A private entrepreneur and two directors from the state-run company Cítricos Ceiba in Artemisa have been apprehended following the exposure of a shocking billion-peso fraud involving charcoal, which resulted in a debt exceeding 28 million pesos. This was unveiled on Wednesday by the state-sponsored program Hacemos Cuba.
The investigation revealed that the entrepreneur, who has a criminal history of fraud and tax evasion, managed to secure a contract with the state company for exporting charcoal, despite lacking the necessary production capacity and infrastructure. In January 2024, he received an advance payment of 30 million pesos, which vanished in just nine days. The funds, which originated from a bank loan provided for the company’s working capital, were redirected to the entrepreneur’s personal expenses.
The charcoal was never delivered, and the fraud highlighted a series of irregularities within the state company’s management. The contract was never discussed by the contracting committee, lacked legal advice, and was approved without any oversight.
“Today, there is a debt of more than 28 million pesos,” admitted Reinaldo Cruz Rivera, Cuba’s Deputy Attorney General, confirming that the company’s director, its financial officer, and the private entrepreneur are under provisional detention as the investigation continues.
While 30 million pesos were handed to a phantom intermediary, the state company was amassing massive debts with local producers. Farmers reported that by May, the debt had surpassed 50 million pesos, jeopardizing planting and food supply.
Leadership Change Amid Scandal
Following the scandal, the company’s leadership was replaced, and the new head assured that debts exceeding 66 million pesos to farmers have been settled, and an internal restructuring process has begun. However, the fraud laid bare how the lack of internal controls and the collusion between officials and private individuals further sink an already struggling agricultural sector.
Corruption Reflects Pinar del Río
The Artemisa case was presented on the same television program that exposed a 15-year prison sentence for the former provincial director of Finance and Prices in Pinar del Río, accused of diverting state funds to friendly private companies, falsifying documents, and embezzling public money.
While that official and her accomplices already face lengthy sentences, the process in Artemisa is only just beginning. However, both scandals reveal a similar pattern, where state officials, instead of safeguarding the people's resources, hand them over to private entities in shady, unchecked deals.
In a nation where scarcity, unpaid producers, and hunger define daily life, the loss of 30 million pesos in a phantom charcoal deal is not merely a crime; it is yet another betrayal of the Cuban people.
Key Questions on Charcoal Fraud in Cuba
What led to the arrest of the private entrepreneur and state officials in Artemisa?
They were arrested following the revelation of a billion-peso fraud involving charcoal, which exposed significant financial mismanagement and a debt exceeding 28 million pesos.
How did the entrepreneur manage to secure a contract with the state company?
Despite having a criminal background, the entrepreneur secured the contract without having adequate production capabilities or infrastructure, highlighting a lack of proper oversight and control within the state company.
What actions have been taken since the fraud was uncovered?
The company's leadership was changed, debts to farmers were settled, and an internal restructuring process was initiated to address the issues exposed by the fraud.