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Last Updated:4/21/08
March 28, 2008

A Bush Cuba advisor resigns over alleged funds misuse
By Pablo Bachelet, Miami Herald

WASHINGTON -- An aide to President Bush has resigned in the midst of an investigation by the Justice Department over allegations he misused an unspecified amount of U.S. grant money intended to promote democracy in Cuba, the White House said Friday.

Felipe Sixto, a Cuban American from Miami, was the special assistant to the president on inter-governmental affairs, dealing with Cuba, Native American issues, state legislators, Latino elected officials and Puerto Rico.

Sixto was until last summer the chief of staff of Frank Calzón, the head of the Washington-based Center for a Free Cuba. Sixto did not respond to emails and calls to his home Friday.

Calzón said he welcomed the investigation by the U.S. Justice Department and the U.S. Agency for International Development, which had provided the grants.

Neither Calzón nor the White House revealed how much money was involved but people familiar with the investigation say it could amount to several hundred thousands of dollars -- an embarassing development coming just weeks before the Bush administration is to roll out its 2008 grant program for nearly $46 million.

White House spokesman Blair Jones said the White House learned of the allegations from Sixto himself as he resigned from his post on March 20.

''Our understanding is that Mr. Sixto allegedly had a conflict of interest with the use of USAID funds in his former employment,'' Jones said. White House lawyers investigated and referred the matter to the Department of Justice.

Miami Republican Reps. Ileana Ros-Lehtinen and Mario and Lincoln Diaz-Balart said in a joint statement they were ''deeply disturbed by any allegation of misuse of taxpayer funds'' and urged the Department of Justice and the Inspector General of the USAID "to move thoroughly and swiftly in investigating all the facts in this matter.''

''The transparency and accountability of U.S. taxpayer funds require nothing less,'' they said.
Joe Garcia, the Democratic candidate to the House seat held by by Republican Rep. Mario Diaz-Balart, said the resignation underscored "the fundamental flaws of a policy designed to win votes in Miami and patronize partisan supporters -- not bring freedom to Cuba.''

In 2006, the Government Accountability Office pointed out most bids for Cuba grants were awarded without competitive bids and found some instances of abuse, like the purchase of cashmere sweaters with U.S. taxpayer money.

But the report also found that the grant money also led to large amounts of equipment and literature getting distributed to Cuban democracy activists.

The Center works with foreign governments and activists in Cuba to raise awareness on human rights abuses and distribute literature and other materials on the island. Calzón said it was the Center that initiated an investigation in mid-January when ''an allegation'' of the misuse of funds emerged.

''As weeks went by and some substance came up on the charges, a letter went to the inspector general of USAID,'' he said. "We expect all the money to be returned.''

But he said the funds will be returned to the U.S. government, not the Center.

''So in effect, beyond the lawyers, the hassle, the investigation, the betrayal that some of us feel,'' Calzón said, "it is also an economic thing that we're going to lose money.''
Sixto, who is in his late 20s, is married and has one child.

Copyright 2008. The Miami Herald. All rights reserved.

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