Economist Raises Concerns Over Dubious Transfer of State Assets to Private Hands in Cuba

Cuban economist Pedro Monreal has published a critical analysis in Horizonte Cubano, highlighting the potential for corruption and the misappropriation of public assets within the current process led by CIMEX, a corporation under the military conglomerate GAESA, to transfer state assets to private entities.

Monreal points out that CIMEX is conducting tenders for commercial spaces and cooperative production contracts with food processing entities, allowing only a brief window of seven business days for proposal submissions.

The economist warns that such a short timeframe is alarming. "The seven business days allotted severely limit competition, drastically reducing the number of genuine bidders while favoring those with insider information or privileged contacts," he stated.

This process is backed by Article 28.1 of Decree Law 120/2026, the cornerstone of a set of 176 economic transformation measures approved by the National Assembly in June 2026, effective from September 9. This article explicitly permits state enterprises to sell, lease, or otherwise monetize assets through arrangements with national or foreign investors.

According to Monreal's analysis, CIMEX employs two methods to transfer operational control without relinquishing formal ownership: leasing properties and cooperative production contracts. Both approaches pose risks of asset capture, such as leases evolving into permanent de facto control, concentration of properties among a few beneficiaries, and undervaluation of state contributions in cooperative contracts.

The lack of transparency is compounded by the fact that GAESA is not subject to audits by the General Comptroller of the Republic, a reality confirmed by the Cuban regime itself.

The Spread of CIMEX Tenders Across Provinces

CIMEX tenders have been documented in several provinces. In July 2026, 12 establishments were offered in Sancti Spíritus, and another 13 units, including the Bim Bom ice cream factory and Doña Nelly bakery, were announced in Holguín under cooperative production agreements. Other state chains like Palmares and Tiendas Caribe have pursued similar paths in Havana and Santiago de Cuba.

Concerns About Beneficiaries and Rules

Monreal emphasizes that his concern is not with the expansion of the private sector per se but rather with who benefits and under what rules.

"The troubling aspect is that those claiming to defend a socialist economy are using the transfer of state assets to cement the economic power of officials, 'trusted' entrepreneurs, and front men," he argues.

Monreal, who described the 176 measures as a "monster" lacking structural coherence in June 2026, proposes corrective measures in his new analysis. These include defining "restricted subjects," such as members of the Communist Party's Central Committee, the Council of Ministers, and GAESA executives who should be barred from benefiting from these tenders during their tenure and for ten years thereafter. He also suggests implementing a minimum 30-business-day period for offers, requiring independent appraisals, and creating a public registry of awards with the identification of final beneficiaries.

"The issue is not the transition to an economy with greater private participation, but that it could be based, at least partially, on the plundering of public assets," Monreal concludes.

He also warns that lax regulations could lead to "crony capitalism, where privileged access to public assets, information, and discretionary decisions replace open competition," or to a state capitalism where political and military power centers retain strategic control while outsourcing management to select networks of private actors.