Two Canadian companies under investigation in Cuba for corruption
- From: PL <pl.nospam@xxxxxxxxxx>
- Date: Wed, 21 Sep 2011 02:04:23 +0200
Being:
- Ontario-based Tokmakjian Group
- Tri-Star Caribbean
More on corruption in Cuba:
"Cuba Corrupción
Corrupción – Cuba – Corruption"
http://cubacorrupcion.impela.net/
Cuba shuts down second Canadian trading company
Fri Sep 16, 2011 2:50pm EDT
By Marc Frank
HAVANA (Reuters) – Cuba has shut down one of the most important western
trading companies in the country as an investigation into alleged
corrupt import-export practices broadened to a second Canadian firm,
foreign business sources said on Friday.
State security agents on Friday watched who entered the building in
Havana's Miramar Trade Center where Ontario-based Tokmakjian Group, one
of the top Canadian companies doing business on the communist-run
island, has its offices.
The company offices on the fourth floor were sealed with a notice that
it had been closed by Cuban State Security.
"We received notice on Monday from the foreign ministry and the Council
of State, which is the procedure in such cases, to stop all dealings
with the Tokmakjian Group," said an employee of a Cuban company that
does business with the firm.
Like other people who spoke to Reuters about the clampdown on the
company, she asked that her name not be used.
Tokmakjian Group is estimated to do around $80 million in business
annually with the Caribbean island, mainly selling transportation,
mining and construction equipment.
The company is the exclusive Cuba distributor of Hyundai, among other
brands, and a partner in two joint ventures replacing the motors of
Soviet-era transportation equipment.
Company officials were not immediately available for comment.
Cuban authorities shut down Canadian firm Tri-Star Caribbean on July 15
and arrested company president Sarkis Yacoubian. The company, considered
a competitor of Tokmakjian Group, did around $30 million in business
with Cuba.
"Apparently Tri-Star Caribbean was just the beginning. They brought in
more than 50 state purchasers for questioning, arrested some of them and
broadened the investigation from there," a western businessman said.
"As far as I know up to now just Canadian firms are involved, but you
can bet every state importer and foreign trading company in the country
is on edge," he said.
FIGHTING CORRUPTION
Cuban President Raul Castro has made fighting corruption a top priority
since taking over for his ailing brother Fidel in 2008, and in the past
year a number of Cuban officials and foreign businessmen have been
charged in graft cases.
Tri-Star Caribbean did business with around half of the 35 Cuban state
companies authorized to import, from tourism, transportation and
construction to the nickel and oil industries, communications and public
health.
The whereabouts of the man who founded the family business, Cy
Tokmakjian, of Armenian heritage, born in Syria and educated in Canada,
was not clear on Friday.
He was last seen by Reuters a week ago, the day after his offices were
sealed, but another western businessman said he had been detained by
Cuban authorities.
"They picked up Cy on Saturday and I heard his wife and at least one of
his kids flew in to see what they could do," he said.
Cuba's state-run media rarely reports on corruption related
investigations until they are concluded and those charged are sentenced.
Tokmakjian, a former mechanic, is a self-made millionaire with interests
in Canada and other countries besides Cuba, where he is a well known
figure. He made his first deal with the Caribbean island in 1988.
President Castro, a general who headed Cuba's Defense Ministry for 49
years, has cracked down on corruption as part of his efforts to revive
the country's sagging economy, but to date has done little to change the
conditions that foster it, such as low salaries and lack of transparency.
There is no open bidding in Cuba's import-export sector and state
purchasers who handle multimillion-dollar contracts earn anywhere from
$50 to $100 per month.
Castro has moved military officers into key political positions,
ministries and export-import businesses and in 2009 established the
Comptroller General's Office with a seat on the Council of State.
A source close to the Tri-Star Caribbean case said the Comptroller
General's Office had been brought into the investigation, indicating it
most likely was targeting high level officials.
Castro's crackdown has resulted in the breaking up of high-level
organized graft in the civil aviation, cigar and nickel industries, at
least two ministries and one provincial government. An investigation
into the communications sector and another into shipping are also under way.
(Editing by Jeff Franks and Vicki Allen)
http://ca.reuters.com/article/domesticNews/idCATRE78F58F20110916?sp=true
http://cubacorrupcion.impela.net/2011/09/cuba-shuts-down-second-canadian-trading-company/
Cuba probes dealings of Canadian trading firm
Reuters Marc Frank | Reuters
HAVANA (Reuters) – Cuban authorities are investigating the business
dealings of Canadian firm Tri-Star Caribbean, one of the best known
trading companies on the island, foreign business and diplomatic sources
said this week.
The cause of the investigation was not clear, but it appeared to be the
latest looking into kickbacks involving Cuban imports, sources said.
Company President Sarkis Yacoubian was picked up in mid-July for
questioning, they said, and since then as many as 50 to 60 people,
mainly company sales personnel, state purchasers and functionaries, have
been questioned and in some cases imprisoned.
Cuban President Raul Castro has made fighting corruption a top priority
since taking over for his ailing brother Fidel in 2008, and in the past
year a number of Cuban officials and foreign businessmen have been
charged in graft cases.
Tri-Star Caribbean does business with a broad assortment of ministries
and state-run businesses — from tourism, transportation and
construction to the nickel and oil industries, communications and public
health.
The company has one of the largest foreign trading offices in Havana and
has sold hundreds of millions of dollars worth of transportation,
construction and other equipment and machinery to the communist-run
country since 1996.
Yacoubian, an Armenian-born Canadian citizen, has always gotten a tip of
the hat from other foreign traders for his deftness at navigating the
turbulent and murky waters of Cuba's export-import businesses.
HIGH PROFILE
"Due to the U.S. embargo and our close links to the United States most
companies are loathe to do business directly with Cuba," said a Canadian
businessman who asked not to be named.
"So the Cubans turn to the trading companies which do the purchasing and
delivery for a high margin and inevitably run into Cuba's security
apparatus which is tasked in part with circumventing U.S. sanctions," he
said.
Tri-Star has gained a high profile in Cuba by involving itself in civic
causes and throwing lavish year-end parties for prominent local and
foreign businessmen.
Now those same circles are rife with rumors about who has been
questioned, what might be behind the investigation and Yacoubian's
whereabouts and possible fate.
An employee at Tri-Star's headquarters in Novia Scotia said he was not
there and his brother Greg, reached at a Toronto phone number, told
Reuters: "I can't make any comment right now."
A Western diplomat said the investigation was unusual because it is
being carried out by state security services, not the Attorney General's
Office.
President Castro, a general who headed Cuba's Defense Ministry for 49
years, has cracked down on corruption as part of his efforts to revive
the country's sagging economy.
He has moved military officers into key political positions, ministries
and export-import businesses and in 2009 established the Comptroller
General's Office with a seat on the Council of State.
A source close to the case said the Comptroller General's Office has
been brought into the case, "meaning big fish might be caught up in the
net."
The crackdown has resulted in the breaking up of high-level organized
graft in the civil aviation, cigar and nickel industries, at least two
ministries and one provincial government. An investigation into the
communications sector is currently under way.
Two Chileans, former Fidel Castro friend Max Marambia and his brother
Marcel, were recently given long sentences in absentia for convictions
on corrupt business charges. They will not serve them unless they return
to Cuba.
(Editing by Jeff Franks and Cynthia Osterman)
http://news.yahoo.com/cuba-probes-dealings-canadian-trading-firm-183839741.html
http://cubacorrupcion.impela.net/2011/08/cuba-probes-dealings-of-canadian-trading-firm/
.
- Prev by Date: Cuba still can't pay it's international debt
- Next by Date: Corruption probes reaches the Castro family
- Previous by thread: Cuba still can't pay it's international debt
- Next by thread: Corruption probes reaches the Castro family
- Index(es):
Relevant Pages
|
