VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #0194/01 0501507
ZNR UUUUU ZZH
R 191507Z FEB 08
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 2099
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000194 
 
SIPDIS 
 
STATE FOR WHA/CEN, EB/IFD/OIA, AND L/CID 
STATE ALSO FOR WHA/EPSC 
STATE PASS TO USTR 
TREASURY FOR INL AND OWH 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EINV ECON USTR KIDE NU
SUBJECT: NICARAGUA: AMCIT PROPERTY CLAIMS MONTHLY UPDATE: JANUARY 2008
 
REFS: A) 07 MANAGUA 2581 B) MANAGUA 173 
 
SUMMARY AND INTRODUCTION 
------------------------ 
 
¶1. In January of the 2007-2008 waiver year, the Government of 
Nicaragua dismissed 52 U.S. citizen claims via a dubious review 
process that determined claimants did not own the property that had 
been expropriated. The Embassy does not consider these 52 claims 
resolved and they remain active in our database.  A U.S. citizen 
claimant also withdrew six property claims after a local court 
foreclosed upon the properties.  The legal representative for the 
heirs of a deceased American citizen claimant informed us that the 
GON resolved a claim registered in the Embassy's Property Office 
database.  We have added a "Court Decision Against Claimant (Claim 
Withdrawn by Amcit)" section and a "Claims Dismissed by the GON" 
section to this report. 
 
¶2. Since January 1995, the GON has resolved 2,520 Embassy-registered property claims belonging to 658 American citizens (Amcits). With the resolution of one Embassy-registered claim and the withdrawal of six Embassy-registered claims, the Property Office database now includes 667 registered property claims belonging to 294 Amcits. Including Amcit claims not registered with the Embassy, the GON has resolved a total of 4,540 American citizen claims since January 1995. Most have involved compensation via government-issued indemnification bonds ("bonos de pago de indemnizacion" or BPIs). As of January 31, 2007, the GON had issued BPIs with a face value of $324,000,525 to Embassy-registered claimants. With the inclusion of the one claim compensated in January, the GON has resolved six cases during this waiver year.
 
EMBASSY REGISTERED CLAIMS DISMISSED BY GON 
------------------------------------------ 

¶3. On November 29, 2007, the GON presented the Property Office a list of 18 Embassy-registered claims it was considering dismissing primarily because of the lack of proof that the claimant owned property that had been expropriated (Ref A). On January 31, 2008, the GON reported that the 18 claims provided in November 2007 are indeed "dismissed" cases, and in addition provided a second list of 34 Embassy-registered "dismissed" claims so characterized because a) the claimant could not provide proof of ownership and/or expropriation of the property; b) the claimant already possessed the property (but still needed the title); or, c) the matter is being handled in court. Property Superintendent Yara Perez explained that claimants must either follow the administrative process or pursue the claim in court (Ref B).
 
¶4. It appears that the GON's currently preferred method to "resolve" 
Embassy-registered claims is "dismissal."  The Embassy does not 
recognize these dismissed claims as resolved at this time, and 
continues its efforts to contact and consult with affected claimants 
to ensure that their rights are protected.  Our Property Office also 
continues to press the GON for more cooperation on the resolution of 
property claims in a fair and transparent manner. 
 
EMBASSY REGISTERED CLAIMS WITHDRAWN BASED ON COURT DECISIONS
--------------------------------------------- ----- 
 
¶5. On January 30, 2008, Mr. Jose Arguello asked the Property Office 
to remove six Embassy-registered claims from our database after a 
local court ruled that the properties be foreclosed upon and 
transferred to a private bank.  Mr. Arguello has accepted the court 
decision and said that he will no longer pursue these claims. 
 
                       Type of            No. of 
Claimant               Property           Claims 
--------              ----------          ------ 

Arguello, Jose          land                 6 
 
 
EMBASSY-REGISTERED CLAIMS RESOLVED IN JANUARY 2008 
--------------------------------------------- ------ 
 
¶6. On February 6, 2008, Dr. Lino Meza Martinez, legal representative 
for the heirs of Mrs. Teodolinda Gonzalez-Becklin, provided a 
written statement to the Embassy Property Office attesting that on 
January 15, 2008, the GON had compensated Gonzalez-Becklin with 
indemnification bonds (BPIs) for a house in Managua.  The heirs of 
Mrs. Gonzalez-Becklin reached a settlement with the GON for BPIs 
with a face value of 1,035,600 cordobas, approximately $24,750.  We 
have updated our database to reflect this settlement. 
 
                     Type of     No. of    Type of 
Claimant             Claim       Claims    Resolution 
--------             -----       ------    ---------- 
 
Gonzalez-Becklin, 
Teodolinda           house          1         bonds 
 
 
STATUS OF AMCIT PROPERTY AS OF 01/31/07 
--------------------------------------- 

¶7.  The following is a snapshot of current American citizens' 
property claims.  The Embassy maintains separate databases for 
claims registered before and after the July 31, 2005, deadline in 
the Consolidated Appropriations Act. 
 
 
EMBASSY-REGISTERED CLAIMS                         NUMBER 
-------------------------                         ------ 

Total Amcits with all claims resolved                658 
  (145 were Amcits at time of confiscation) 
 
Total Amcits with pending claims                     294 
  (64 were Amcits at time of confiscation) 
 
Total Amcits registered with the Embassy           1,137 
  prior to July 31, 2005 
  (269 were Amcits at time of confiscation) 
 
Total Amcit claims pending resolution                667 
  (117 were claims of Amcits at time of confiscation) 
 
Total Amcit claims resolved                        2,520 
  (403 were claims of Amcits at time of confiscation) 
 
 
EMBASSY-REGISTERED CLAIMS BY CALENDAR YEAR NUMBER
------------------------------------------        ------ 

Claims resolved in calendar year 2008                  1 
  (0 were claims of Amcits at time of confiscation) 
 
Claims resolved in calendar year 2007                 10 
  (0 were claims of Amcits at time of confiscation) 
 
Claims resolved calendar year 2006                    81 
  (6 were claims of Amcits at time of confiscation) 
 
Claims resolved calendar year 2005                   126 
  (7 were claims of Amcits at time of confiscation) 
 
Claims resolved calendar year 2004                   218 
  (11 were claims of Amcits at time of confiscation) 
 
Claims resolved calendar year 2003                   243 
  (22 were claims of Amcits at time of confiscation) 
 
Claims resolved calendar year 2002                   125 
  (20 were claims of Amcits at time of confiscation) 
 
Claims resolved calendar year 2001                   175 
  (17 were claims of Amcits at time of confiscation) 
 
Claims resolved calendar year 2000                    70 
  (7 were claims of Amcits at time of confiscation) 
 
 
EMBASSY-REGISTERED CLAIMS RESOLVED BY WAIVER YEAR NUMBER
--------------------------------------------- ---- ------ 

Registered claims resolved so far in 2007-08           6 
  (waiver year: August 1, 2007 - July 31, 2008) 
 
Registered claims resolved 2006-07 waiver year        34 
 
Registered claims resolved 2005-06 waiver year        86 
 
Registered claims resolved 2004-05 waiver year       187 
 
Registered claims resolved 2003-04 waiver year       214 
 
Registered claims resolved 2002-03 waiver year       183 
 
Registered claims resolved 2001-02 waiver year       160 
 
Registered claims resolved 2000-01 waiver year       142 
 
Registered claims resolved 1999-00 waiver year        77 
 
Registered claims resolved 1998-99 waiver year       156 
 
Registered claims resolved 1997-98 waiver year       204 
 
Registered claims resolved 1996-97 waiver year       145 
 
 
EMBASSY-REGISTERED CLAIMS UNDER GON CONTROL NUMBER
-------------------------------------------       ------ 
 
Total Amcit properties under GON control              54 
  (subject to revision) 
 
GON-held claims resolved 2007-08 waiver year           0 
 
GON-held claims resolved 2006-07 waiver year           0 
 
GON-held claims resolved 2005-06 waiver year           3 
 
GON-held claims resolved 2004-05 waiver year          16 
 
GON-held claims resolved 2003-04 waiver year          12 
 
GON-held claims resolved 2002-03 waiver year          11 
 
GON-held claims resolved 2001-02 waiver year          26 
 
GON-held claims resolved 2000-01 waiver year           2 
 
GON-held claims resolved 1999-00 waiver year           2 
 
GON-held claims resolved 1998-99 waiver year           5 
 
GON-held claims resolved 1997-98 waiver year          29 
 
GON-held claims resolved (total)                     176 
 
 
CLAIMS DISMISSED BY GON DURING THE 2007-08 WAIVER YEAR NUMBER
------------------------------------------        ------ 

NOVEMBER 2007                                         18 
 
JANUARY 2008                                          34 
 
COURT DECISION IN FAVOR OF CLAIMANT 
(PROPERTIES RECOVERED)                            NUMBER 
--------------------------     ------ 

                                                     445 
 
COURT DECISION AGAINST CLAIMANT 
(CLAIM WITHDRAWN BY AMCIT)                        NUMBER 
-------------------------------                   ------ 

                                                       6 
 
TOTAL CLAIMS RESOLVED BY LAND SWAPS               NUMBER 
-----------------------------------               ------ 

                                                       6 
 
TOTAL CLAIMS COMPENSATED IN BONDS 
(face value of bonds $324.00 million)             NUMBER 
-------------------------------------              ----- 

                                                   1,857 
 
NON-REGISTERED RESOLUTIONS BY WAIVER YEAR NUMBER
-----------------------------------------         ------ 

Non-registered resolutions 2007-08 waiver year         0 
 
Non-registered resolutions 2006-07 waiver year        12 
 
Non-registered resolutions 2005-06 waiver year        30 
 
Non-registered resolutions 2004-05 waiver year         0 
 
Non-registered resolutions 2003-04 waiver year         6 
 
Non-registered resolutions 2002-03 waiver year        22 
 
Non-registered resolutions 2001-02 waiver year        93 
 
Non-registered resolutions 2000-01 waiver year       300 
 
Non-registered resolutions 1999-00 waiver year       455 
 
Non-registered resolutions 1998-99 waiver year       310 
 
Non-registered resolutions 1997-98 waiver year       230 
 
Non-registered resolutions 1996-97 waiver year       208 
 
 
TOTAL REGISTERED & NON-REGISTERED RESOLUTIONS NUMBER
---------------------------------------------     ------ 

Total number of Amcit claims resolved              4,540 
 
NON-WAIVER CLAIMS REGISTERED AFTER JULY 31, 2005 NUMBER
--------------------------------------------- ---  ------ 

Total Amcit claimants registered with Embassy         12 
(1 was an Amcit at time of confiscation) 
 
Total Amcit claims pending resolution                 18 
(1 was a claim of an Amcit at time of confiscation) 
 
TRIVELLI