Identifier
Created
Classification
Origin
06HAVANA9369
2006-05-03 14:04:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
US Interests Section Havana
Cable title:  

STATE TAXIS: A TEAMING, THIEVING MICROCOSM OF GOC

Tags:  ECON PGOV SOCI CU 
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RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHUB #9369/01 1231404
ZNR UUUUU ZZH
P 031404Z MAY 06 ZDK
FM USINT HAVANA
TO RUEHC/SECSTATE WASHDC PRIORITY 6497
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RUCOWCV/CCGDSEVEN MIAMI FL
RUESDM/JTLO MIAMI FL
RHEHNSC/NSC WASHDC
RUMIAAA/USCINCSO MIAMI FL
UNCLAS SECTION 01 OF 03 HAVANA 009369 

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ECON PGOV SOCI CU
SUBJECT: STATE TAXIS: A TEAMING, THIEVING MICROCOSM OF GOC
CORRUPTION

REF: HAVANA 8986

HAVANA 00009369 001.5 OF 003


UNCLAS SECTION 01 OF 03 HAVANA 009369

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ECON PGOV SOCI CU
SUBJECT: STATE TAXIS: A TEAMING, THIEVING MICROCOSM OF GOC
CORRUPTION

REF: HAVANA 8986

HAVANA 00009369 001.5 OF 003



1. (SBU) Summary: State taxi drivers are expected to hand
over their earnings to the GOC but do everything possible
to avoid it. They play various tricks on the meter, from
turning off the ignition and coasting down the hills, to
jimmying the odometer. The GOC retaliates by installing
sensors in the seats that automatically start the meter
running when a passenger sits down. Various other sharks
prey on the proceeds of taxi drivers, including GOC
inspectors, mechanics and police officers. Some truly
"revolutionary" cabbies refrain - or pretend to refrain -
from dipping into the pot, but most have become skilled
thieves. Passengers collude in their efforts, preferring
to put money into the hands of an individual rather than
the bloated and unresponsive state. End Summary.

Fares Trickle Up
--------------


2. (SBU) There are several modes of taxi-like
transportation in Havana, but hard currency state taxis
are the most tightly regulated. These state taxis, which
charge fares in Convertible Cuban Pesos (CUCs, or "kooks"
- roughly equivalent to USD),earn a healthy income for
the GOC. At the same time, large amounts of cash cross
the hands of an unsupervised Cuban all day long - a recipe
for theft, given the culture of corruption among state
employees (ref A). By the time the cash filters through
the various levels of cabbies, accountants, and managers,
it is unlikely the Central Bank recoups more than a third
of the fares taxi drivers collect. The relationship,
therefore, between high-level GOC officials and low-level
GOC taxi drivers is one of constant "Measure, Counter
Measure," as the state tries to recoup cash and taxi
drivers come up with ingenious ways to get around the
controls.

Introducing Panataxi
--------------


3. (SBU) With several hundred drivers, Panataxi is the
largest hard currency state taxi company in Havana.
Panataxi serves a mix of clientele, but over half are
Cubans. (The other hard currency taxi companies, such as
TaxiOK and Transtur work out of the luxury hotels and
largely serve foreigners.) Several dozen unwitting
Panataxi drivers contributed to this report.



4. (SBU) Panataxi drivers work 12 - 18 hour shifts, every
other day. They earn typical state salaries - the peso
equivalent of 12 USD per month - but their real income
comes from tips. One cabby said he averaged 5 CUCs in
tips per day (roughly 5 USD). Another claimed to earn "3
on a bad day, 10 on a good day." At this rate, state taxi
drivers can expect at least 70 CUCs per month on top of
their negligible state salary, putting them in a
privileged position financially compared to other Cubans
in state jobs. One Panataxi driver dreamed of quitting
and becoming a gym teacher, but couldn't imagine living
off a regular state salary.


5. (SBU) Getting a job with Panataxi is not easy. Several
cabbies explained that starting out as a janitor, mechanic
or dispatcher was a good way to break into the business,
while others simply sighed and parroted the most common
phrase in Cuba: "No es facil" (it's not easy). Only one
driver stated outright that Panataxi applicants commonly
paid bribes to get their job.

Meter Antics
--------------


6. (SBU) While 70 CUCs per month is a coveted income by
Cuban standards, a head of household in Havana needs
closer to 200 CUCs a month to live free of anxiety.
Consequently, the state's roving, unsupervised cabbies are
well situated to make up the difference between what they
earn and what they need. The GOC, unpleased with rampant
theft among taxi drivers, quickly learned to track
proceeds by linking taxi meters to the odometer. As one
cabbie put it, "If you went back to the office with a
twenty kilometer trip that cost one CUC, then you had a
problem."


HAVANA 00009369 002.5 OF 003



7. (SBU) Starting approximately four years ago, the GOC
attempted to further stem the leak of cash by installing
sensors in the back seats that automatically turn on the
meters when clients sit down. Savvy cabbies began seating
clients in the front, until the GOC responded by wiring
both front and back seats. According to one cabbie, "even
a little baby on that seat starts the meter running."


8. (SBU) Some cabbies trick their meters by turning off
the ignition and coasting down the hills (though this
practice leads to a rough ride and annoys the passengers).
Another cabbie politely asked P/E Officer's permission to
place a padded board across the front seat to avoid
setting off the meter. Yet another established a cheap
fare before departing, then set his meter to charge only
the "just waiting" rate -- much cheaper than the usual .50
CUC per kilometer. In response to the meter's sluggish
tick he joked, "Oh, I guess it's just too hot for the
meter today!"


9. (SBU) With some difficulty, drivers can get under the
seat and either manually disconnect the sensor or reduce
its sensitivity. (The operation is easier to perform on
Russian Ladas than the newer Peugots, which come fully
wired with the latest sensor technology.) In one case of
"sensor manipulation," a tourist agreed to sit
uncomfortably with his feet up and head thrown back in
order to pay only one CUC for a seven-CUC ride.


10. (SBU) Some cabbies are unsatisfied by these
approaches, and instead pay 200 CUCs per month to have
their meters modified to switch off at the push of a
button. Ironically, Panataxi's meter repairmen are the
same ones who take payment to modify the meters. One
cabbie said the modification was expensive, but well worth
the price.


11. (SBU) Before turning off the meter, polite cabbies
feel out their clients first with a standard question:
"So, how much does it usually cost to take you over
there?" They then offer a lower rate, and if accepted,
turn off the meter. Foreigners are less likely to be
solicited than Cubans, and the question is not even raised
with anyone appearing uptight, "revolutionary," or
otherwise prone to tattling. Cabbies describe their
sporadic earnings with a Cuban refrain: "Entre col y col,
lechuga" (between each cabbage, a head of lettuce).

Fares Trickle Down
--------------


12. (SBU) In the game of "Measure, Counter Measure," the
GOC attempts to reel in thieving cabbies. Taxi inspectors
flag down cabs unexpectedly and check to see if the fares
collected are commensurate with the time on shift (in
response, most cabbies pull their meter scams towards the
end of their shifts). Inspectors also check for tampering
of sensors and meters. Finally, plain-clothed inspectors
sometimes masquerade as clients in an attempt to entrap a
thieving cabbie. One cabbie said he "lived in fear" that
he would be caught by an inspector, but that he had no
choice but to take the risk.


13. (SBU) As it turns out, inspectors themselves are not
above accepting bribes. As one cabbie explained it, "We
have needs ... and so do the inspectors." Mechanics
working for the Panataxi fleet also earn a cut in the
profits; if a cabbie fails to pay a little extra on the
side, his broken down taxi could sit on the blocks for
weeks. Finally, police officers enthusiastically pull
over state taxis for minor or invented infractions, secure
in the knowledge that a cabbie (unlike other Cubans) can
easily come up with five CUCs for a payoff.

The Righteous Cabbie
--------------


14. (SBU) Despite the constant drive to outwit the state,
taxi fleets harbor a few "revolutionary" taxi drivers as
well. For example, P/E Officer asked one cabbie why the
GOC prohibited Cubans from renting rooms in luxury hotels.
The cabbie abruptly braked and delivered this terse send-
off: "The state gave me everything. The state gave me
this car. Don't YOU talk to me about the Revolution."


HAVANA 00009369 003.5 OF 003



15. (SBU) Revolutionary sentiment does not always preclude
theft. According to the Cuban tenet of "doble moral"
(double morality),there is no contradiction between
loving the Revolution and ripping it off to survive. One
taxi driver, an ardent "Fidelista" (Fidel-lover),readily
turned off his meter, but then scolded P/E Officer for
America's long history of racism, war-mongering and
oppression.


16. (SBU) Of the several dozen cabbies interviewed, only
one said he wouldn't tamper with his sensors because this
was "stealing from the state." Nor did he pay for his
job, but rather bombarded Panataxi with paperwork and
personal visits until he finally entered as a mechanic.
His brand of work ethic (appearing, as it did, free of
revolutionary sentiment) is rarely witnessed in modern
Cuba.


17. (SBU) Less laudatory examples circulate at the other
end of the spectrum. For example, one cabbie picked up
P/E officer, turned off his meter without asking, informed
the dispatcher he was stuck "changing a tire," then drove
recklessly to save time. He subsequently short changed
his passenger, thereby managing to rip off all involved
parties in one go.

Comment
--------------


18. (SBU) Despite their reliance on stealing, most Cuban
cabbies are also polite conversationalists, responsible
drivers, and genuinely hard workers. Passengers allow
them to turn off their meters in recognition that life is
hard in Cuba, and it is preferable to put money in the
hands of an individual than an unresponsive state
apparatus. Upon boarding a cab, P/E Officer now invites
cabbies to immediately turn off the meter. The response
is universal: "Thank You, My Dear."
LEE