VZCZCXYZ0016
RR RUEHWEB

DE RUEHBE #0485 3561743
ZNY CCCCC ZZH (CCY AD00AA69 MSI8425-695)
R 221743Z DEC 09 ZDS
FM AMEMBASSY BELMOPAN
TO SECSTATE WASHDC 2189

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