Cuban Military Prepares for Berman's Bailout

September 29, 2010

While House Foreign Affairs Chairman Howard Berman (D-CA) prepares to markup legislation on tourism to Cuba, Castro's military prepares to reap the profits.

According to Reuters:

Military man to head Cuba's [Castro's] biggest company

President Raul Castro has put a military officer in charge of Cuba's largest commercial corporation as part of a drive to increase efficiency and reduce corruption in the country's major foreign exchange companies.

Colonel Hector Oroza Busutin arrived at the headquarters of the Cuban Export-Import Corporation (CIMEX) earlier this month, replacing its long-time President Eduardo Bencomo, according to various company employees.

"Since then, there have been a lot of military people running around here," one of them said, asking that her name not be used.

Since taking over the presidency from older brother Fidel Castro in 2008, Raul Castro has taken steps to boost Cuba's troubled state-run economy and weed out corruption.

He reportedly wants to brings some of the country's independent companies under government ministries and views consolidation, which has already begun, as the best path forward.

In many cases, he has entrusted the task to military officers, with whom he is said to feel more comfortable after almost five decades as Cuba's defense minister.

At least 10 military men hold positions in his cabinet or as deputy ministers and heads of key agencies.

Oroza Busutin moved to CIMEX from his position as No. 2 in the military-run Administrative Group of Businesses (GAE.SA), a holding company which also operates numerous foreign exchange businesses including the country's largest tourism corporation and real estate firm, a chain of warehouses and hundreds of retail outlets selling everything from groceries to domestic appliances.

Castro's son-in-law, Colonel Luis Alberto Rodriguez, is the chief executive of GAE.SA.

CIMEX's new deputy director, Ana Maria Oretega, held a similar position at the military's retail chain, TRD-Caribe, according to the company sources.

"I'm not surprised. It follows the trend under Raul," said a Western diplomat in Havana.

The appointment has not been announced despite CIMEX's relations with hundreds of foreign suppliers and significant role in Cuba's everyday life.