Cuba convicts 12 of corruption in nickel industry

Posted on Tuesday, 08.21.12

Cuba convicts 12 of corruption in nickel industry
By PETER ORSI
Associated Press

HAVANA -- A Cuban court has convicted a dozen people of corruption,
including high-ranking government officials, an executive at a state-run
nickel company and workers from a project operating under a
Cuban-Canadian joint concern, official media announced Tuesday.

In a case involving a contract for the expansion of the Pedro Soto Alba
nickel and cobalt processing plant at the Moa mine, the sentences range
from four to 12 years, the Communist Party newspaper Granma reported.

The court in the eastern province of Holguin took into account "the
gravity of these acts and their harmful consequences in one of the
strategic activities for the nation's economy, and the conduct of the
accused, characterized by the loss of ethical values and deception," the
bulletin read.

The announcement was the first official confirmation of a probe that
since last year has been the source of rumor and private discussion by
diplomats on the island, part of a wider crackdown on graft that has
caught up several foreigners and sent a chill through the small foreign
business community.

The stiffest prison terms were handed down to Alfredo Rafael Zayas Lopez
(12 years), Ricardo Gonzalez Sanchez (10 years) and Antonio Orizon de
los Reyes Bermudez (eight years), all former vice ministers at the
Ministry of Basic Industry, which oversees nickel production.

Cristobal de la Caridad Saavedra Montero, business director of state-run
Cubaniquel, was given six years.

Accounting executive Alfredo Barallobre Rodriguez and deputy production
director Orlando Carmenaty Olmo of Empresa Moa Nickel SA.

The Moa Joint Venture that controls the mining operation is operated in
tandem by Cuba and Toronto-based mining company Sherritt International
Corp., were sentenced to six and five years, respectively.

Sherritt representatives did not immediately reply to phone and email
messages seeking comment.

Moa currently produces 37,000 tons of nickel and cobalt per year,
according to Sherritt's website.

Six other people also were sentenced. All can appeal.

Two foreign business executives told The Associated Press in November
that the same probe had led to the shuttering of Canadian companies
Tri-Star Caribbean and Tokmakjian Group as well as the investment firm
Coral Capital Group, headed up a Briton.

Two Canadians and a Czech who were reportedly detained in the case were
not listed Tuesday among those convicted.

Nickel production is one of Cuba's main sources of foreign income, along
with tourism. In April a senior government official said the mineral
accounted for 30 percent of exports in 2011, which would put nickel
revenues at $1.8 billion for the year based on recently released overall
export figures.

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http://www.miamiherald.com/2012/08/21/2961401/cuba-convicts-12-of-corruption.html