Ronald Casso, the former general manager of Bolivia's state-owned airline, Boliviana de Aviación (BoA), has been incarcerated at the San Antonio prison in Cochabamba. He is set to serve a five-month pre-trial detention due to allegations surrounding the nearly vacant flights to Havana, which reportedly caused an economic loss of 18.4 million bolivianos (Bs) to the Bolivian government.
The decision for preventive detention was issued on Thursday, May 8, two days after Casso was apprehended near Cochabamba's Jorge Wilstermann International Airport, according to local reports.
Following his arrest, the former executive was transported under police escort to La Paz for a court hearing. However, the judicial order mandated his return to Cochabamba to serve his time in San Antonio.
Casso is under investigation for alleged breaches of duty and economically detrimental behavior, stemming from a complaint filed by the Vice Ministry of Transparency.
Questionable Route to Cuba
The legal proceedings focus on the Viru Viru (Santa Cruz de la Sierra) – Havana route, launched on October 26, 2023, as the first direct air connection between Bolivia and Cuba, part of then-President Luis Arce's "regional integration" agenda.
Investigations revealed that the route was established without a technical report on its economic feasibility. BoA management rationalized the operation's launch as a "presidential commitment" by Arce, ignoring recommendations from the airline's board to prioritize more viable routes like Córdoba or Bogotá.
Financial Misconduct and Losses
Occupancy data highlights the scale of financial waste. The Boeing 737-800, which can seat 168 passengers, flew on November 30, 2023, with only 17 people; on February 22, 2024, with 22; and on September 19, 2024, with just 11.
Across 36 flights, the average occupancy was 60 passengers outbound and 74 inbound, less than half of the aircraft's capacity.
The total estimated financial damage of Bs 18.4 million breaks down into Bs 14.4 million in operational losses due to low occupancy, and an additional Bs four million from irregular currency exchanges. BoA purchased dollars on the black market at Bs 17.50 each—over twice the official exchange rate of Bs 6.96—and paid a 10% commission to brokers.
The investigation also uncovered that the airline physically transported Bs 11.8 million in cash to Havana, circumventing the international banking system.
Legal Defense and Further Implications
BoA halted flights to Cuba on July 25, 2024, merely nine months after their inception, without providing an official reason.
Casso's defense attorney, Javier García, disputes the charges, asserting, "Between 2023 and 2024, during the operations overseen by engineer Casso, there was no economic damage; on the contrary, there was profit for the company."
García added that Casso is facing the situation with resilience: "We will respect the resolutions. I just spoke with my client; he may be upset but remains strong."
In addition to Casso, the criminal complaint filed on April 21 by the Vice Ministry of Transparency also targets five other former officials, including former Public Works Minister Édgar Montaño, who is already in preventive detention at San Pedro prison in La Paz for a different case, and former BoA board members who approved the route.
The Public Prosecutor's Office is working to ensure Casso remains in the country while more evidence is gathered regarding the approval of these unprofitable routes, marking the first effective arrest in this case.
FAQs on BoA's Controversial Flights to Cuba
What charges is Ronald Casso facing?
Ronald Casso is being investigated for alleged breaches of duty and economically detrimental behavior related to the nearly empty flights to Havana.
Why did BoA suspend flights to Cuba?
BoA suspended the flights to Cuba on July 25, 2024, nine months after they began. However, no official reason was provided for this decision.
How much economic loss did the flights cause to the Bolivian government?
The flights reportedly caused an economic loss of 18.4 million bolivianos to the Bolivian government, with a significant portion attributed to low occupancy and irregular currency exchange operations.