ZABANEH FAMILY PURCHASES PRIVATE UNIVERSITY

C O N F I D E N T I A L BELMOPAN 000485 SIPDIS C O R R E C T E D C O P Y ADDED SIPDIS FOR WHA/CEN - J VANTRUMP E.O. 12958: DECL: 12/21/2019 TAGS: PREL PINR SOCI BH SUBJECT: ZABANEH FAMILY PURCHASES PRIVATE UNIVERSITY Classified By: DCM Diffily for reason 1.4(b) and (d) ¶1. (C) SUMMARY: In December 2009, Dr. Louis Zabaneh stunned the Belizean education community with his surprise acquisition of Galen University. The Zabaneh family is purportedly involved in a number of illicit activities including money laundering and drug smuggling. Over the last year, the family has made several large purchases including a regional airline (Maya Air),while allowing other businesses to fall into bankruptcy or foreclosure. The Zabanehs are rumored to have used family money, rather than only Dr. Zabaneh,s money for the purchase, thus tainting the transaction. END SUMMARY ¶2. (C) On December 16, 2009, the new Chairman and new Board of Trustees held a press conference in Belize City to officially announce the transfer of the university to Dr. Zabaneh. The first portion of the press conference included descriptions of Galen University,s programming and degrees followed by a question and answer period for the local media. ¶3. (C) The first reporter to ask a question was Jules Vasquez of Channel 7, Belize. Vasquez is known to the Embassy as an outspoken reporter who likes to ask challenging and controversial questions. Vasquez asked Dr. Zabaneh to &dispel rumors8 that Zabaneh was &fronting8 for someone. Dr. Zabaneh attempted to dismiss the question by joking that he was only &fronting8 for his wife, whom he then introduced. The reporter followed-up; however, by asking Dr. Zabaneh to describe the transactions that took place that would allow him to buy a university since it was ¬ every day that one hears that an individual buys a university.8 According to Embassy staff who attended the event, Dr. Zabaneh was visibly shaken by the questioning and tried to open the floor to other reporters. No other reporter present asked any further questions and the press conference abruptly ended with Dr. Zabaneh leaving early and not making any additional comments. Curiously, Vasquez, report of the press conference on Channel 7 was bland. ¶4. (C) Galen University is a private university founded by a team of foreign medical doctors in 2003. Located in the Cayo District of Belize, it has been growing its reputation as a solid research institution and has built successful academic partnerships with Indianapolis University. Galen University has many foreign faculty and often hosts U.S. students for study abroad while steadily expanding its student population base among Belizean students. There was no indication that the University was seeking a buyer or that it was in a position to need a buyer. ¶5. (C) Comment. Rumors of the Zabaneh family activities are unconfirmed by Post; however, most Belizean staff readily comment that the family is known as &drug runners8 who &have their hands in everything8 and allege that they buy businesses only to &run them into the ground.8 Embassy local staff question how an individual could receive funding to buy a university when he is the owner of one bankrupt business (DNL a fruit processing plant) and another undergoing foreclosure (Maya Food, a papaya export company). Post wonders if the University could be used to launder money or perhaps to move people into the U.S. on J and F visas. Post is informed that Dr. Zabaneh is the &outside child8 of Eugene Joseph Zabaneh (DOB 18MAY1945) and that his biological mother lives in the United States. Dr. Zabaneh was raised by his grandparents and did not become close to his father until he completed his studies in applied economics at Clemson University and returned to Belize to work with his father. End comment. Thummalapally