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The Comandante's Reserves (continued) Castro's Enterprises At the beginning of the 1980s, the sources of funds for the Comandante's reserves were diversified. Of unknown ownership, they were enterprises created to generate funds outside the planning system, as if they were the private property of certain government officials. These enterprises also served to launder drug money, which became known during the process leading up to the execution by firing squad of General Arnaldo Ochoa in 1989. The most important of these enterprises are the following: The Corporation CIMEX was founded by José Luis Padrón, a colonel who was assistant to José Abrahantes, the Minister of the Interior arrested along with General Ochoa: by Orlando Pérez, ex-president of the National Bank; by Regino Boti, ex-minister of JUCE-PLAN: and by Emilio Aragonés,. ambassador to Argentina and one of the persons closest to Castro on financial matters since the days of the Sierra Maestra. This corporation is a conglomeration of export and import enterprises that currently has chains of stores in Cuba that only sell in dollars. The most important of these is the chain Panamericana, which has sales of $1 million a day. Part of CIMEX is the Treviso company, initially run by Colonel Tony de la Guardia, who was shot with General Ochoa in 1989. The firm sells tobacco products, shell fish, and construction materials. It also produces knock-offs or adulterations of high-quality international goods, such as Chivas Regal whiskey or Levi's pants. From this enterprise, the now defunct Department MC (for convertible money) in the Interior Ministry was created. This was a secret operation designed to get around the U.S. embargo on Cuba. This department generated several million dollars a year, which was presented to Castro on his birthday, every August 13. The largest amount we know of involved a "gift" of $10 million, delivered in a suitcase full of bills by José Abrahantes during one of Castro's birthday parties in the 1980s. Part of this money came from drug trafficking. Independent of the net earnings of MC, CIMEX should generate a minimum of $50 million a year, possibly much more. There is information that on one occasion, toward the end of the 1980s, the enterprise suffered a loss of several million dollars speculating on the London financial markets. On that occasion, Raúl Castro became involved, severely criticizing functionaries of CIMEX for playing at capitalism, but no one was seriously punished. Cubanacán is a group of enterprises founded by Abraham Masiques, a Cuban entrepreneur who is a friend of Castro's. Cubanacán is the enterprise that opens the door to foreign investment in tourism. Like CIMEX, it has several chains of stores that sell in dollars. Cubanacán controls approximately $600 million in foreign capital, primarily from Meliá, LTI International, TRIP, Delta International, Golden Tulip International, Cosmo World, and Super Club. It is estimated that Cubanacán currently contributes around $30 million a year to the "Comandante's reserves." El Palacio de Convenciones (literally, The Convention Palace) contributes its net earnings to the Comandantes account. Its earnings are generated by international events held there, many of a political nature. The earnings it generates are on the order of $3 million to $5 million a year. Cubalse consists of a single store that was originally dedicated to selling to the diplomatic community. It is now open to any member of the general public who has dollars. It is the only store that always has beef, which it sells at monopoly prices. The beef comes from Castro's cattle reserve. Cubalse's net earnings go to enrich Castro's reserve. It is estimated that it can generate net earnings on the order of $10 million a year. Medicuba, which sells pharmaceutical products manufactured in the country, especially vaccines, generates an unknown amount of revenue that is estimated to be several million dollars. Fidel Castro is the principal investor in the biotechnology sector. He is kept informed of research on AIDS and other programs in this field. Other Revenue Sources In addition to the earnings of these enterprises, the Comandante's reserves are also supplied from other transactions, possibly the largest of which was the sale of rum factories and distilleries under the Havana Club name to the French firm Pernaud Ricard. The sale price has been estimated at $50 million, an amount that reportedly was deposited in its entirety in the Comandante's reserves. Instrumental in this transaction were Alejandro Roca, Minister of the Food Industry; Miguel Castillo, personal administrator of the Comandante's reserves; and José Alberto (Pepín) Naranjo, chief of staff to the commander-in-chief. This transaction continues to generate earnings for the Comandante's account through commissions from the sale of Cuban rum and through the currency exchange from the salaries of Cuban workers. Part of the net earnings of several foreign enterprises engaged in the growing of citrus also goes to the Comandante's reserves. Very gross estimates place these contributions at not less than $10 million or $15 million. One of the best known entrepreneurs in this sector is Max Marambio, chief of Salvador Allende's guard. Another is Angel Domper, who is married to one of Che Guevara's daughters. These Chilean businessmen are believed to be millionaires. Another source of income to the Comandante's reserves comes from loans that Castro makes to the national economy from these funds. Whenever there is a shortfall in the flow of foreign exchange - something that occurs frequently in the importation of food and oil - government officials in charge of payment submit requests for loans through Carlos Lage, Prime Minister of Cuba. If Lage passes on the request, Castro generally approves the loan, noting the date the loan is due and the interest to be paid. The latter is normally 10 percent, regardless of the length of the loan. We know of two specific transactions, one of $20 million and the other of $30 million, for imported foodstuffs, mostly cereals, and there have been other occasions involving the importation of oil. Back in the days when the Soviet Union allowed Cuba to sell for dollars its oil surplus, part of the proceeds from this implicit subsidy were suspected of making their way into the Comandante's reserves. The reason for this suspicion is that it became an established custom at JUCEPLAN that the dollars from nonconventional exports would go to such reserves.
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