Cuba to create agency to fight corruption “cancer”

HAVANA, (Reuters) – Cuba’s National Assembly will  set up a powerful new agency tomorrow tasked with fighting  corruption, which President Raul Castro has called a “deadly  cancer” plaguing the communist-ruled island’s economy.

In his regular Thursday spot on state television, Cuba’s  top economic commentator Ariel Terrero said the Comptroller  General’s Office, to be created through new legislation, will  try to ensure that state revenues are properly used.

The office will replace the Ministry of Auditing and  Control and be attached to the Council of State. It will have  sweeping powers to audit and control all government and  economic entities.

“This will … help avoid or limit the possibility (of  corruption) and respond to corrupt acts,” said Terrero, who  regularly comments on economic affairs in the state media.

Raul Castro, who took over the presidency from his ailing  elder brother Fidel Castro last year, has vowed to make the  struggling economy more efficient and productive. This includes  cracking down on graft, he has said.

Cuba’s campaign against corruption in its society and  economy has been a long one, with what leaders consider high  stakes for the future of the communist system installed after  Fidel Castro took power in a 1959 revolution.

Transparency Internation-al, a leading organization in the  global fight against corruption, ranked Cuba 65th of 180  countries on its 2008 corruption index, better placed than most  countries in Latin America and the Caribbean.

But fighting corruption is not easy on an island gripped by  economic crisis where inequality is growing and the average  wage of ministers and company managers is between $40 and $100  per month including bonuses.

One western diplomat said replacing the Auditing Ministry  with the Comptroller’s Office was a “cosmetic” step, as most  Cubans, from the humble to the privileged, struggle to make  ends meet, often involving illegal transactions.

Diversion of goods to the black market and retail-level  theft are so widespread that many people hawk their stolen  wares in front of shopping malls.
Former leader Fidel Castro once warned the country that  corruption played a big role in the demise of the Soviet Union,  for decades Cuba’s biggest economic benefactor, whose collapse  plunged the Cuban economy into crisis in the early 1990s.

“Socialist morality must be preserved … We can’t let the  idea get around that we can be bribed,” he said.
Current President Raul Castro, who served for decades as  defense minister, has also spoken out often about corruption  and its insidious effect.
“The deadly cancer has metastasized from our knees up to  here (pointing to his chest),” he told national leaders in a  closed-door speech in March 2006, according to a source who saw  a video of the meeting.

In March of this year, Raul Castro took the dramatic step  of replacing most of his cabinet, in part on grounds they were  too cozy with foreign businessmen and lax in controlling graft  beneath them.

Official information on corruption in Cuba is sparse but,  in 2000, Attorney General Juan Escalona, testifying before a  parliamentary committee, reported his office began the  prosecutions of 5,800 white-collar criminal cases.

Foreign businessmen report that corruption at the very  highest level of government is rare. But kickbacks are  relatively common among state-run company managers and even  more so at government offices where Cubans go to take care of  housing and other problems.

“The other day I went to legalize my home and the housing  director said ‘you have two choices, pay me $600 or wait two  years,’“ one Havana resident said.