Leaked financial documents obtained by the Miami Herald revealed Cuba’s military-controlled conglomerate, Grupo de Administración Empresarial S.A. (GAESA), holds billions of dollars in assets. At the same time, the nation endures severe shortages of medicine, food and energy.
The revelations come amid Cuba’s worst economic crisis in decades.
According to the report, Gaviota, a GAESA-owned company managing hotels and tourism businesses, reportedly has $4.3 billion in its accounts. That amount is more than 10 times the $339 million needed to cover Cuba’s annual medication costs.
Another GAESA entity, Almest, allegedly redirected public funds and foreign loans into hotel construction, even as hospitals struggle with a 70% shortage of essential medications and frequent electrical grid failures.
The Cuban government blamed U.S. sanctions for its economic challenges, but experts cited decades of poor management and GAESA’s secretive handling of hard currency as significant contributors. Operating outside government oversight, some experts said GAESA functions as a “parallel economy.”
The human toll is severe. Social media videos showed residents searching through garbage for food while fuel shortages forced families to transport deceased loved ones to funeral homes by bicycle.
Despite these struggles, GAESA continues to invest billions in tourism projects. But hotel occupancy rates remain low, with seven out of 10 rooms sitting empty during the first half of 2023.
The Miami Herald reported that GAESA’s influence extends beyond Cuba’s borders. The leaked documents showed the conglomerate maintained control over remittance money, dollars sent by Cuban Americans to support family members, despite U.S. sanctions aimed at cutting those ties.
GAESA allegedly used Orbit S.A., a company marketed as independent from the military, to channel these funds into its accounts.
Critics argued that GAESA’s focus on luxury tourism projects worsened Cuba’s economic collapse. While billions remain under GAESA’s control, critical sectors like healthcare, food distribution and energy are underfunded.
