Company defends Canadian exec in Cuba graft case

Posted on Wednesday, 07.02.14



Company defends Canadian exec in Cuba graft case

BY PETER ORSI

ASSOCIATED PRESS



HAVANA -- The company and family of a Canadian business executive

awaiting a court ruling in Cuba defended him against accusations of

graft, arguing that what were in fact "legitimate commercial

transactions" were wrongly characterized as corrupt at trial.



A two-page statement sent to The Associated Press by the Tokmakjian

Group also complained that company president Cy Tokmakjian's trial,

which ended June 21, was unfairly stacked against him.



It said he was held without charge for two years while the results of

the investigation were kept secret, and then given just two months to

present a defense. Meanwhile 14 of 18 proposed defense witnesses,

including international tax experts, were rejected by the court without

explanation.



"We are concerned that the outcome of the trial is predetermined given

the reluctance by the Cuban authorities to rectify gross procedural

mistakes," the statement said.



Prosecutors are seeking 15 years for Tokmakjian and 8 to 20 for more

than a dozen others named as defendants. They include two more Canadians

as well as Cuban employees of the company, government officials and

workers at state-run businesses.



On Monday, Communist Party newspaper Granma said Tokmakjian was accused

of corruption to obtain benefits in contract negotiations, unauthorized

financial transactions, illegally taking large amounts of money out of

the country, falsifying documents to avoid taxes and payroll

irregularities. A ruling is expected soon.



Tokmakjian is among a number of foreigners and dozens of Cubans arrested

in 2011 as part of a high-profile crackdown on graft that targeted

multiple businesses operating in the country.



Another Canadian, Sarkis Yacoubian of Tri-Star Caribbean, was sentenced

to nine years in 2013 but freed earlier this year and allowed to return

home.



Saro Khatchadourian, a spokesman for Canada's Minister of State for

Foreign Affairs and Consular, said Ottawa is monitoring its citizens'

legal cases in Cuba and providing them with consular services, but

declined to comment further. Canada's ambassador to Havana attended

Tokmakjian's trial.



Cuban officials did not immediately respond to a request for comment

Wednesday.



The statement from the Tokmakjian Group, an international transportation

company based in Concord, Ontario, questioned why an individual was

being held liable for a corporate tax issue, and said any claims were

purely commercial and should have been handled in arbitration rather

than a criminal court.



"A simple and objective reading of recent court decisions will lead to

the conclusion that what is shown as 'corruption' is internationally

accepted business practices," it said. "Commercial activities such as

discounting bills of exchange or providing supplier credit appear as

'evidences of corruption.' Earning profits out of a commercial activity

is considered a 'crime against (the) economic interests of Cuba.'"



Tokmakjian's trial came to a close within days of a new law taking

effect that Cuba hopes will lure much-needed foreign investment.

Officials say it safeguards commercial and personal property rights.



Though Cuban authorities made no details publicly available while the

trial was ongoing, its outcome is sure to be scrutinized by the foreign

business community and likely by potential investors.



"Although no one will (dispute) the legitimacy of Cuba to combat

corruption," the Tokmakjian Group statement said, "this fight against

corruption has been used as an excuse to deprive companies operating in

Cuba of their rights and assets with no compensation."



---



Associated Press writer Rob Gillies in Toronto contributed.



Peter Orsi on Twitter: www.twitter.com/Peter-Orsi



Source: HAVANA: Company defends Canadian exec in Cuba graft case -

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