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The Cuban regime is reportedly preparing a new crackdown on private businesses on the Island. This is set to take place from March 1 to March 30, 2025, and will particularly target large enterprises in the non-state sector. This information is outlined in a document signed by the Prime Minister, Manuel Marrero, on February 19, which is circulating among entrepreneurs on the Island and has been accessed by CiberCuba.
Although the operation is being 'marketed' as an attempt to "continue organizing the relationships between state-owned enterprises and non-state management forms (FGNE)," it is actually an order that has come directly from the Executive to the leaders of the Communist Party, instructing them to conduct inspections of contracting and payment operations between private and state enterprises in search of "distortions."
To carry out this control, the political formation (PCC) may "seek assistance" from "officials of the municipal and provincial assemblies; from municipal administration, legal experts, inspectors, auditors, and other specialists." In other words, the Communist Party has the legislative and judicial powers at its disposal, something that is strictly prohibited in a democracy, where there is oversight and advocacy for the separation of powers.
To this new harassment that is allegedly emerging against private enterprise, the Prime Minister, signatory of the order, refers to it (at least in the document circulating among entrepreneurs) as the "National Exercise for the Prevention and Confrontation of Crime, Corruption, Illegalities, and Social Indiscipline," which the regime's leadership takes for granted exists between state and non-state forms of management.
This 'operation' against major private Cuban entrepreneurs, allegedly in collusion with state-owned enterprises, would begin by looking for "possible familial relationships between state and private entities." The PCC's operation would aim to detect "irrationalities, as well as potential illegalities in payments, whether under the table, excessive, or for work not performed, of poor quality, or for other unjustifiable reasons."
The PCC officials will initially operate in pairs and will have to oversee the leasing of premises or vehicles to private individuals, monitoring payments that are either unjustified or do not correspond with actual costs. They will also check for deviations in usage according to what was approved in the contracts, expenses for electricity, water, and other services, compliance with the business linkages that were intended to be achieved, adherence to the approved policies and legal norms, the use of collegiate bodies to approve contracts and payments, and clarify in all cases that those who decide do not negotiate," the document states verbatim.
The idea is to start by criticizing large businesses, looking for ways to "generalize" this practice afterward. It also warns of two scenarios that must be prevented: the first is to ensure that big private entrepreneurs do not justify their actions by citing "small favors or services to the community." The second is to carry out the operation, coordinating with the Communist Party a "suitable" communication strategy to counter the criticisms that are likely to come from "hostile campaigns," referring to independent media.
The document signed by Prime Minister Manuel Marrero adds that in the event of any indication of "serious offenses," the PCC officials must hand the case over to the Minint, the Prosecutor's Office, or the Comptroller's Office. They are also instructed to inform workers of the results of the inspection wherever it is conducted.
In essence, the Communist Party committees will have the authority to interview executives and administrative officials, and they will then be able to present the conclusions of their inspections in April, after submitting a report to the Department of Prevention and Fight Against Crime, which is under the Prime Minister.
In December 2024, the Communist Party of Cuba dealt another blow to private initiative on the island after the Official Gazette of the Republic (Number 119) published a resolution (56) from the Minister of Domestic Trade, Betsy Díaz Velázquez, which automatically revoked the licenses for wholesale activities issued to micro, small, and medium-sized private enterprises and non-agricultural cooperatives that had been approved for such activities as secondary in their corporate purpose.
The measure, which came into effect on December 5, was supposedly implemented "to regulate" wholesale and retail trade within the private initiative sector. However, in practice, it forced "working alliances between state and non-state economic actors." In other words, private players must accept the State as an intermediary in the purchase of goods, or there will be no business. Three months later, a document has surfaced announcing a new tightening of regulations on private activity.
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