Identifier
Created
Classification
Origin
06TUNIS1672
2006-07-05 12:26:00
CONFIDENTIAL//NOFORN
Embassy Tunis
Cable title:  

CORRUPTION IN TUNISIA PART IV: THE FAMILY'S HOLDINGS

Tags:  PGOV PREL ECON TS 
pdf how-to read a cable
VZCZCXYZ0016
PP RUEHWEB

DE RUEHTU #1672/01 1861226
ZNY CCCCC ZZH
P 051226Z JUL 06
FM AMEMBASSY TUNIS
TO RUEHC/SECSTATE WASHDC PRIORITY 1187
INFO RUEHAS/AMEMBASSY ALGIERS PRIORITY 7244
RUEHRB/AMEMBASSY RABAT PRIORITY 8175
RUEAIIA/CIA WASHINGTON DC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
C O N F I D E N T I A L TUNIS 001672 

SIPDIS

NOFORN
SIPDIS

STATE FOR NEA/MAG - HARRIS

E.O. 12958: DECL: 07/04/2016
TAGS: PGOV, PREL, ECON, TS
SUBJECT: CORRUPTION IN TUNISIA PART IV: THE FAMILY'S
HOLDINGS

REF: A. TUNIS (PART 3)
B. TUNIS 1630
C. TUNIS 1622

Classified By: AMBASSADOR WILLIAM HUDSON FOR REASONS 1.4 (b) AND (d)

C O N F I D E N T I A L TUNIS 001672

SIPDIS

NOFORN
SIPDIS

STATE FOR NEA/MAG - HARRIS

E.O. 12958: DECL: 07/04/2016
TAGS: PGOV, PREL, ECON, TS
SUBJECT: CORRUPTION IN TUNISIA PART IV: THE FAMILY'S
HOLDINGS

REF: A. TUNIS (PART 3)
B. TUNIS 1630
C. TUNIS 1622

Classified By: AMBASSADOR WILLIAM HUDSON FOR REASONS 1.4 (b) AND (d)

1. (C/NF) SUMMARY: This is the last of a four cable series
on corruption's impact on the Tunisian economy and Tunisia's
political future. The Ben Ali and Trabelsi clans are an
increasingly large group that has established important
control in major business sectors, the media, and in the
politically significant sports world. While verifying the
rumors of their holdings is nearly impossible, as few can or
will confirm particular assets, the extent of these rumors
provides some evidence of their accuracy. Part Four of this
series discusses who are the major family members and what
are their holdings. The list is not exhaustive, but
represents what most observers believe to be the facts about
the First Family's businesses. END SUMMARY.

2. (C/NF) When talking about corruption, Tunisians rarely
discuss President Zine el Abidine Ben Ali without mentioning
"the Family" which includes the extended families of his
children and his present wife, Leila (ne Trabelsi). In
Tunisia's small subset of commercial actors, it seems at
least half of the elite are rumored to be somehow related or
connected to the President. The notion of a protected elite
is nothing new to any developing country, and jokes,
anecdotes and fanciful rumors about clan members are
abundant. But over the course of the last ten years, the
Family's influence has grown significantly and Tunisians'
anxiety about this has grown proportionately.

3. (C) Ben Ali's family can most easily be understood in
terms of two major lineages: children and in-laws from his
first wife, Naima Kefi, and the relatives of his present
wife, Leila Trabelsi. Ben Ali has three daughters with Kefi:
Ghaouna, Dorsaf, and Cyrine (married respectively to Slim
Zarrouk, Slim Chiboub, and Marouene Mabrouk; each of whom is
a significant economic actor). Ben Ali also has three
children with current wife, Leila: Nesrine (19),Halima
(13),and Mohamed Zine el Abidine (1). Ben Ali has seven
sibl
ings, while wife Leila is believed to have ten, the most
notorious of whom is her brother, Belhassen Trabelsi. In
addition to these direct family members, there is a variety
of other key actors who are believed to be successful due to
their marriage ties to the Ben Alis or Trabelsis.

4. (C/NF) The Family's financial interests involve a sharing
or spreading of wealth that has a geographic dimension: the
First Lady's side is believed to dominate the greater Tunis
region; the President's side exercises more power in the
central coastal region where he was born. While this
division is relevant in the business world, observers also
believe that Leila's growing influence and interests may at
times conflict with Ben Ali's political plans. Senior
officials are often rumored to be "Trabelsi-supported" or
"Ben Ali-backed," with few believed to be favored by both the
President and First Lady.

5. (C/NF) The following is an overview of the key family
members and their business holdings. While some of the firms
mentioned below are publicly known to be owned by specific
family members, other business activities remain unconfirmed,
as those directly involved are unwilling or unable to share
the details. Average Tunisians have many stories about who
owns what and how they acquired it, however, evidence is
almost always unavailable and specifics vary depending on who
is telling the story. As in many countries, it is also
believed that family members register new holdings in the
names of their children, friends or other contacts in order
to restrict the knowledge of their activities. Given these
limitations, post has attempted to provide as complete and as
accurate a compilation as possible.

I. Ben Ali's Relations
--------------

6. (C/NF) Presidential siblings: President Ben Ali has seven
siblings: Moncef, Houria, Hayet, Slaheddine, Tijani, Naima,
and Najet. Prior to his death in 1996, Moncef Ben Ali was a
known drug trafficker and black market trader. An
international arrest warrant was issued for his arrest in
France in 1992 and he was sentenced to 10 years in prison in
absentia. Moncef has two children, son Sofiane (married to

Hedi Djilani's daughter, see para 15) and a daughter.
Sofiane is the local partner of international duty free
services Weitnauer Group, operating concessions at Tunisian
airports. Houria has three sons: Ajmi, Hichem, and Mohamed
Frej Daous: Ajmi and Hichem both run hotels in Sousse;
Mohamed is a former governor of Tunisia,s Central Bank.
Family members also head the Northern Sousse Development
Society (Societe de Developpement de Sousse Nord).

7. (C/NF) Ben Ali,s sister Hayet is based in Germany but
owns hotels and property in the Sousse region; she has three
sons: Mehdi, Hamed, and Doraid. Mehdi was the former
Environment Minister, Hamed is a Presidential Advisor, and
Doraid imports automobiles. Brother Slaheddine has one son,
Kais, and together they import used clothing and scrap metal,
trade in luxury cars, and are allegedly involved in the black
market alcohol trade. They also own the real estate firm
Societe Immobiliere Monia and the Adam Park (a theme park in
the Sousse area). Brother Tijani is CEO of the Societe
Minerva Immobiliere, another real estate development company,
and is a key shareholder in Aero-Travel, an airport services
company. Sister Naima and family are involved in the luxury
car market. Sister Najet is married to Sadok M'Hiri;
together, they have two sons Neji and Dhafrallah. Family
holdings include Societe El Almana Import/Export, Meublatex
group, Les Metiers, Meubles Modulaires, Panabois, Profilex,
Le Matelas, Polymeuble, Ste. Tiossage, Panoverre, Mouradi
Hotel Chain, Karthago Airlines (shareholders),and Deternet.
Dhafrallah was former head of Agence Tunisienne d'Internet
and director general of TunisAir.

II. First Lady,s Family
--------------

8. (C/NF) First Lady Leila (Trabelsi) Ben Ali has ten known
siblings, including Belhassen, Imed, Moncef, Bdiri, Jelila,
Adel, and Mourad. Other prominent relatives include her
mother, Hajja Nana, considered the "doyenne" of the family,
and niece Lilia Nacef. While President Ben Ali's family is
known to have active business interests, Tunisians complain
most bitterly about the Trabelsi family's extended reach in
commercial circles. Additionally, elite Tunisians complain
that the Trabelsis are a largely uneducated lot that exploit
the country for their own benefit, while engaging in
conspicuous consumption that the Tunisian elite has
traditionally avoided. The disgust over the Trabelsis public
activities only contributes to rumors about their alleged
activities, and most major commercial decisions are believed
to be influenced by the Trabelsis. For example, when Dubai
Holdings recently won a major contract for a southern Tunis
waterfront development, rumors about Trabelsi ties to Dubai
Holdings immediately began to circulate.

9. (C/NF) Brother Belhassen Trabelsi is considered to be the
most notorious, corrupt and prominent of Leila's family
members. In fact, he represents the epitome of what
Tunisians hate about the Trabelsis. If only half the rumors
about him are true, one would wonder where he found the time
to be such a heartless, voracious monster. In any case, that
is certainly how he is depicted by Tunisians discussing
corruption. DCM's neighbor, a retired Tunisian ambassador,
identified three palatial dwellings within 300 meters of DCM
residence in Carthage that she claims were taken from their
owners by Trabelsi (who reportedly just tells people he is
buying their property and for how much). All three are
undergoing major renovations that include significant
expansion of the building's footprint, generally forbidden by
the Carthage historic area's strict zoning regulations.
Every sighting of a Porsche Cayenne, Bentley, or Hummer
zooming down the road or running a red light becomes a
Belhassen sighting (even though others are also known to own
these rare-in-Tunisia vehicles). There are even stories of
Belhassen entering restaurants and overtly laying a pistol on
the table-- in gun-free Tunisia.

10. (C/NF) Trabelis' publicly known investments include:
Karthago Airlines; Karthago Travel Services; Karthago Hotel;
Aviation Training Center of Tunisia; Global Telecom
Networking; Alpha Ford International (created following the
privatization of Autotractor); Compagnie Mediterraneenne
D'Etudes et de Realisations Touristiques (COMMERT); Societe
de Promotion Touristique et de Plaisance; Societe
D'Investissement dans les Loisors et Tourism (SILT - SICAF);
Alpha Bus Tunisie; Societe d'Etudes des Realisations
Touristiques; Societe de Promotion Hoteliere Khamsa; Societe

des Services Nationaux et des Residences (SNR); Societe
Gammarth Immobiliere. He is also believed to be unscrupulous
in his business dealings and to be willing to utilize
bribery, extortion and otherwise manipulate the market to his
advantage. For example, it is reported that the local
Citroen dealership attracted Trabelsi's attention. Unwilling
to grant him ownership concessions, Citroen is reportedly
paying Trabelsi directly in order to continue operations.
Despite this, local business contacts report that President
Ben Ali considers Belhassen Trabelsi "a very successful
businessman" and meets often with him. Most recently,
Trabelsi is in talks with Egypt's commercial giant Orascom
about expanding Karthago into Egypt as a joint venture.

11. (C/NF) Other Leila siblings are Imed (controlling Societe
Univers Carriers) and Moncef (owner of SOTRAMA - Societe
Trabelsi de Marbre Artificiel). There is also a favored
niece, Lilia Nacef, married to Mourad Mahdoui, and together
they run Societe l'Opera de Culture, Sport et Loisirs, which
has an 80-year lease on four hectares in Belvedere Park to
develop an amusement park and they also run Bien Vu, an
advertising company. Other lesser known Trabelsis include
Bdiri, Jelila, Adel, and Mourad, and their companies include:
Societe de Promotion Immobiliere Dar Mabrouka; Societe de
Promotion Immobiliere Dar Essaada; Societe de Mise en Valeur
et de Developpment Agricole El Kaouther; 3E Services (Societe
d'Exploitation des Eraux et de l'Environment Services);
Societe Agricole Essania; and Societe Tunisienne d'Emballage
de Jus.

III. Sons-in-Law:
--------------

12. (C/NF) Slim Zarrouk: Slim, husband of Ben Ali daughter
Ghaouna, created his first business, Plastec, in 1982 to
manufacture plastic products. He later acquired state-owned
La Ceramique in one of Tunisia,s first privatizations. La
Ceramique,s assets include significant holdings and two
board seats at SOTETEL, which produces telecommunications
equipment and was spun off from Tunisie Telecom (the national
telecommunications monopoly). In September 2003, Plastec
launched a major venture with Plastiques de Val du Loire
(PVL) to build a factory in Sousse, producing plastic
automobile, telephone, and household component equipment.
This new company is called Tunisie Plastiques Systemes (TPS).
Zarrouk,s other holdings include: Mediterranean Air
Service, MEDINVEST, MEDSOFT, Nortene Tunisie, and SMVDA
Domaine Neferis.

13. (C/NF) Slim Chiboub: This Slim is married to Ben Ali,s
second daughter, Dorsaf. Chiboub is also the nephew of
well-known businessman, Taoufik Chaibi, whose interests
include advertising, sports franchises, retail distribution,
and trading. Chiboub is known for using shell companies,
particularly through the Mzabi family (see para 16) to
promote his business interests. Until recently, Chiboub was
the head of a major sports club (and current Tunisian soccer
league champion),Esperance, but was reportedly relieved of
that position by President for unknown reasons.

14. (C/NF) Marouene Mabrouk: Marouene is married to Ben
Ali,s youngest daughter, Cyrine. The Mabrouk family is a
prominent Tunisian business family with business successes
that predate Marouene,s marriage into the Ben Ali family.
The Mabrouks hold shares in Banque de Tunisie and own major
confectionery companies, including Societe Tunisienne de
Chocolaterie and SOTUBI (biscuits). Marouene and Cyrine
established Planet Tunisie, the country's first private
Internet service provider. Marouene,s additional interests
include: Medis (Monoprix and Touta grocery chains); a major
shopping complex; Mercedes-Fiat dealership; Industries
Alimentaires de Tunisie; and Investment et Developpment
Mecanique. The greater Mabrouk family also has significant
holdings in oil services, the Compagnie de Promotion
Immobliere et Touristique, Compagnie des Golfs Internationaux
de Tunisie, Mediterraneene de Distribution et de Commerce,
Maghreb Invest, and Essanabel SMVDA.

IV. Extended "Family" Members
--------------

15. (C/NF) Hedi Djilani: Hedi Djilani, the current president
of the Tunisian Employers Association for Commerce, Industry,
and Handicrafts (UTICA, the national employers,
association),is one of the few Tunisians related (by

marriage) to both sides of the President's family. Djilani's
elder daughter is married to Belhassen Trabelsi; his younger
daughter is married to one of the President's nephews,
Sofiane Ben Ali. Djilani acquired his wealth initially by
inheritance, but has since acquired business interests
including Lee Cooper, Financiere Tunisienne, TISSBEL, Les
Pages Jaunes, Immobiliere Echarifa, Hygiene and Sante, MAT
SA, Manufacture Tunisienne d'Exploitation Industrielle,
Societe Connexion Trust, and Hannibal Lease. Djilani,s
brother, Lamine, is Assistant General Manager for the Middle
East and North Africa at Arab Banking Corporation, New York.


16. (C/NF) The Mzabi Family: This family has been associated
with Slim Chibboub and its family members include Sadok,
Mzoughi, Hedi, Fathi, and Najib. Their holdings are
numerous, including: Renault; SODEXHO (catering company);
Minoterie de la Soukra; Tanneries Megisseries du Maghreb;
Tannerie de la Mornaguia; Manufacture Tunisienne de
Chaussures; Societe Immobliere du Maghreb; Meghreb Motors;
Atlas Motors; Atlas Pompes; Ateliers Mecaniques Maghrebines;
Dalmas; COTTAM; Compagnie Tunisienne des Fournitures; Maghreb
Commercial; Royal Garden Palace; Palm Azur; Carthago Oil
Company of Tunisia; Land Rover; Societe d,Etude et
d,Exploitation Tourisitque; INFOCOM; Societe Arab Technic
Water; Societe Alliance Immobiliere; ARTES; AUTRONIC; Societe
Touristique Gibraltar; SOMET; and Sabrine (mineral water
company).

17. (C/NF) COMMENT: While the facts and rumors of the
Family's commercial holdings are extensive, few Tunisians can
offer any evidence of President Ben Ali's personal
corruption. In fact, public opinion is often more
sympathetic to the President than to the seemingly
ever-growing extended clan of brothers- and sons-in-law. A
popular joke tells of President Ben Ali being stopped by a
traffic cop when out for a drive by himself. Ben Ali
explains he is the President, Zine el Abidine Ben Ali, but
the cop says "Never heard of you," and takes Ben Ali to the
police station. The station chief looks at Ben Ali's
identification card and says, "It's okay. He's related to the
Trabelsis." The joke outlines what most Tunisians feel
today: compared to the strength and depth of the Trabelsi
family's grip on Tunisia, Ben Ali is inconsequential. While
this may be pure speculation or wishful thinking, the fact
remains that the alleged corruption of Ben Ali's family is
increasingly becoming a political and economic force that
must be addressed. END COMMENT.
HUDSON