An in-depth report by BBC News Mundo, released this Tuesday, unveils unprecedented details about Grupo de Administración Empresarial S.A. (GAESA), a business conglomerate tied to the Revolutionary Armed Forces (FAR) that commands approximately 40% of Cuba's GDP. This occurs while the Cuban populace endures frequent blackouts and severe shortages.
Despite its massive influence, GAESA remains shrouded in mystery. It lacks a website, doesn't release financial statements, and is absent from the state budget. Neither the National Assembly of People's Power nor the General Comptroller's Office can audit its accounts. Nevertheless, it siphons off nearly every dollar from the regime's most lucrative sectors: tourism, remittances, foreign trade, and overseas medical missions.
The BBC's investigation draws on leaked financial documents provided to the Miami Herald, featuring 22 financial statements from various companies within the group, offering concrete figures about the empire for the first time.
According to these documents, by March 2024, GAESA controlled assets valued at a minimum of $17.894 billion, with $14.467 billion held in bank accounts. These figures exclude CIMEX, the conglomerate's largest company, suggesting the actual wealth is even greater.
Pavel Vidal, an economist and leading expert on Cuban finances, aptly describes GAESA as "an economy within another economy." He elaborates, "Its financial records are secretive, Cuban media never mentions it, and it operates in complete obscurity. In fact, it doesn't pay taxes and isn't included in the state's budgets, as it has an independent budget."
The documents also revealed remarkable profitability: over $2.1 billion in profits on $5.563 billion in revenue by August 2024, a margin close to 38%, far surpassing the typical 5% to 15% for large international corporations.
Vidal notes that GAESA charges in dollars while paying salaries in Cuban pesos, a currency that has depreciated from 24 units per dollar six years ago to over 500 on the informal market.
Emilio Morales, president of the Havana Consulting Group, likens the conglomerate to an octopus that has taken hold of nearly every profitable sector of the Cuban economy over the past 15 years.
Morales asserts that real power is concentrated in no more than 15 individuals within Raúl Castro's familial and military circles. "These aren't public names; they're extremely secretive. Each company is assigned an IT specialist, an accountant, and a counterintelligence officer to oversee all accounting operations."
Juan Antonio Blanco, president of the academic platform Cuba Siglo 21, is even more blunt: "GAESA reserved itself for a small elite group within the Castro family and their closest allies. There might be some generals, but not because they're generals, rather because they're historically loyal to Raúl Castro's family."
The secrecy is so profound that in July 2024, then Comptroller General Gladys Bejerano was dismissed after 14 years in her role following an admission in an EFE interview that the state lacked the authority to audit GAESA.
In 2021, Armed Forces Minister Leopoldo Cintra Frías was replaced shortly after attempting to initiate an internal investigation into the conglomerate.
The stark contrast between GAESA's amassed wealth and the dire condition of the Cuban populace is startling. Nearly nine out of ten Cubans live in conditions of extreme poverty or mere "survival."
Understanding GAESA's Impact on Cuba's Economy
What is GAESA, and why is it significant?
GAESA is a business conglomerate linked to Cuba's Revolutionary Armed Forces, controlling around 40% of the country's GDP. Its significance lies in its dominance over key economic sectors like tourism and foreign trade, while operating with little transparency.
How does GAESA impact the Cuban economy?
GAESA influences the Cuban economy by controlling lucrative sectors and amassing significant wealth, contributing to a stark disparity between its resources and the widespread poverty among the Cuban people.