The Bureau of Western Hemisphere Affairs of the U.S. State Department criticized this Friday that the Business Administration Group S.A. (GAESA), the conglomerate of the Cuban military elite, is amassing billions while the Cuban people are lacking food, medicine, and electricity.
Through its account on X, the entity also posed an uncomfortable question for the regime: “If the Cuban army's secret war fund is not used to meet the needs of the population, what is it used for and who really governs Cuba?”
The reaction from Washington comes after the recent publication of an investigation by journalist Nora Gámez in El Nuevo Herald, which reveals how GAESA operates as an economic structure parallel to the State, with dozens of companies organized under various legal forms—from state enterprises to international economic associations and small and medium-sized enterprises (mipymes)— many of which operate off the public radar and without transparency.
According to the investigation, GAESA concentrates more than 18 billion dollars in liquid assets, does not pay currency taxes and still receives resources from the state budget.
The leak included 22 internal financial documents from GAESA, corresponding to the years 2023 and 2024, which reveal how at least 25 of its companies —including CIMEX, Gaviota, TRD Caribe, and Almacenes Universales— operate in strategic sectors such as tourism, remittances, logistics, and commerce, without any type of civilian control or accountability.
According to the analyzed data, in March 2024, GAESA had $14.467 billion deposited in banks, which represents 76% of its total liquidity. This figure exceeds the international reserves of countries like Panama or Uruguay, and is far above what the Cuban regime has allocated to meet the basic needs of its population.
Meanwhile, the island is experiencing the most severe economic collapse since the fall of the socialist bloc: daily blackouts, hospitals without supplies, empty pharmacies, and citizens searching through garbage for food. However, money exists; it is simply not being allocated to resolve the crisis.
The Cuban economist Pavel Vidal, who reviewed the documents at the request of the Herald, warned that GAESA operates as a parallel central bank, shielding itself from inflation and devaluation with an ultra-conservative policy: hoarding dollars and operating in pesos. This allows it to stay afloat while the rest of the state-owned enterprises sink.
According to official figures, 43 million dollars a year would be sufficient to cover the supply of 63 essential medications and about 250 million to stabilize the national electrical grid.
GAESA could meet both needs without touching its capital, but it chooses to keep its profits in internal accounts or in its own entities like RAFIN SA, far from public scrutiny.
Under the leadership of Raúl Castro, who at 94 years old still holds real power behind the scenes, GAESA has solidified its position as a state within a state. The leaked documents reveal not only figures but also a military power structure that operates in silence, while the regime continues to blame the American embargo for an economic disaster that, according to the numbers, could have been avoided.
In July, the Office of Western Hemisphere Affairs of the State Department criticized the regime for prioritizing spending in the tourism industry over essential sectors like health and education.
The report highlighted that in 2024, the government of Havana allocated more than 37% of its total investment to the tourism and hotel sector, a figure that exceeds the combined investment in health and education by more than eleven times, all amidst an acute shortage of medicines, food, electricity, and fuels.
A short while ago, in a text published by ShareAmerica, the official platform of the State Department, the U.S. government accused Cuba and Venezuela of maintaining authoritarian models designed to benefit the ruling elites, to the detriment of the welfare of their people.
In this regard, Washington issued on July 22 a public warning to international investors about the risks of doing business in Cuba, describing the island's economic system as a "rigged environment designed to benefit the regime and its associates."
The official publication emphasized that the real obstacle to the economic development of the island is not external sanctions, but rather internal corruption, a lack of transparency, and state manipulation of the market.
Frequently Asked Questions about GAESA and the Economic Situation in Cuba
What is GAESA and why is it relevant in the Cuban economy?
GAESA is the Business Administration Group S.A., a conglomerate controlled by the Cuban military elite that manages strategic sectors such as tourism, remittances, and trade. It is significant because it holds over 18 billion dollars in liquid assets, operating as a state within a state without accountability to the population. Its management of resources generates controversy, especially amid the economic crisis facing the island.
How does GAESA affect the economic situation in Cuba?
GAESA, by concentrating billions of dollars in assets, does not use these resources to address the basic needs of the population, such as the lack of food, medicine, and electricity. Despite having the financial capacity to alleviate the crisis on the island, it prefers to keep its profits in internal accounts or entities like RAFIN SA, which contributes to the structural impoverishment of the country.
Why does the United States criticize the Cuban regime's investments in tourism?
The United States criticizes these investments because the Cuban regime prioritizes spending on the tourism industry over essential sectors like health and education. In 2024, spending on tourism was eleven times greater than on social services, highlighting a disconnect between official priorities and the urgent needs of the Cuban population, which is facing one of the worst social and economic crises in recent decades.
Who really governs Cuba according to recent investigations?
Research suggests that Raúl Castro, at 94 years old, retains real power behind the scenes, consolidating GAESA as a state within a state. Under his command, the military conglomerate has absorbed significant economic resources that could ease the economic crisis, yet they remain under military control with no transparency or accountability to the Cuban people.
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