As always, there’s a catch to Cuba’s so-called “private” enterprise scheme | Opinion

We have witnessed an apparent growth of micro, small and medium-sized businesses in Cuba (MSMEs), a program that the regime presents as a supposed step toward economic freedom and development.

Behind the facade, however, lies a more complex reality.

The regime in Havana is making an effort to show economic openness to the world— especially to the European Union, from which it constantly profits — while exercising absolute control over companies for its convenience.

It is clear that the communist dictatorship needs more resources and international support, and MSMEs are a means to achieve this.

What’s behind seemingly independent companies?

According to various experts, there is a network around MSMEs: They have been created by senior officials of the regime, family or friends, under the aegis of the military.

Some have been registered in countries such as Panama and Canada.

One of the most striking cases is that of the Cuban spy Gerardo Hernández, now national coordinator of the Committees for the Defense of the Revolution (CDR).

Experts say Hernández is the “godfather,” if not the owner, of one of the private companies that operate in Cuba, which calls into question his autonomy and his clear connection with the state apparatus. This is just one of dozens of cases.

Furthermore, allegations that MSMEs have been used to acquire high-value properties abroad through tax havens are a cause for concern.

There is every reason to ask whether the resources generated by these companies are being used to benefit the Cuban people. The answer is No.

Gelet Fraguela, director of the ADN Cuba digital platform, publicly exposed the framework during a press conference in Miami organized by the Assembly of the Cuban Resistance.

Investigations indicate that they serve the regime as a way to obtain money through purchases made by exiles, destined for their relatives on the island. In this way, the regime capitalizes itself, in the midst of the deep crisis it has faced for decades.

The purpose of these MSMEs seems to be to open accounts in U.S. banks and then apply for loans in the name of the companies.

However, this raises additional concerns as it could lead to undue pressure on banks to use them as lobbyists and end up calling for the lifting of the U.S. embargo.

MSMEs in Cuba raise many more questions. Therefore, it is essential that the international community continues to investigate them. It must not become an additional tool of the regime to maintain control over the Cuban economy and evade international sanctions.

A genuine economic opening and business freedom in Cuba are desirable, but only with a democratic government that, as we know, has not existed on the island since 1959.

Ideally, these initiatives should be in the hands of real entrepreneurs and not used as a strategy to obtain economic resources and more power.

It is time for the United States to open its eyes to this reality.

Orlando Gutiérrez Boronat is the coordinator of the Assembly of the Cuban Resistance. He is the author of “Cuba: the Doctrine of the Lie.”