The Cuban regime is reportedly gearing up for another crackdown on private businesses across the island, targeting especially large non-state enterprises. This operation is slated to occur from March 1 to March 30, 2025, according to a document signed by Prime Minister Manuel Marrero on February 19, which is circulating among the island's entrepreneurs and has been accessed by CiberCuba.
Although the operation is being presented as an effort to "continue organizing the relations between state companies and non-state management forms (FGNE)," it is essentially a directive from the government to Communist Party cadres to inspect contracts and payments between private and state companies, searching for any "distortions."
To execute this oversight, the Communist Party (PCC) is authorized to enlist the help of "officials from municipal and provincial assemblies; municipal administration, lawyers, comptrollers, auditors, and other specialists." This means that the Communist Party effectively wields control over both legislative and judicial powers, a practice that is strictly prohibited in democratic systems where the separation of powers is advocated and safeguarded.
This newly planned harassment against private enterprises is dubbed the "National Exercise of Prevention and Confrontation of Crime, Corruption, Illegalities, and Social Indiscipline" by the prime minister, at least in the document circulating among entrepreneurs. The regime's leadership assumes that such issues persist between state and non-state management forms.
The operation against major Cuban private entrepreneurs, suspected of collusion with state companies, is set to begin by probing "possible familial relationships between state and private entities." The PCC's efforts aim to uncover "irrationalities," along with potential illegalities in payments, whether they are below, excessive, or for unperformed work, poor quality, or any unjustifiable reasons.
PCC cadres will initially work in pairs, tasked with overseeing leases of premises or vehicles to private entities, ensuring payments are justified and correspond to actual costs, checking for deviations in their approved use, scrutinizing electricity, water, and other service expenses, ensuring adherence to business-chained policies, legal standards, and verifying that those who make decisions are not involved in negotiations," as stated in the document.
The strategy is to initially target large businesses, with plans to "generalize" this practice later on. Additionally, the document warns of two scenarios to avoid: first, preventing large private business owners from justifying their actions under the guise of "small favors or community services." Second, executing the operation by coordinating with the Communist Party on an "appropriate" communication strategy to counteract the anticipated criticism from "enemy campaigns," referring to independent media.
The document signed by Prime Minister Manuel Marrero also states that if there are any indications of "serious incidents," PCC cadres must turn the case over to the Ministry of the Interior, the Prosecutor's Office, or the Comptroller's Office. They are also instructed to inform workers of the inspection results wherever it takes place.
Essentially, the Communist Party cadres are authorized to interview executives and administrative officials and later present their inspection findings in April after submitting a report to the Department of Prevention and Crime Control, which reports to the prime minister.
In December 2024, the Communist Party of Cuba dealt another blow to private initiatives on the island following the publication of a resolution (56) by the Minister of Internal Trade, Betsy Díaz Velázquez, in the Official Gazette of the Republic (Number 119). This resolution revoked licenses for wholesale activities, previously granted to micro, small, and medium-sized private enterprises and non-agricultural cooperatives as a secondary activity in their corporate purpose.
This measure, effective December 5, was supposedly taken to "organize" wholesale and retail trade within the private initiative sector. However, in practice, it coerced "work alliances between state and non-state economic actors." Essentially, private entities must accept the state as an intermediary in purchasing goods, or there is no business.
Three months later, a document circulates announcing a new tightening of the screws on private activity.
Understanding Cuba's Crackdown on Private Enterprises
What is the main objective of the Cuban regime's new operation against private businesses?
The operation aims to inspect and control the relationships and transactions between private and state enterprises, looking for "distortions" and potential illegalities, under the guise of organizing these relations.
How will the Communist Party execute this operation?
The Communist Party will utilize officials from various assemblies, municipal administrations, and specialists to conduct inspections and scrutinize payments, contracts, and adherence to legal standards.
What recent measures have been taken against private businesses in Cuba?
In December 2024, a resolution revoked licenses for wholesale activities among private enterprises, forcing them to form work alliances with state economic actors or face business shutdowns.