¶1. (S) According to Transparency International's annual survey and Embassy contacts' observations, corruption in Tunisia is getting worse. Whether it's cash, services, land, property, or yes, even your yacht, President Ben Ali's family is rumored to covet it and reportedly gets what it wants. Beyond the stories of the First Family's shady dealings, Tunisians report encountering low-level corruption as well in interactions with the police, customs, and a variety of government ministries. The economic impact is clear, with Tunisian investors -- fearing the long-arm of "the Family" -- forgoing new investments, keeping domestic investment rates low and unemployment high (Refs G, H). These persistent rumors of corruption, coupled with rising inflation and continued unemployment, have helped to fuel frustration with the GOT and have contributed to recent protests in southwestern Tunisia (Ref A). With those at the top believed to be the worst offenders, and likely to remain in power, there are no checks in the system. End Summary.
The Sky's the Limit
¶2. (C) According to Transparency International's 2007 index, the perception is that corruption in Tunisia is getting worse. Tunisia's ranking on the index dropped from 43 in 2005 to 61 in 2007 (out of 179 countries) with a score of 4.2 (with 1 the most corrupt and 10 the least corrupt). Although corruption is hard to verify and even more difficult to quantify, our contacts all agree that the situation is headed in the wrong direction. When asked whether he thought corruption was better, worse, or the same, XXXXXXXXXXXX exclaimed in exasperation, "Of course it's getting worse!"He stated that corruption could not but increase as the culprits looked for more and more opportunities. Joking about Tunisia'srising inflation, he said that even the cost of bribes was up. "A traffic stop used to cost you 20 dinars and now it's up to 40 or 50!"
All in the Family
¶3. (S) President Ben Ali's extended family is often cited as the nexus of Tunisian corruption. Often referred to as a quasi-mafia, an oblique mention of "the Family" is enough to indicate which family you mean. Seemingly half of the Tunisian business community can claim a Ben Ali connection through marriage, and many of these relations are reported to have made the most of their lineage. Ben Ali's wife, Leila Ben Ali, and her extended family -- the Trabelsis -- provoke the greatest ire from Tunisians. Along with the numerous allegations of Trabelsi corruption are often barbs about their lack of education, low social status, and conspicuous consumption. While some of the complaints about the Trabelsi clan seem to emanate from a disdain for their nouveau riche inclinations, Tunisians also argue that the Trabelsis strong arm tactics and flagrant abuse of the system make them easy to hate. Leila's brother Belhassen Trabelsi is the most notorious family member and is rumored to have been involved in a wide-range of corrupt schemes from the recent Banque de Tunisie board shakeup (Ref B) to property expropriation and extortion of bribes. Leaving the question of their progenitor aside, Belhassen Trabelsi's holdings are extensive and include an airline, several hotels, one of Tunisia's two private radio stations, car assembly plants, Ford distribution, a real estate development company, and the list goes on. (See Ref K for a more extensive list of his holdings.) Yet, Belhassen is only one of Leila's ten known siblings, each with their own children. Among this large extended family, Leila's brother Moncef and nephew Imed are also particularly important economic actors.
¶4. (S/NF) The President is often given a pass, with many Tunisians arguing that he is being used by the Trabelsi clan and is unaware of their shady dealings. XXXXXXXXXXXX a strong supporter of the government and member of XXXXXXXXXXXX, told the Ambassador that the problem is not Ben Ali, but "the Family" going too far and breaking the rules. Nevertheless, it is hard to believe Ben Ali is not aware, at least generally, of the growing corruption problem. This might also reflect the seeming geographical divisions between the Ben Ali and Trabelsi fiefdoms, with the Ben Ali clan reportedly focused on the central coastal regional and the Trabelsi clan operating out of the greater Tunis area and therefore, generating the bulk of the gossip. The Ben Ali side of the Family and his children and in-laws from his first marriage are also implicated in a number of stories. Ben Ali has seven siblings, of which his late brother Moncef was a known drug trafficker, sentenced in absentia to 10 years prison in the French courts. Ben Ali has three children with his first wife Naima Kefi: Ghaouna, Dorsaf and Cyrine. They are married respectively to Slim Zarrouk, Slim Chiboub, and Marouane Mabrouk -- all significant economic powers.
This Land is Your Land, This Land is My Land
¶5. (S/NF) With real estate development booming and land prices on the rise, owning property or land in the right location can either be a windfall or a one-way ticket to expropriation. In summer 2007, Leila Ben Ali received a desirable tract of land in Carthage for free from the GOT in order to build the for-profit Carthage International School (Ref F). In addition to the land, the school received a 1.8 million dinar (US $1.5 million) gift from the GOT, and within a matter of weeks the GOT had built new roads and stoplights to facilitate school access. It has been reported that Ms. Ben Ali has sold the Carthage International School to Belgian investors, but the Belgian Embassy has as yet been unable to confirm or discount the rumor. XXXXXXXXXXXX asserted that the school was indeed sold for a huge, but undisclosed sum.He noted any such sale would be pure profit since Ms. Ben Ali's received land, infrastructure, and a hefty bonus at no cost.
Next: Mob Rule