How do you think that Castro
Inc became an international multinational company?
First, they stole everything,
currently estimated at
$7
billion.
Second, they borrowed money
and not paid it back. Do you think that Putin wrote off
$
32 billion of Cuban debt because he is a nice guy? Or could it be that he
sees the island as a strategic location next to the US?
Finally, they're about to be
bailed out by President Obama's "one way street negotiations
style".
Keep your eyes open and
understand that you are doing business in a communist island, as these rules
confirm (
via
Capitol Hill Cubans)
"Before
you go rushing into a business venture on the island that was the communist
outpost in the Cold War, you might want to have a talk with Ross Thompson at
Classified Worldwide Consulting, which has an office in West Palm Beach.
Thompson, the firm’s managing director, has a few caveats to share.
In
particular, Thompson cautions that Cuba’s foreign investment and business laws
present six key challenges that Americans need to think through ahead of time.
They are:
1.
The Cuban government will own a majority stake in the company.
A 49-51 percent split is common, but Havana has required a larger share in some
sectors.
2.
Your local workforce will be selected by the Cuban government. This
selection may not be based on skill or merit but by seniority or
cronyism.
3.
Cuban managers will be appointed to mirror your handpicked managers, especially
if your senior leadership includes Cuban exiles.
The Cuban managers will ultimately control many decisions, or influence them,
when dealing with your majority partner, the Cuban government.
4.
Everything in Cuba is heavily influenced by Cuba’s intelligence service, the
DGI. You
must be very careful to guard your own corporate proprietary
information.
5.
Vendors you may work with may be fronts, or “cutouts,” for other foreign
intelligence services such as those from China, Russia, Iran or North
Korea. The
capture and exchange of corporate confidential information is a lucrative
business, so guard your files.
6.
The Cuban government’s payment records and credit are poor. This
means your majority business partner essentially has bad credit, and could
present challenges for you when raising capital or seeking contracts. However,
it could also move you to the front of the line when dealing with countries that
have been historically friendly to Cuba.
Furthermore, you may be investing in "stolen
property", or assets that the regime expropriated from Cubans and US citizens.
Cuba has not respected foreign investment or property laws for years. What
makes you think that they are going to respect your investment?
Listen to what the dissidents
in Cuba are saying. They want you to wait for real change to come to Cuba.
They are
not
attending the US Embassy ceremony in Havana.
Or listen to liberal
Richard
Cohen: Why
boycotting Cuba makes sense. Mr Cohen is right. Wait for real change to
come and then help us rebuild the island!
P.
S. You can listen to my show (Canto Talk) and follow me on
Twitter. Check out our Wednesday show:
