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A journalistic investigation revealed a detail that directly contradicts the official narrative of ETECSA —the state telecommunications monopoly of Cuba—, which claims to be in the red to justify the drastic increase in its rates.
According to a report by the Miami Herald this Monday, RAFIN S.A., one of the major shareholders of the state-owned company controlled by the Cuban regime's military, had over 407 million dollars in cash in August 2024.
This finding, based on confidential financial documents obtained by the American newspaper, brings back into focus the role of the Cuban economic-military apparatus in the management of key sectors such as telecommunications.
According to the cited source, the amount of 407,750,591 dollars was deposited in consolidated accounts of RAFIN S.A., a financial entity linked to the military conglomerate GAESA, which contradicts the narrative of scarcity that the authorities have used to justify the rising prices of basic services.
The president of ETECSA, Tania Velázquez Rodríguez, recently stated on television that the company is experiencing "an extremely critical situation" marked by "frauds", debt, and a lack of foreign currency.
However, the figures presented by the Miami Herald reveal that, while users must pay more than 800% extra for an extended mobile package, a company directly linked to ETECSA and controlled by the Armed Forces manages hundreds of millions of dollars without being accountable to the population or the civil structures of the State.
ETECSA: Shareholding Structure and Military Control
RAFIN S.A. is not just a "linked" company to ETECSA: it is one of its main shareholders.
In 2011, the entity acquired 27% of the shares of the company that were held by Telecom Italia, in a deal for which 706 million dollars were paid. Since then, ETECSA's capital is entirely Cuban.
Currently, ETECSA's ownership is distributed among several entities, all of which are of national capital
- Telefónica Antillana S.A. (TELAN): 51.006% of the share capital. It is a Cuban commercial company based in Havana, established to represent the interests of the State in the country's main telecommunications company.
- RAFIN S.A.: 27.003% of the share capital. A non-banking financial entity, established in 1997, authorized by the Central Bank of Cuba and linked to GAESA.
- Universal Trade & Management Corporation S.A. (UTISA): 11.086% of the share capital. A Cuban company registered abroad, associated with other state consortia.
- Banco Financiero Internacional S.A. (BFI): 6.157% of the share capital.
- Negocios en Telecomunicaciones S.A.: 3.825% of the share capital.
- Banco Internacional de Comercio S.A. (BICSA): 0.923% of the share capital.
This corporate structure highlights that state and military capital absolutely controls ETECSA, and that the telecommunications sector in Cuba is subject to political, military, and financial decisions, beyond the reach of accountability mechanisms.
RAFIN, GAESA, and the regime's control over foreign exchange
RAFIN S.A. is closely linked to GAESA (Grupo de Administración Empresarial S.A.), the most powerful economic conglomerate in Cuba, which is directly subordinate to the Revolutionary Armed Forces (FAR).
GAESA controls everything from banks and exchange houses to hotels, real estate, port companies, shipping companies, and airlines. Within its structure, RAFIN operates as a sort of internal financial fund that channels and manages income from strategic sectors such as telecommunications and tourism.
According to the Miami Herald, the funds managed by RAFIN largely come from the revenue generated by ETECSA through international top-ups and the dollar services offered to the population, especially through payments made by Cuban emigrants to their relatives on the island.
"GAESA uses RAFIN to finance its operations; that’s why it has so much money," explained a source to the newspaper, speaking on condition of anonymity for fear of reprisals.
Although RAFIN does not operate as a conventional bank, its role is to finance projects of strategic interest for the military, such as the construction of new hotels or the maintenance of GAESA's business infrastructure.
The fact that ETECSA does not have access to those funds to pay its debts or upgrade its technology reveals a model in which the priorities of the regime are focused on acquiring foreign currency, even at the expense of the degradation of basic services and the well-being of the population.
The lack of transparency and social unrest
Despite the access that these entities have to millions in funding, the official discourse insists on portraying an image of operational precariousness, forcing unpopular measures such as the increase in rates, which directly affect a population immersed in a deep economic crisis.
Meanwhile, the use of those millions in revenue remains hidden, without public audits or clear explanations regarding the use of the funds.
These revelations come at a time of increasing social discontent, evident in the thousands of criticisms published on official sites like Cubadebate following the announcement of the rate increase.
Even traditionally government-aligned sectors, such as the University Student Federation (FEU), have issued statements questioning ETECSA's decisions.
Exile organizations, such as the Cuba Study Group, have warned that this type of decision is part of a broader strategy by the regime to extract foreign currency without implementing structural reforms.
On her part, voices like that of Congresswoman María Elvira Salazar have called for cutting the flow of remittances to ETECSA as a form of pressure due to the opaque use of these resources.
Real crisis or extractive model?
The existence of over 400 million dollars in RAFIN S.A., while ETECSA allegedly cannot sustain its operations, raises essential questions about the economic structure of the Cuban state and the priority it places on the well-being of its citizens versus currency control.
Far from being an exception, this pattern is repeated in other sectors managed by GAESA. The same investigation by the Herald revealed that the tourism company Gaviota —also part of the conglomerate— accumulated more than 4.3 billion dollars in cash in 2024, while hospitals, electrical systems, and agriculture face operational crises due to a lack of budget.
The revelation not only adds a monetary dimension to the debate on connectivity, the right to information, and censorship in Cuba, but also highlights how the regime's economic apparatus prioritizes its corporate and military interests, even when the country is facing a collapse in its system of essential services.
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