CABINET RESHUFFLE HIGHLIGHTS BEN ALI FOCUS ON

C O N F I D E N T I A L TUNIS 001224

SIPDIS

SIPDIS

STATE FOR NEA/MAG - HOPKINS, HARRIS

E.O. 12958: DECL: 09/04/2017
TAGS: PGOV PREL ETTC SOCI TS
SUBJECT: CABINET RESHUFFLE HIGHLIGHTS BEN ALI FOCUS ON
DOMESTIC AFFAIRS

REF: A. TUNIS 1171

B. TUNIS 313

Classified By: CDA MARC DESJARDINS FOR REASONS 1.4 (b) AND (d)

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SUMMARY
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1. (C) Following recent reshuffles of officials in the ruling
party and regional governors (Ref A),President Ben Ali made
a minor reshuffle to his cabinet on September 3. Five new
ministers were appointed (for Public Health; Tourism; Trade
and Handicrafts; Communications Technologies; and Women,
Family, Children and Elderly Affairs),along with three
deputy ministers. As is often the case, the change is
largely a reshuffle of portfolios among well known GOT
officials with one minister taking on new portfolios and
three deputy ministers being promoted. The change seems to
have been driven by the need for reform in Tunisia's public
health sector, which is notoriously underfunded and
understaffed, with other changes focused on the need for
economic development. Despite speculation that a major
reshuffle was in the works, the Prime Minister and the four
"sovereign" ministers (Foreign Affairs, Interior, Defense and
Justice) were unchanged. End Summary.


2. (U) On September 3, the Tunisia-Africa Press Agency (TAP)
announced that President Zine El Abidine Ben Ali appointed
five new ministers and three secretaries of state (deputy
ministers),as follows:

-- Mondher Zenaidi, Minister of Public Health
-- Ridha Touiti, Minister of Commerce and Handicrafts
-- Khelil Lajimi, Minister of Tourism
-- Haj Gley, Minister of Communication Technologies
-- Sarra Jarraya, Minister of Women, Family, Children and
Elderly Affairs
-- Abdelhamid Triki, Secretary of State for Development and
International Cooperation in charge of International
Cooperation and External Investment
-- Ahmed Dhouib, Secretary of State for Education and
Vocational Training
in charge of Vocational Training
-- Najoua Miladi, Secretary of State for Public Health
in charge of Hospital Establishments

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PUBLIC HEALTH
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3. (C) The dilapidated state of Tunisia' public health sector
seems to have been the impetus behind this cabinet reshuffle,
with the removal of both the minister (formerly Ridha
Kechrid) and the deputy minister (formerly Neziha Escheikh).
While public health is free, most Tunisians agree that the
sector is woefully underfunded and understaffed. In recent
years, Tunisia's private health sector has boomed, and a
medical tourism sector has even developed (Ref B). But those
unable to afford private care are forced to wait for extended
periods to receive care in decades-old public hospitals that
lack modern equipment and supplies. New minister Zenaidi was
most recently minister of Commerce and Handicrafts and will
be tasked with revitalizing a sector that was once the pride
of Tunisia. However, ongoing budget constraints,
particularly in light of record oil prices, means Zenaidi
will be hard pressed to address the lack of funding that is a
fundamental challenge to the public health sector. He is the
first Minister of Public Health who is not a doctor by
profession and is expected to bring some much needed
management expertise to the Ministry. Zenaidi has been a
minister for over 13 years, at Tourism, Commerce and
Handicrafts (in various configurations) since 1995 and
Minister of Transport (1994-95). Born in 1950, he has been a
public official since graduating from university in 1977 and
is also a member of the ruling Democratic Constitutional
Rally (RCD).

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COMMERCE
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4. (C) Zenaidi's departure from the Ministry of Commerce and
Handicrafts is unlikely to indicate plans for increased
economic liberalization, as he was replaced by long-time
public servant Ridha Touiti. In fact Touiti, born in 1950,
is believed to be a Zenaidi protege. He held lower-ranking
positions in the ministries of industry, economy and commerce
for over twenty years before a brief stint in the private
sector in 2006. While his impact on the US-Tunisia trade

relationship remains to be seen, those who know Touiti say he
has not historically been in favor of liberalization.
Rather, he is known to be a controlling proponent of
socialist policies.

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COMMUNICATIONS TECHNOLOGIES
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5. (C) Haj Gley, a former Chief of Staff to the Minister of
Communications and most recently the Director General of the
Post Office, replaced Montassar Ouaili, who oversaw Tunisia's
hosting of the 2005 UN World Summit on the Information
Society. Ouaili had been expected to depart when his
(ultimately unsuccessful) bid for ITU Secretary General was
announced in 2006. His recent departure follows a major
reshuffle in the state-owned communications industry
(including television and radio),and Gley's appointment is
likely hoped to spur increased investment in Tunisia's IT
sector. Despite GOT hopes of becoming a regional IT power,
the sector has not grown as expected. Yet Gley, who is 53
and has limited IT experience, does not seem to have the
dynamism of Ouaili, an extroverted and knowledgeable UCLA
graduate. It is unclear if Gley is likely to move forward
with plans Ouaili had announced for several telecom
developments on the horizon, including the introduction of a
second fixed line and third mobile license, and the sale of
the remaining GOT stake in Tunisie Telecom.

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WOMEN, ETC.
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6. (C) Despite its wide mandate, this minister is widely
believed to serve at the discretion of First Lady Leila Ben
Ali. While other ministers may deliver speeches on behalf of
President, Leila Ben Ali is the public face of most social
issues related to women and children. The appointment of
Jarraya, who was formerly the deputy minister, suggests that
former minister Saloua Ayachi Labben had some sort of falling
out with the First Lady. Jarraya, a doctor born in 1948, has
years of experience working on social issues in Tunisia as
well as in international fora.

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TOURISM
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7. (C) Given the recent strong performance of Tunisia's
tourism sector (which generates a fifth of hard currency
reserves),the removal of former minister Tijani Haddad is
somewhat of a surprise. However, the appointment of former
Secretary of State for International Cooperation Khelil

SIPDIS
Lajimi is unlikely to change the orientation of Tunisia's
tourism sector. Lajimi has a strong background in economics
and industry and should bring a fresh eye to promoting
Tunisian tourism. His appointment may be another indication
of Ben Ali's efforts to energize his cabinet by injecting
younger (Lajimi is 44),more dynamic officials.

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COMMENT
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8. (C) Given the glacial pace of reform in Tunisia, it is
unlikely that any of these officials will have a significant
impact on the involved ministries or the US-Tunisia bilateral
relationship. Further, many observers opine that the real
power in the GOT lies with the "shadow cabinet" at the
Presidential Palace in Carthage. This is particularly true
at those ministries (including all of those with new
ministers) that the GOT considers to be "technical" rather
than "political". Notably absent in the reshuffle were the
four "sovereign ministries" (Foreign Affairs, Interior,
Defense and Justice),although some observers had suggested
FM Abdallah might be appointed Prime Minister. Despite eight
years on the job and a stated desire to step down, there are
few indications that Prime Minister Mohamed Ghannouchi,
perhaps one of the most respected GOT officials on the scene,
is on his way out. End Comment.
DESJARDINS