Cuba targets military firm in corruption probe

By Marc Frank

Cuba has detained top executives of the powerful military-run Tecnotex company, broadening a corruption investigation that has already shuttered three foreign firms, foreign business sources told Reuters.
Tecnotex is one of the most important trading companies on the Communist-run island, purchasing equipment, technology, construction materials and other goods for a myriad of military-owned firms in the civilian sector of the economy.

Tecnotex's director Fernando Noy was among those arrested, according to a foreign businessman who deals with the company. "They went right into the Tecnotex office and took Noy out in handcuffs," he said. Other sources also said Noy was detained.

The reported arrest follows that of the chief executive officers of one British and two Canadian companies along with a number of their Cuban employees and purchasers for state-run firms - all of whom had dealings with Tecnotex, according to the sources. The chief executives remain in custody.

Noy is a military officer and is well-known within Cuba's business world. His reported arrest could not be confirmed with Cuban authorities.

However, the company told callers that Noy no longer worked for Tecnotex and had been replaced by Belkis Mir Verdura. The firm's commercial director has also been removed while a deputy sugar minister, arrested in October, remains behind bars in connection with the probe.

A crackdown began when President Raul Castro succeeded his older brother Fidel as president in 2008 and said widespread theft and corruption had to be eliminated because it contributed to Cuba's chronic economic woes.

It coincided with reforms to strengthen Cuba's socialist system. Dozens of Cubans have been jailed, including former government officials and top executives of state companies. More >>