The approvals for Miami International and Wilson International came
after the General Accounting Office reported improvements at the agency
that enforces the U.S. embargo on Cuba, the Treasury Department's Office
of Foreign Asset Controls (OFAC). OFAC has long complained of being
severely understaffed.
When the GAO launched its inquiry last March, the report said, ``OFAC
had not reviewed the carriers' contracts with Cuban entities or used the
information submitted by the service providers for analysis or
follow-up.''
As a result, OFAC canceled permits in September to both Wilson
International, owned by Daniel Blanco, and another charter company based
in Miami, C&T, owned by John Cabañas.
Blanco told The Herald that he had paid a $61,000 fine to Treasury for
``failing to file some papers on time,'' received a new OFAC license last
month and hopes to resume flights by next month.
Cabañas said he paid a $125,000 fine but is still waiting for a
new license. He declined comment on the reason for the fine, but a U.S.
official said Cabañas had violated some of the highly complex
embargo regulations.
The second company to receive a license from OFAC, Miami International
Charters, is a new player in the Cuba charter business. It was established
last June and is owned and managed by Pompano Beach accountant Richard
Reposa. Havana has last word
``What Havana says is what we do. They tell us we can fly two or four
times a week, Mondays or Thursdays, whatever. That's what we do,'' Blanco
said.
Only two firms are now active in the business of arranging regularly
scheduled charters to Cuba with large jetliners -- Airline Brokers Co.,
owned by Vivian Mannerud of Miami, and Gulfstream of Dania Beach. Twelve
others have permits but are inactive or fly only occasional charters with
smaller planes.
About 103,000 passengers flew aboard the charter flights last year
under legal exemptions from the embargo, according to the New York-based
U.S.-Cuba Trade and Economic Council.
Most of them were U.S. residents of Cuban extraction, visiting
relatives on the island. The rest were island Cubans coming here to visit
or migrate, or U.S. academics, journalists and business people visiting
Cuba. Reviewing the embargo
Burton asked about the legality and effectiveness of President
Clinton's order permitting a resumption of direct flights to Cuba after a
period when they were forced to go through third countries in retaliation
for Cuba's 1996 downing of two Brothers to the Rescue planes.
The GAO reply to Burton, obtained by The Herald, said OFAC had not been
reviewing the reports from the charter firms on a regular or timely basis
because it lacked sufficient employees.
``Existing resources were being devoted to other enforcement matters,
such as monitoring the operational requirements'' for the scores of
agencies licensed to sell plane tickets and send humanitarian aid packages
to Cuba, the GAO report said.
``OFAC officials also noted that the availability of further resources
would result in enhanced oversight of the regulated community,'' GAO
reported.
OFAC, with 60 staffers, is in charge of enforcing all U.S. economic
sanctions against countries like Iran, Iraq and Libya.
The GAO report also touched on several previously known aspects of the
37-year-old U.S. embargo against Cuba. Among its findings was that the
requirement between 1996 and 1998 that Miami-Havana flights touch down in
third countries such as the Bahamas or Mexico was counterproductive to
U.S. policies.
The report noted that when U.S.-based airplanes could fly the entire
route, all fares went to U.S.-based companies, but after 1996 Cuban
airplanes sometimes wound up making the last leg of the trip, giving the
Cuban government a portion of the benefits.
U.S. Customs officials also found it harder to spot travelers making
illegal trips to Cuba through third countries, the report said, since they
were mixed in with travelers making the same trip legally.
2 airlines licensed; charter flights to Cuba to double
Copyright © 1999 The Miami
Herald