Just 50 automobiles and four motorcycles have been sold in
Cuba in the nearly six months since a new law took effect that let
islanders buy vehicles from state-run dealerships without a special
permit for the first time in decades, authorities said Monday.
Sales totaled about $1.3 million, government news website Cubadebate
reported, for an average of some $23,800 per vehicle.
Cubadebate quoted Iset Vazquez Brizuela, first vice president of
state-owned vehicle distributor Cimex, as saying there are 11 licensed
auto dealerships nationwide.
About 11 million people live in Cuba.
Many Cubans were delighted when the new rules were announced in December
— and then left aghast by the sticker prices once they took effect the
following month.
A new Peugeot family car that listed for $262,000 in Havana would cost
$53,000 in the United Kingdom, for example, while a compact Kia Rio
hatchback that starts at $13,600 in the United States was on offer for
$42,000 in Cuba.
The licensed dealerships also sell used cars for significantly less,
often former rentals with high odometer readings. These would appear to
account for most or nearly all the sales reported by Cubadebate.
But even cheaply made Chinese sedans decommissioned from government
fleets list as used cars for well above what they command elsewhere
brand-new.
The prices were the subject of bitter and open complaint by many Cubans,
most of whom earn about $20 a month working for the government.
The state still employs the great majority of the labor force despite
President Raul Castro's economic reforms allowing some limited
private-sector enterprise. Person-to-person sale of used cars is also
now legal.
Before January, islanders who wanted to purchase a vehicle had to
acquire a "letter" of permission. The privilege was granted to the likes
of diplomats, technicians, doctors and others who served on foreign
missions and returned with hard currency saved up overseas.
Cubadebate said authorities intend for 75 percent of income from
automobile sales to be invested in public transportation.
Andrea Rodriguez on Twitter: www.twitter.com/ARodriguezAP
Source: HAVANA: Cuba: Just 50 cars sold in 6 months under new law -
Latest News - MiamiHerald.com -
http://www.miamiherald.com/2014/06/30/4211271/cuba-just-50-cars-sold-in-6-months.html
Cuba: Just 50 cars sold in 6 months under new law
BY ANDREA RODRIGUEZ
ASSOCIATED PRESS
HAVANA -- Just 50 automobiles and four motorcycles have been sold in
Cuba in the nearly six months since a new law took effect that let
islanders buy vehicles from state-run dealerships without a special
permit for the first time in decades, authorities said Monday.
Sales totaled about $1.3 million, government news website Cubadebate
reported, for an average of some $23,800 per vehicle.
Cubadebate quoted Iset Vazquez Brizuela, first vice president of
state-owned vehicle distributor Cimex, as saying there are 11 licensed
auto dealerships nationwide.
About 11 million people live in Cuba.
Many Cubans were delighted when the new rules were announced in December
— and then left aghast by the sticker prices once they took effect the
following month.
A new Peugeot family car that listed for $262,000 in Havana would cost
$53,000 in the United Kingdom, for example, while a compact Kia Rio
hatchback that starts at $13,600 in the United States was on offer for
$42,000 in Cuba.
The licensed dealerships also sell used cars for significantly less,
often former rentals with high odometer readings. These would appear to
account for most or nearly all the sales reported by Cubadebate.
But even cheaply made Chinese sedans decommissioned from government
fleets list as used cars for well above what they command elsewhere
brand-new.
The prices were the subject of bitter and open complaint by many Cubans,
most of whom earn about $20 a month working for the government.
The state still employs the great majority of the labor force despite
President Raul Castro's economic reforms allowing some limited
private-sector enterprise. Person-to-person sale of used cars is also
now legal.
Before January, islanders who wanted to purchase a vehicle had to
acquire a "letter" of permission. The privilege was granted to the likes
of diplomats, technicians, doctors and others who served on foreign
missions and returned with hard currency saved up overseas.
Cubadebate said authorities intend for 75 percent of income from
automobile sales to be invested in public transportation.
Andrea Rodriguez on Twitter: www.twitter.com/ARodriguezAP
Source: HAVANA: Cuba: Just 50 cars sold in 6 months under new law -
Latest News - MiamiHerald.com -
http://www.miamiherald.com/2014/06/30/4211271/cuba-just-50-cars-sold-in-6-months.html
Cayman Islands tells Cubans to move on or be detained
Posted on Monday, 06.30.14
Cayman Islands tells Cubans to move on or be detained
Two boats carrying 64 Cuban migrants were told they could not linger in
Cayman waters.
BY JUAN O. TAMAYO
JTAMAYO@ELNUEVOHERALD.COM
Getting tough with Cuban boatpeople who linger and resupply in the
waters of the Cayman Islands, authorities in the British territory have
ordered more than 60 Cubans to sail on or face detentions in less than
one week.
Witnesses said some of the 34 Cubans aboard a wooden boat were allowed
to go ashore and return to their craft Sunday after using bathrooms and
gathering up water in the touristy east end of Grand Cayman Island.
But the boat sailed away after Cayman authorities ordered the Cubans to
move on or be detained and eventual repatriation to their country, they
added. Another boat carrying 30 Cubans received the same orders and
sailed on Friday.
The problem arises from a 1999 agreement with Cuba that bans Cayman
officials from providing or allowing any aid to undocumented Cubans
found in territorial waters. They can allow the Cubans to continue their
voyages if their vessels are seaworthy, but if the boats are unsafe,
they detain and repatriate the migrants.
Cayman residents were quietly helping the Cubans with food, water and
boat repairs for several years until their government issued a stern
warning. But even authorities sometimes turn a blind eye to such
assistance, unless it becomes too public.
Most Cubans spotted in Cayman waters have set off from the eastern end
of their island, 125 miles to the north, and plan to ride the prevailing
currents and winds to Honduras. From there, they hope to travel by land
to the Mexican border with the United States, where they are legally
allowed to stay under the U.S. "wet foot, dry foot policy."
The wooden boat turned away Sunday from the East End Dock, in full view
of tourist bars and restaurants, appeared to be a homemade fishing
vessel, with an engine, no sail and a shark's jaws painted on its prow.
Inner tubes tied to outriggers were apparently designed to increase its
stability in rough seas, according to photos of the vessel.
Last week, another 30 Cubans were ordered to sail on or be detained
after their vessel, similar to the one on Sunday, had broken down and
drifted for nearly two weeks along the south side of Grand Cayman Island.
Residents had helped those Cubans to repair their boat and given them
food and water, according to the news Web site Cayman Compass. But
Interim Immigration Director Bruce Smith gave them 24 hours to continue
their journey or be detained. "We can't just let them float around out
there forever," Smith was quoted as saying.
Ten chose to be put ashore for repatriation to Cuba and the other 20
opted to continue the risky journey, according to Cayman Compass.
Cuban and Cayman officials have been trying to set a date for talks on
updating the 1999 agreement. Cayman has complained that Havana takes too
long to approve the repatriation of its citizens, keeping the migrant
detention center in the British territory filled with frustrated Cubans
who have staged several protests and escape attempts.
Source: Cayman Islands tells Cubans to move on or be detained - Cuba -
MiamiHerald.com -
http://www.miamiherald.com/2014/06/30/4211354/cayman-islands-tells-cubans-to.html
Cayman Islands tells Cubans to move on or be detained
Two boats carrying 64 Cuban migrants were told they could not linger in
Cayman waters.
BY JUAN O. TAMAYO
JTAMAYO@ELNUEVOHERALD.COM
Getting tough with Cuban boatpeople who linger and resupply in the
waters of the Cayman Islands, authorities in the British territory have
ordered more than 60 Cubans to sail on or face detentions in less than
one week.
Witnesses said some of the 34 Cubans aboard a wooden boat were allowed
to go ashore and return to their craft Sunday after using bathrooms and
gathering up water in the touristy east end of Grand Cayman Island.
But the boat sailed away after Cayman authorities ordered the Cubans to
move on or be detained and eventual repatriation to their country, they
added. Another boat carrying 30 Cubans received the same orders and
sailed on Friday.
The problem arises from a 1999 agreement with Cuba that bans Cayman
officials from providing or allowing any aid to undocumented Cubans
found in territorial waters. They can allow the Cubans to continue their
voyages if their vessels are seaworthy, but if the boats are unsafe,
they detain and repatriate the migrants.
Cayman residents were quietly helping the Cubans with food, water and
boat repairs for several years until their government issued a stern
warning. But even authorities sometimes turn a blind eye to such
assistance, unless it becomes too public.
Most Cubans spotted in Cayman waters have set off from the eastern end
of their island, 125 miles to the north, and plan to ride the prevailing
currents and winds to Honduras. From there, they hope to travel by land
to the Mexican border with the United States, where they are legally
allowed to stay under the U.S. "wet foot, dry foot policy."
The wooden boat turned away Sunday from the East End Dock, in full view
of tourist bars and restaurants, appeared to be a homemade fishing
vessel, with an engine, no sail and a shark's jaws painted on its prow.
Inner tubes tied to outriggers were apparently designed to increase its
stability in rough seas, according to photos of the vessel.
Last week, another 30 Cubans were ordered to sail on or be detained
after their vessel, similar to the one on Sunday, had broken down and
drifted for nearly two weeks along the south side of Grand Cayman Island.
Residents had helped those Cubans to repair their boat and given them
food and water, according to the news Web site Cayman Compass. But
Interim Immigration Director Bruce Smith gave them 24 hours to continue
their journey or be detained. "We can't just let them float around out
there forever," Smith was quoted as saying.
Ten chose to be put ashore for repatriation to Cuba and the other 20
opted to continue the risky journey, according to Cayman Compass.
Cuban and Cayman officials have been trying to set a date for talks on
updating the 1999 agreement. Cayman has complained that Havana takes too
long to approve the repatriation of its citizens, keeping the migrant
detention center in the British territory filled with frustrated Cubans
who have staged several protests and escape attempts.
Source: Cayman Islands tells Cubans to move on or be detained - Cuba -
MiamiHerald.com -
http://www.miamiherald.com/2014/06/30/4211354/cayman-islands-tells-cubans-to.html
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