From: <a href="http://www.aftenposten.no/spesial/wikileaksdokumenter/article3990437.ece">Aftenposten</a><br>
Date: 05.07.2006
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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 FAMILYS 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
corruptions impact on the Tunisian economy and Tunisias
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
Familys 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
Tunisias 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 Familys influence has
grown significantly and Tunisians anxiety about this has grown
proportionately.

3. (C) Ben Alis 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 siblings, 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 Familys financial interests involve a sharing or
spreading of wealth that has a geographic dimension: the First
Ladys side is believed to dominate the greater Tunis region;
the Presidents 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
Leilas growing influence and interests may at times conflict
with Ben Alis 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 Alis 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 Djilanis 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 MHiri; 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 dInternet 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 Alis family is
known to have active business interests, Tunisians complain
most bitterly about the Trabelsi familys 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 Leilas 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.
XXXXXs neighbor, XXXXX, identified three palatial dwellings
within 300 meters of XXXXX 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 buildings footprint,
generally forbidden by the Carthage historic areas 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
DEtudes et de Realisations Touristiques (COMMERT); Societe de
Promotion Touristique et de Plaisance; Societe DInvestissement
dans les Loisors et Tourism (SILT - SICAF); Alpha Bus Tunisie;
Societe dEtudes 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 Trabelsis 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 Egypts 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 lOpera 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
dExploitation des Eraux et de lEnvironment Services); Societe
Agricole Essania; and Societe Tunisienne dEmballage 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 countrys 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 Presidents family. Djilanis elder daughter is
married to Belhassen Trabelsi; his younger daughter is married
to one of the Presidents 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
dExploitation 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 Familys
commercial holdings are extensive, few Tunisians can offer any
evidence of President Ben Alis 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 Alis
identification card and says, "Its okay. Hes related to the
Trabelsis." The joke outlines what most Tunisians feel today:
compared to the strength and depth of the Trabelsi familys
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 Alis family is increasingly
becoming a political and economic force that must be
addressed. END COMMENT.

HUDSON
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