VZCZCXYZ0001
RR RUEHWEB

DE RUEHMU #0235/01 0641533
ZNR UUUUU ZZH
R 051533Z MAR 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 3830
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000235 
 
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 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EINV ECON USTR KIDE NU
SUBJECT: NICARAGUA: LAND INVASIONS AFFECT U.S. CITIZENS 
 
REF: 08 MANAGUA 698 
 
SUMMARY 
------- 

¶1. (SBU) Since November 2008, 12 U.S. citizen landowners have 
contacted us to seek assistance in dealing with land invasions that 
they believe are either orchestrated or indirectly supported by the 
GON.  Individuals or groups related to the Sandinista National 
Liberation Front (FSLN) have been directly involved in some 
invasions.  President Daniel Ortega has been sending mixed messages 
on property rights.  On the one hand, he has ordered the Nicaraguan 
National Police not to remove squatters; on other hand, he has said 
that his government will not tolerate land invasions.  As more U.S. 
proprietors encounter problems with land invasions, many are looking 
to leave.  End Summary. 
 
GON GOING AFTER U.S. PROPERTY 
----------------------------- 

¶2. (SBU) Since November 2008, 12 U.S. citizen landowners have 
contacted us to seek assistance in dealing with land invasions that 
they believe are either orchestrated or indirectly supported by the 
GON.  Several U.S. proprietors think that the government is sending 
squatters to force a sale or a transfer of the property. 
Individuals or groups affiliated with the FSLN, such as the Citizen 
Power Councils (CPCs), have been directly involved in some of the 
land invasions.  FSLN involvement almost always freezes any kind of 
a response by local law enforcement officials.  In March 2008, for 
example, U.S. citizen Rex Bennett reported that he filed a lawsuit 
against Diomedes Diaz, reportedly an FSLN land trafficker, who took 
Mr. Bennett's property in the Department of Carazo at gunpoint 
(reftel).  The Carazo District Court has yet to consider the case 
while some municipal officials have hinted at bribes before 
involving themselves. 
 
¶3. (SBU) In another case, a local CPC organized squatters to invade 
the property of U.S. citizen Maria Violeta Gonzalez (reftel).  She 
told us that when she met with Attorney General Hernan Estrada on 
November 3, 2008, he said that there was not anything he could do. 
Later that week, however, an FSLN official contacted her to 
negotiate a cash settlement on behalf of the squatters. 
 
 
MIXED MESSAGES FROM ORTEGA 
-------------------------- 

¶4. (SBU) In the meantime, President Ortega has been sending mixed 
messages.  On the one hand, he orders law enforcement officials not 
to remove squatters.  On May 1, 2007, for instance, he ordered the 
police not to remove squatters, "even when a judge issues an 
eviction order."  On June 28, 2008, he stated that "property owners 
should seek bonds as compensation when squatters refuse to leave." 
Donald Gordillo (please protect), a U.S. citizen claimant who has 
two court orders to remove squatters from his property, reports that 
Sandinista Supreme Court Justice Rafael Solis told him that no judge 
would approve the eviction of squatters in the run-up to the 
November 9, 2008, municipal elections; anybody attempting to remove 
the squatters would be arrested.  On the other hand, Ortega said in 
a meeting with private industry on October 7, 2008, that he would 
not tolerate land invasions, a commitment reaffirmed by Attorney 
General Estrada.  When pressed to take action, however, Estrada 
defers to the courts and law enforcement officials. 
 
SUMMARY OF RECENT LAND INVASIONS 
-------------------------------- 

¶7. (U) Following is a summary often of the twelve recent land 
invasions against U.S. citizen property that we are monitoring.  We 
are still collecting information on two other land invasions, 
 
NEVARDO ARGUELLO 
---------------- 

In early November 2008, 50 squatters invaded Nevardo Arguello's 
470-acre property located near Managua.  They cut trees to build 
shacks and other facilities.  Mr. Arguello had filed a suit to have 
the agrarian reform title issued in 1987 for 273 acres of his 
property declared illegal since the new owner never took possession 
of the property as required by law. 
 
AURA BETETA 
----------- 

On December 16, 2008, Mrs. Beteta reported that five men invaded her 
property in Managua.  She believes that this group is linked to the 
FSLN.  Mrs. Beteta said she contacted Bayardo Arce, Economic Advisor 
to President Ortega, to help in removing the men from the property. 
 
 
STEVEN SALK 
----------- 

On December 22, 2008, Dr. Salk (nephew of Jonas Salk of the polio 
vaccine) reported that a group of armed individuals invaded his farm 
in Granada near the Mombacho National Park.  He has owned the farm 
since 1990 but spends most of his time in California.  Dr. Salk 
believes that he has good relations with the community because he 
provides milk and bread to local schools.  The armed squatters, 
claiming to be Sandinistas acting with the approval of the GON, 
forced the groundskeeper to leave so they could take control of the 
property.  Believing that the GON was sensitive to negative 
publicity about the investment climate, Dr. Salk instructed his 
lawyer to go public about the land invasion.  The result has been 
that the police seem more willing to act, though the judge has still 
not issued an eviction order.  Dr. Salk has come to believe that the 
judge and some municipal officials are involved in a 
land-trafficking mafia. 
 
LYDIA HERDOCIA 
-------------- 

On December 26, 2008, 150 squatters invaded the 1.73 acre property 
of Ms. Herdocia's family in the city of Leon.  Ms. Herdocia 
understands that the squatters are composed of members of the local 
CPC.  Ms. Herdocia has contacted the police on several occasions to 
request the removal of the squatters, but the police will not act 
without an eviction order from the court.  The squatters have built 
shacks, cement walls, and small structures on the property.  On 
January 27, 2008, Mayor of Leon Manuel Calderon (FSLN) pledged to 
help the Herdocia family. 
 
TERAN ICAZA FAMILY 
------------------ 

On January 16, three sisters of the Teran Icaza family reported that 
a group of squatters invaded their property in Salinas Grandes, a 
town located in the department of Leon in western Nicaragua.  The 
Attorney General's Office claims that the property is owned by the 
state.  The squatters claim ownership based on titles issued by the 
municipality and have attempted to sell undeveloped lots to 
interested buyers.  The family has filed suit against the 
municipality.  The police will not remove anybody from the property 
until the court clarifies who is the legitimate owner. 
 
ABOHASSEN FAMILY 
---------------- 

On January 21, the Abohassen family contacted the Embassy to report 
squatters on their property outside the city of Leon.  The 
Abohassens have been in a longstanding dispute with the Nicaraguan 
Army over ownership of 100 acres of land.  The family believes that 
the Army and the municipality are behind the invasions.  The 
Abohassens have filed a suit to defend their rights but are willing 
to negotiate to find a solution.  The Embassy has written several 
letters to request a meeting for the Abohassen family with 
Nicaraguan military officials.  The Army has not responded to our 
letters. 
 
MIGUEL ANGEL ARGUELLO 
--------------------- 

On January 23, Mr. Arguello requested Embassy assistance for his 
property dispute with the GON over beachfront property in Tola 
Municipality and land invasions.  Mr. Arguello has filed a lawsuit 
against the Attorney General's Office because it registered 70 
manzanas (121 acres) of his property as state-owned land.  In late 
December 2008, several families with agrarian reform titles issued 
by Property Superintendant Yara Perez began to take over his 
property.  Mr. Arguello believes the GON is orchestrating these 
invasions. 
 
JOSE WONG 
--------- 

On January 27, Mr. Wong contacted the Embassy's Property Office to 
seek our assistance in helping remove squatters who invaded his 
property in Chinandega, a city in western Nicaragua.  Mr. Wong said 
the squatters have destroyed certain areas of his property and 
threatened his family.  He has filed complaints with municipal 
officials and the police, but he has not received any assistance. 
Mr. Wong believes that the squatters are affiliated with the FSLN. 
 
OSCAR LOPEZ 
----------- 

On February 6, Mr. Lopez reported that the GON may be assisting a 
group of squatters with whom he has had ongoing problems since 
January 2008.  On February 2, he observed surveyors from the Office 
of the Property Superintendant measuring his land and fears that the 
GON will grant illegal titles to the squatters.  To resolve this 
matter and avoid further problems, Mr. Lopez said he is willing to 
relocate the squatters to another area and give them titles, but he 
would prefer that the GON remove them. 

MOHAMMED SHAFEEK 
---------------- 

On February 13, Mr. Shafeek reported that squatters had invaded his 
property in Managua.  The squatters claimed ownership of the 
property based on agrarian reform titles issued by the Office of the 
Property Superintendant.  Mr. Shafeek is seeking a court order to 
remove the squatters. 
 
COMMENT 
------- 

¶9. (SBU) Several U.S. landowners believe that the government is 
acquiring prime real estate by sending squatters to force a sale or 
a transfer of the property.  They assert that President Ortega is on 
the hook with political supporters throughout the country to deliver 
on promises of land.  However, it may be the case that individuals 
or groups affiliated with the FSLN are acting on their own 
initiative without taking instructions from Ortega.  As more U.S. 
citizens encounter problems protecting their properties against land 
invasions, many look to sell and leave the country.  Despite 
assertions that the GON is doing all it can to defend property 
rights, few officials seem willing to take action.  The fact that 
the FSLN has prevailed in the municipal elections and controls most 
committees in the National Assembly only seems to have made matters 
worse.  The FSLN is filling the power vacuum and the checks and 
balances are disappearing.  End Summary. 
 
CALLAHAN