BEN ALI'S SON-IN-LAW SAKHR EL-MATRI: A RISING

S E C R E T TUNIS 000108 NOFORN SIPDIS NEA/FO (HKALMBACH, OBLAIR) NEA/MAG (SWILLIAMS,JPATTERSON,MHAYES) INR (TKING) E.O. 12958: DECL: 02/20/2019 TAGS: PGOV PREL PINR TS SUBJECT: BEN ALI'S SON-IN-LAW SAKHR EL-MATRI: A RISING FORCE IN TUNISIA (C-NE8-01892) REF: A. 08 STATE 97689 ¶B. 08 TUNIS 847 Classified By: Ambassador Robert F. Godec for reasons 1.4 (b) and (d) ¶1. (S/NF) Mohamed Sakhr El-Matri, the President's son-in-law, is viewed by many as a possible successor to President Ben Ali. Ref B reported his election to the ruling Constitutional Democratic Rally (RCD) party's Central Committee in July 2008. Since his election to the Central Committee, however, he has not played up his political role. He is also the head of the RCD's local organization in Carthage. Some observers here speculated that the Ben Ali family has instructed him to keep a low profile until after Ben Ali's expected re-election in October 2009. Instead, he has continued to focus on economic issues and expand his business empire, including pursuing opening a religious-themed TV station and a new Islamic bank both named Zeitouna, building on his Quranic radio station. -------------- Bilateral Relations -------------- ¶2. (S/NF) The Ambassador met with El-Matri February 2, and found him willing to comment frankly on US-Tunisian relations and other issues. El-Matri said that, although bilateral relations are excellent, there are times when communication could be better. He mentioned that some GOT officials had fixed views that were difficult to change and that it was important for the RCD and the government to bring younger people into the party and the government. He suggested that new channels of communication need to be developed and specifically cited the new RCD Secretary General Mohamed Ghariani. He also acknowledged that Tunisia needs to improve its performance on human rights. ¶3. (S/NF) On economic and trade issues, El-Matri expressed concern about the economic crisis, saying he was traveling to Dubai to discuss Emirate investment projects in Tunisia. (Note: SAMA Dubai recently withdrew its Tunisian representative and their real estate development projects are reportedly on hold indefinitely.) He appreciated the work the Embassy had done to promote the US Generalized System of Preferences program and said he would ask the President of the employer's union UTICA to continue to publicize the program and its benefits. El-Matri also expressed interest in opening a McDonalds restaurant franchise. When the Ambassador said US companies needed a franchise law before investing, he responded, "that would not be a problem," and suggested a likely first option would be to open a franchise in the new cruise port he is developing in La Goulette. El-Matri said he is working with a British bank to secure funding for his port expansion project. He also received permission from the Central Bank at the end of January 2009 to open an Islamic bank. -------------- Personality and Family -------------- ¶4. (S/NF) Personally, El-Matri presented himself as self-confident, but low-key. This was in marked contrast to his reputation as a flamboyant and aggressive business mogul. His reputation derives in part from the fact that he drives an Austin Martin and a Hummer among other cars, and rumors that he owns a pet tiger. With the Ambassador, he was equally comfortable talking about political issues and personal issues. He indicated his awareness of his relative youth vis-a-vis his position in the RCD and his business success, but did not seem uncomfortable with that reality. He also discussed his wife Nesrine's commitment to using only organic products from the food they eat to the paint and varnish in their new mansion. ¶5. (C) With Tunisians, Sakhr El-Matri gets political credibility from his own family as well as by being the President's son-in-law. His grandfather, Dr. Mahmoud El-Matri, was a famous activist in the nationalist movement of the 1930s. His father was a military officer and was sentenced to life imprisonment for an attempted coup against Bourguiba in 1962. He was later pardoned by Bourguiba and is now a member of the Chamber of Advisors. Sakhr El-Matri and his father recently opened a shelter for cancer patients. The El-Matri family is also prominent in business. ¶6. (C) El-Matri asked to work with the Embassy on the conservation of the cliff on which both the Ambassador's residence and his new mansion sit side-by-side. The Ambassador offered to share with him the Embassy's assessment of the cliff's stability. -------------- Indicators of Sakhr El-Matri's Influence -------------- ¶7. (S/NF) Although Sakhr El-Matri holds two political positions as a member of the RCD Central Committee and the head of the RCD local organization in Carthage in the last year, he has not used these positions to raise political issues or his own profile. Given his relative youth and newness to the political game, some say he was put in these positions as a chance to establish his credentials and to build networks rather than to raise his public profile. Others speculate that his family has told him to keep a low profile until after the 2009 presidential elections. He was given a prominent position on the podium with President Ben Ali during Ben Ali' annual November 7 speech celebrating his takeover from Bourguiba. Only one other of Ben Ali's four sons-in-law was also on the stage, Marouane Mabrouk. The El-Matri family also hosted Libyan leader Muammar al-Qadhafi during his August 2008 visit to Tunisia and it was reported that El-Matri traveled to Libya to meet with al-Qadhafi beforehand. In addition to his Goulette Shipping Cruise line, El-Matri controls under the Princess El-Materi holding company the concessions for Audi, Volkswagen, Porsche, Renault cars and trucks; a pharmaceutical manufacturing company, Societe Adwia; and two real estate companies, Les Hirondelles and Le Marchand de l'Immobilier. (Note: The el-Materi holding company is spelled differently than the family name.) -------------- Comment -------------- ¶8. (S/NF) Sakhr El-Matri comes across as someone who is in no rush but who is building his future both within the RCD and directly with the people through his Islamic radio and future bank. Unfortunately, along with his business dealings come a raft of rumors about corruption that make people cynical about his political intentions. At the very least, his business ventures thus far would not have been possible were it not for his close ties to President Ben Ali the First Tunisian family. Godec