The Miami Herald got access to documents that reveal details about Gaesa’s finances and a $5 billion drop from the tourism crash.
14ymedio, Havana, August 7, 2025 — The fact that the Gaesa military conglomerate has a free hand in the Cuban economy is no secret to anyone, but knowing -with figures in hand- that the economic crisis is also affecting its finances is, to say the least, surprising. A leak of 22 internal financial documents corresponding to March and August 2024, obtained by the Miami Herald, not only provides figures on its management, but also demonstrates that the group operates without being subject to tax control or paying part of its taxes.
In the first quarter of 2024 alone, the regime’s golden goose made $2.1 billion in net profits. Cimex, its most lucrative company, was responsible for more than half of that amount, with $1.2 billion in profits as of March 2024, out of total revenues of $3.4 billion in that period, although they were even higher the previous year.
Between January and August 2024, excluding Cimex, Gaesa recorded a drop in sales and profits of 67% and 72%, respectively, compared to the same period last year.
Cimex does not appear in the 2024 balance sheets, possibly due to a cyber-security attack that paralyzed their systems in January of this year, according to the Miami Herald, which points out that the fall in the finances of the whole conglomerate -and not only Cimex- coincided with the government’s offensive against the private sector, especially against wholesalers and importers, whom it perceives as competition.
The Herald gives the example of Gaviota, the Armed Forces division dedicated to tourism, whose leaked records show that the company lost $5.8 billion in just five months last year. By March, the company had deposited $8.5 billion in “unidentified bank accounts” and in Rafin S.A., another financial institution owned by Gaesa. Five months later, the money given to Rafin was gone, and Gaviota had only $2.7 billion in the bank.
Five months later, the money given to Rafin was no more, and Gaviota had only $2.7 billion in the bank.
According to the Herald, “there is a possibility that the military may have simply transferred the missing dollars abroad or used them to finance other investments without being recorded. However, the collapse of tourism on the Island provides a reasonable explanation for at least some of Gaviota’s losses.”
The same is true for the other companies not associated with Cimex, which between March and August 2024 went from having $14 billion in liquid assets to only 9.3 billion, a fall of 5 billion attributed to the report to the collapse of tourism.
However, the size of Gaesa’s business is such that even without taking into account the contributions of Cimex, which represent about 40% of its revenues, the rest of its companies had, in March 2024, some $18 billion in assets, of which 14.5 billion were deposited in banks or financial institutions controlled by the conglomerate itself. These figures, argues the media, give an account of a business network that functions as a state within the state and which, according to the Cuban economist Pavel Vidal -consulted by the Herald-has assumed the role of “central bank.”
The business of the conglomerate continues to generate large profits. In 2023, Gaesa accumulated $17 billion in sales and $7.2 billion in net profits in the first eight months of the year. According to Vidal, these gross gains represented about 40% of Cuba’s official GDP and were 3.2 times higher than all the State’s tax revenues.
In sectors such as tourism, construction and finance, Gaesa’s role could be even greater. “I have not been able to find a similar example of a conglomerate with such a large share in the economy of a country,” Vidal said. “It even exceeds the weight of Ecopetrol in Colombia, Petrobras in Brazil or Pdvsa in Venezuela”.
Among the companies with the largest bank accounts up to March 2024 are Gaviota, with $8.5 billion; TRD Caribe, with $3.4 billion; and Almacenes Universales, with $1.6 billion.
One of the most alarming facts revealed by the documents is that Gaesa companies do not pay taxes on their foreign exchange transactions. In August of last year, the military conglomerate owed 920 million pesos in taxes -less than 1% of its domestic sales of 100 billion pesos- but had received from the State 9.2 billion as “state investment,” ten times more.
There is also no information on the taxes that Cimex should have paid, but the documents reveal that the tax deductions that Gaesa does pay end up in an institution hitherto unknown: the Revolutionary Armed Forces Tax Administration Office.
The Herald also denounced the opacity of the conglomerate’s financial records, which distort and hide its real assets.
The Herald also denounced the opacity of the conglomerate’s financial records, which distort and conceal its real assets. For example, the finances of August 2024 report a net worth of $2 billion, identical to the profits, when in reality that patrimony amounts to $13 billion, plus 28 billion pesos.
Gaesa uses the exchange rate of 1 dollar for 24 pesos in its operations, an anonymous source close to the conglomerate told the media, and its reports add up pesos and dollars as if they were equivalent.
Although much of the information is half-baked, it is clear that Gaesa’s power within the Cuban economy is greater than expected and that the tax benefits it receives favor its enrichment. In stark contrast, the Cuban people sink ever deeper into poverty, while the dollars flow to tourism, exports and banking.
Translated by Regina Anavy
____________
COLLABORATE WITH OUR WORK: The 14ymedio team is committed to practicing serious journalism that reflects Cuba’s reality in all its depth. Thank you for joining us on this long journey. We invite you to continue supporting us by becoming a member of 14ymedio now. Together we can continue transforming journalism in Cuba.