¶1. (S) According to Transparency International's annual survey and Embassy contacts' observations, corruption in
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
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.