An in-depth report by the Miami Herald has uncovered that Orbit S.A., the company currently handling remittances from the United States to Cuba, is under the control of the Grupo de Administración Empresarial S.A. (GAESA), a powerful military conglomerate dominating the island's dollarized economy. This revelation challenges claims by the Cuban regime and the Biden administration, who approved a 2022 agreement with Orbit under the assurance that it had no military connections.
The investigation, drawing upon confidential documents from CIMEX—a GAESA subsidiary—and insider testimonies, illustrates how the Cuban government crafted a civilian facade to bypass sanctions imposed by the Trump administration in 2020. These sanctions had previously shut down operations of Fincimex, the former handler of remittances, also linked to the military-controlled economic network.
Military Enterprise in Civil Disguise
Orbit S.A. was introduced as an independent entity under the Ministry of Foreign Trade and Investment. However, evidence reviewed by the Miami Herald indicates otherwise. The documents reveal that Orbit functions as an extension of CIMEX, which in turn reports directly to GAESA. The connections are significant: Diana Rosa Rodríguez Pérez, Orbit's current director, has a history of senior roles within CIMEX and GAESA. Before taking her current position, she served as GAESA's executive vice president and CIMEX's vice president. Though this information has been removed from many public sources, it was verified through archived social media posts.
Rodríguez Pérez isn't the only link. A large portion of Orbit's staff consists of former Fincimex employees, and the company shares its offices in Miramar, Havana, with other GAESA-affiliated entities. A comprehensive investigation released in November 2022 by Proyecto Inventario highlighted Orbit S.A.'s ties to Fincimex, emphasizing both past employee affiliations and the physical proximity of Orbit's offices to several CIMEX and GAESA companies.
The Operational Scheme Uncovered
The documents examined by the Miami Herald show that CIMEX oversees all of Orbit's operations, including money transfers processed by Western Union and remittance agencies based in Miami, such as VaCuba and Cubamax. Orbit uses CIMEX's financial infrastructure for these transactions, with data from both companies appearing in the same monthly reports that CIMEX prepares for GAESA's top executives. A January 2024 report highlights that Orbit lost $12 million due to a cybersecurity incident affecting CIMEX's electronic systems, confirming their operational integration.
Moreover, a letter from Colonel Héctor Oroza Busutil, CIMEX's president, addressed to the president of the Central Bank of Cuba, Juana Lilia Delgado Portal, mentions a decline in transfer orders from VaCuba to Orbit and requests a meeting with the agency's leaders to resolve the issue. This contrasts with the official stance that CIMEX has no relationship with Orbit.
Economic Lifeline for GAESA
Remittances are a critical source of foreign currency for GAESA, which manages these transactions opaquely. According to Emilio Morales, director of Cuba Siglo 21, GAESA retains the dollars sent from abroad and converts them into local currency for recipients in Cuba. This allows the conglomerate to maintain a steady flow of foreign currency, which, instead of addressing the population's basic needs, is used to fund projects like hotel construction. Despite the Cuban regime's promises to allocate resources to the private sector, the reviewed documents show that military authorities have maintained tight control over remittances.
Biden Administration Under Scrutiny
The agreement between Orbit S.A. and the U.S. Treasury Department was authorized on the condition that the company had no ties to the Cuban military. However, the Herald's investigation casts doubt on this premise, and the revelations might prompt a reassessment of remittance policies. In response, Cuban-American congress members like Mario Díaz-Balart and María Elvira Salazar have intensified their criticism of the Biden administration. Díaz-Balart labeled the case as an example of the importance of rigorously applying sanctions. Meanwhile, Salazar stated that the Cuban regime "has once again been exposed for stealing the money that exiles send to their families."
Western Union, which resumed operations with Orbit in March 2023, did not comment on the Herald's inquiries, nor did VaCuba and Cubamax, other agencies processing remittances through Orbit.
A Centralized and Opaque System
Led by Brigadier General Ania Guillermina Lastres Morera, GAESA operates as a parallel economy to the central government. Former Cuban Comptroller General Gladys María Bejerano Portela stated that she could not audit the military's business conglomerate because it was not under her supervision. GAESA boasts "superior discipline and organization" due to its decades of business experience, Bejerano Portela said in an interview with EFE last May. Shortly after, she was dismissed without explanation, and her position was filled by Mirian Marbán González, who had served as the first vice comptroller general since 2018.
This centralized control has allowed GAESA to use remittances to keep its business machinery afloat, while the population faces a severe economic crisis marked by shortages of food, medicine, and fuel.
Political and Economic Consequences
The Miami Herald's revelations could have profound implications for U.S.-Cuba relations. The Biden administration, which had attempted to open communication channels with the Cuban government, could face renewed pressure from hardline sectors in Congress to tighten sanctions. Furthermore, the possibility that GAESA continues to benefit from remittances raises serious questions about the effectiveness of U.S. policies in isolating the Cuban military.
Emilio Morales noted that the lack of transparency in Orbit and CIMEX's operations makes it nearly impossible to ensure that remittances reach Cuban families directly.
The Future of Remittances to Cuba
Meanwhile, remittances remain a lifeline for many families on the island. Approximately $2 billion is estimated to be received annually in remittances, including informal transfers and goods sent from abroad. However, the perception that a significant portion of these funds ends up in the hands of the Cuban military could lead to a new wave of restrictions. Some experts suggest that a future administration, such as a potential return of Donald Trump, might implement stricter measures to prevent money from reaching a totalitarian regime that has impoverished the Cuban population, seized national wealth, violated citizens' rights and freedoms, and seeks to perpetuate itself in power through a transition to a mafia-like market state, similar to Vladimir Putin's Russia.
Key Questions on Cuban Remittances
How does Orbit S.A. relate to GAESA?
Orbit S.A. operates as an extension of CIMEX, which is a subsidiary of GAESA. Despite being presented as an independent company, it is controlled by the military conglomerate.
What impact do remittances have on the Cuban economy?
Remittances are a crucial source of foreign currency for GAESA, which uses them to fund its projects rather than addressing the population's needs, contributing to the ongoing economic crisis in Cuba.
What are the potential political implications of the Miami Herald's revelations?
The revelations could lead to increased pressure on the Biden administration to reevaluate its policies toward Cuba, possibly resulting in stricter sanctions to isolate the military's economic influence.