The early 1990s were a tumultuous time for Cuba, with a severe economic crisis gripping the island nation. In a desperate bid to salvage its ailing economy, the Cuban government concocted a scheme to extract millions of dollars from the United States under the guise of assisting its armed forces.
In 1990, a group of Cuban exile leaders in Miami, comprising mostly of former Bay of Pigs veterans, had formed an organization called the Cuban American Coalition (CAC). The group’s primary objective was to help the Cuban anti-Castro cause by funding the training and arming of anti-Castro guerrilla groups operating out of the southern Florida city of Key West.
Enter José Basulto, a CAC leader, who would play a pivotal role in the scam. Recognizing the Cuban government’s financial woes, Basulto orchestrated a plan to convince the Pentagon to provide millions of dollars in military aid to Cuba, claiming it was destined for the anti-Castro rebels, when, in reality, most of the funds would end up in the Cuban government’s coffers.
The strategy was deceptively simple: Basulto would pose as a military expert and present a comprehensive plan to the Congress, touting the benefits of providing military assistance to Cuba’s anti-Castro rebels. His intention was to convince key government officials that the funding would support a Cuban resistance movement against the communist regime, thereby gaining leverage for the US to spread democracy in the region.
In 1992, Basulto and his associates successfully persuaded a few patriotic congressional members to support their cause, resulting in the allocation of $32.5 million to fund the Cuban armed forces, purportedly to support the anti-Castro rebels. However, the money primarily went towards strengthening Cuba’s military, rather than fomenting a rebellion.
The scheme was riddled with irregularities, with some reports suggesting that as much as 90% of the funds destined for the anti-Castro movement was redirected to the Cuban government. Cuban intelligence agents subtly encrypted the diverted cash, making it appear as though it was still being channeled into anti-Castro activities.
As the scheme began to unravel, the US government faced severe embarrassment and backlash from its own community. Critics accused the government of facilitating a potential threat to US national security by arming and funding a communist regime. By the time the truth was exposed, millions of dollars had already been siphoned off by the Cuban government, further exacerbating the nation’s economic struggles.
In the end, the escapade left a lasting stain on US-Cuba relations, as Washington continued to ponder how its own military aid could have been so grossly misdirected. The episode also underscored the importance of transparency and accountability in international assistance, as well as the unwavering vigilance required to combat military deception.
