VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #2324/01 2881644
ZNR UUUUU ZZH
R 151644Z OCT 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 1495
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 002324 
 
SIPDIS 
 
STATE FOR WHA/CEN, EB/IFD/OIA AND L/CID 
STATE FOR WHA/EPSC 
STATE PLEASE PASS TO USTR 
TREASURY FOR INL AND OWH 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EINV ECON USTR KIDE NU
SUBJECT: ATTORNEY GENERAL TAKES LEAD ON PROPERTY CLAIMS 
 
REF: A) MANAGUA 2006 
 
SUMMARY 
------- 
 
¶1. (SBU) Government of Nicaragua (GON) officials told Econoffs in a 
September 27 monthly meeting on property issues that new 
administrative procedures for resolving property disputes formally 
incorporate Attorney General Estrada in the process.  They assert 
these revised procedures will streamline claims processing so that 
all cases may be resolved within the next two years.  GON officials 
also reported they would prioritize claims of those who were Amcits 
at the time their property was seized, complained that our registry 
includes many cases already resolved, and alleged that many Amcits 
had engaged in improprieties in pursuing compensation from the 
previous government.  For the first time during three working level 
meetings, participants also discussed several individual Amcit cases 
in detail.  End Summary. 
 
NEW GON PLAN TO RESOLVE PROPERTY DISPUTES 
----------------------------------------- 
 
¶2. (U) During the September 27 monthly working level meeting on 
property claims with Econoffs, Attorney General Hernan Estrada and 
newly-appointed Property Superintendent Yara Perez Calero, who 
replaced recently-fired Mireya Molina Torres (septel), described 
changes to the administrative procedures for resolving property 
claims.  Perez, following Estrada's brief introductory remarks and 
subsequent departure, suggested that these administrative changes 
would allow the GON to press forward with its plans to resolve all 
outstanding property claims within the next two years. 
 
¶3. (U) Perez explained that Presidential Decree 93-2000 issued in 
September 2007 reorganizes the Technical Assessment Council for the 
Assessment and Indemnification Office (DCI) and incorporates the 
Attorney General (or his delegate) and the president of the National 
Confiscation Review Commission (CNRC) as members.  The other members 
of the council are the director of the DCI, the head of the 
Cadastral Assessment Office, an executive secretary, and officials 
from the Ministry of Finance and Government Accounting Office.  The 
Attorney General will chair the council, which will be responsible 
for resolving property claims disputes and other related issues. 
Perez added that the presidential decree also creates a Technical 
Legal Committee chaired by the Attorney General, which reviews 
disputes that the Technical Assessment Council is unable to resolve. 
 
 
¶4. (U) Perez told Econoffs that the GON will close its notification 
office in the Nicaraguan Consulate in Miami, Florida, noting that 
claimants are legally required to provide a Nicaraguan address when 
they file a claim.  Perez said that closing the office would 
eliminate the unnecessary cost that the government incurs by 
maintaining this service in the United States. 
 
GON PUSHES FOR USG ACQUIESCENCE ON RECURRING ISSUES 
--------------------------------------------- ------ 
 
¶5. (SBU) Throughout the meeting, Perez sought USG acquiescence on a 
number of issues raised in last month's meeting, including GON 
prioritization of U.S.-born AmCits (Ref A).  Econoff reiterated that 
the United States does not differentiate between those who were 
citizens at the time of seizure and those who were not, and that we 
will continue to press for resolution of all Embassy registered 
cases.  Econoff also highlighted that Nicaraguan law establishes one 
procedure for the resolution of property cases, whether or not the 
claimant is Nicaraguan. 
 
¶6. (SBU) Perez alleged that some claimants had received double 
compensation, or at least more compensation then they should have, 
because they had overvalued their assets.  During a ten-minute 
monologue, she lambasted Amcit claimants for their immoral, 
unethical practices in collusion with corrupt officials of the 
former Bolanos government.  Econoff agreed that corruption of any 
kind should not be tolerated, but cautioned Perez against making 
broad generalizations about Amcit claimants.  He also asked her to 
share evidence she may have regarding such practices.  [Comment: GON 
officials previously notified us of six cases they allege involved 
fraud on the part of claimants.  Three of the cases were not 
registered with the Embassy, and the other three showed no evidence 
of fraud.  End Comment.] 
 
¶7. (SBU) Econoff told GON officials that there remain 677 
registered, unresolved property claims belonging to 295 American 
citizens.  He emphasized that the USG looks forward to working with 
the GON to resolve all pending claims in a fair and prompt manner. 
Econoff reminded GON officials of the Embassy's offer to facilitate 
communication with claimants to finalize 55 cases for which the GON 
claims to have prepared resolutions.  Perez said her staff would 
prepare a letter for Attorney General Estrada to sign detailing the 
55 cases so that these cases may move to final resolution. 
 
COMMENT 
------- 
 
¶8. (SBU) For the first time during three working level meetings, 
Econoffs and GON officials discussed specific cases.  Perez said 
that she and her staff would pay more attention to these and other 
Amcit claims.  Perez asserted, however, that communication on other 
cases should be delivered in writing to Estrada.  This procedure 
effectively makes our monthly meetings the only channel through 
which we can call attention to specific cases.  This approach stands 
in sharp contrast to the collegial, informal relationship between 
Econoffs and the GON during the Bolanos administration, when an 
average of 159 cases were resolved per calendar year.  The current 
government has resolved just seven cases in nine months.  We 
continue our efforts to establish day-to-day working relations with 
the Property Superintendent.  End Comment. 
 
BIOGRAPHIC INFORMATION: PROPERTY SUPERINTENDENT PEREZ 
--------------------------------------------- -------- 
 
¶9. (SBU) Ms. Yara Perez Calero is from Esteli, a northern Nicaraguan 
city, capital of the department which carries the same name, and an 
FSLN stronghold.  In previous GON administrations, she held a 
position similar to that of district attorney for the northern 
departments of Esteli, Jinotega, and Matagalpa.  In September 2006 
she was appointed as head of the Property Registry for the 
Department of Matagalpa.  After the inauguration of the Sandinista 
government in January 2007, Perez was appointed as Deputy Attorney 
General until assuming her current position.  In some local circles 
she is rumored to be a hardline Sandinista supporter. 
 
TRIVELLI