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