Cuba USAID program gets overhaul
Wa****ngton works to improve and broaden the democracy program, which has
been criticized as wasteful and corrupt.
By Paul Richter, Los Angeles Times Staff Writer
May 7, 2008
WA****NGTON -- The Bush administration is overhauling a controversial
democracy-promotion program for Cuba in hopes of tightening financial
controls and broadening the effort beyond the anti-Castro groups in
Florida that have dominated it.
The program's goal is to help Cuban dissidents and spread ideas to
hasten a ****ft away from the Castro government. But critics have charged
that the 12-year-old program has been wasteful and done less for those
in Cuba than for the Cuban American-led groups around Miami that receive
most of the grant money.
Now the U.S. Agency for International Development, which oversees the
program, is trying to persuade Central European and Latin American
nongovernmental groups to join U.S. organizations in applying for its
grants.
A chief goal, officials say, is to spend most of the $45-million budget
on communications equipment, such as cellphones and Internet gear, that
possibly could be smuggled into Cuba to increase its people's exposure
to the outside world.
The transition from Fidel Castro's leader****p to that of his brother
Raul "is a unique moment" for Cubans, said Jose Cardenas, who heads the
USAID program for the island nation. "We think it presents an
op****tunity for real, profound change in Cuba.
"Frankly, there's a risk that the regime will confiscate a lot of the
stuff. But that's a risk we're willing to take," Cardenas said, because
of the im****tance of trying to influence public opinion at a crucial
point.
Some critics, though welcoming change, remain skeptical that the program
can bring much to the Caribbean island.
The program was criticized in a November 2006 Government Accountability
Office re****t that found it lacked proper oversight. Groups funded by
the program made questionable purchases, including cashmere sweaters and
Godiva chocolates, and 92% of its grants had been awarded without
competitive bids, evidence of "internal control deficiencies," the GAO
found.
In March, the Cuban American National Foundation, a longtime anti-Castro
group, re****ted that four of the program's largest grant recipients used
only 17% of the money in direct assistance to Cubans. The remainder went
to salaries, research, travel and other operating expenses.
The foundation urged in its re****t that the program spend more on direct
aid, including cash assistance. It also recommended that groups
receiving grants be required to have other sources of revenue, to avoid
the appearance of being a creature of the U.S. government.
The effort suffered a further blow in March when a White House aide
resigned after the disclosure that the FBI was investigating him for
allegedly misusing funds intended to promote democracy in Cuba. Felipe
Sixto, who was special assistant to President Bush for intergovernmental
affairs, formerly worked with the Center for a Free Cuba, a recipient of
USAID grants.
Cardenas, of USAID, said that the agency reviewed its procedures in
light of the GAO re****t, and will rely on competitive bids and increase
financial monitoring of the grants.
USAID is hoping to receive bids from Central European and Latin American
nongovernmental groups that have experience with dissidents in
authoritarian societies, Cardenas said. "They know how to evade the
authoritarian governments' efforts to control your behavior," he said.
And because they are not U.S. organizations, it will be easier for their
staff members to enter Cuba and make contact with people, he said.
He acknowledged that these groups face serious obstacles in trying to
smuggle gear to Cubans when intelligence officials are watching.
Cardenas also hinted that USAID may change its policy against
distributing cash to Cubans, which was based on concern over
accountability. Despite criticism, Congress has tripled the budget of
the democracy promotion program, Cardenas noted.
Francisco J. Hernandez, president of the Cuban American National
Foundation, said in an interview that his group was "quite positive"
about USAID's planned changes. But others have misgivings.
Rep. Jeff Flake (R-Ariz.), a leading advocate of expanded contacts with
Cuba, praised the use of competitive bidding, but remained skeptical
overall. Lifting travel restrictions would be more effective, he said.
paul.richter@[EMAIL PROTECTED]
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