VZCZCXYZ0002
RR RUEHWEB

DE RUEHMU #0552/01 1541658
ZNR UUUUU ZZH
R 031658Z JUN 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 4197
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000552 
 
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: MAY 2009
 
SUMMARY 
------- 

¶1. In May 2009, the Government of Nicaragua (GON) reported the 
resolution of seven Embassy registered property claims.  There 
remain 592 unresolved registered property claims belonging to 284 
U.S. citizens in the Embassy's database.  To date, the overwhelming 
majority of resolutions have involved compensation via 
government-issued indemnification bonds ("bonos de pago de 
indemnizacion" or BPIs).  As of May 31, 2009, the GON had issued 
BPIs with a face value of $339,755,164.59 to Embassy-registered 
claimants.  Since taking office in January 2007, the Ortega 
administration has resolved 81 claims, thirty-four of which during 
the 2008-2009 waiver year. 
 
EMBASSY REGISTERED CLAIMS RESOLVED IN MAY 
------------------------------------------- 

¶2. On May 12, 2009, the Attorney General's Office provided the 
Embassy a copy of the final settlement document stating that U.S. 
citizen Maximo Alejandro Blanco had decided to settle his claim 
through BPIs on April 29, 2009.  On May 14, Mr. Blanco told the 
Embassy Property Office that he had settled his claim by accepting 
BPIs deposited in escrow at the Ministry of Finance.  Mr. Blanco 
received BPIs worth 356,600 cordobas, approximately $17,605.  We 
have updated our database to reflect this settlement. 
 
                     Type of     No. of    Type of 
Claimant             Claim       Claims    Resolution 
--------             -------     ------    ---------- 
Maximo A. Blanco      House   1  bonds 
 
¶3. On May 12, 2009, the Attorney General's Office provided the Embassy a copy of the final settlement document or "finiquito" signed by the legal representative of U.S. citizen Norman Bonen-Castellon on May 5, 2009. The Castellon Estate received BPIs worth 442,200 cordobas, approximately $21,831. We have updated our database to reflect this settlement.
 
                     Type of     No. of    Type of 
Claimant             Claim       Claims    Resolution 
--------             -------     ------    ---------- 
Castellon Estate      Land   1  bonds 
 
¶4. On May 25, 2009, the Attorney General's Office provided the Embassy a copy of the finiquito signed by U.S. citizen Rina Cuadra on May 15, 2009. Mrs. Cuadra received BPIs worth 6,086,700 cordobas, approximately $300,496. We have updated our database to reflect this settlement. Mrs. Cuadra's claims had been previously dismissed by GON based on Decree 38 (1979) in 2008. Decree 38 authorized the GON to confiscate property belonging to "allies" of the Somoza family.
 
                     Type of     No. of    Type of 
Claimant             Claim       Claims    Resolution 
--------             -------     ------    ---------- 
Rina Cuadra       Land   2  bonds 
 
¶5. On May 14, 2009, the Attorney General's Office provided the Embassy a copy of the finiquito signed by U.S. citizen Roberto Velez on May 12, 2009. Mr. Velez received BPIs worth 1,817,600 cordobas, approximately $89,733. We have updated our database to reflect this settlement.
 
                     Type of     No. of    Type of 
Claimant             Claim       Claims    Resolution 
--------             -------     ------    ---------- 
Roberto Velez       House   1  bonds 
 
 
¶6. On May 25, 2009, the Attorney General's Office provided the Embassy a copy of the finiquito signed by the legal representative of U.S. citizen Francisco Zuniga on May 20, 2009. Mr. Zuniga received BPIs worth 1,721,000 cordobas, approximately $84,964. We have updated our database to reflect this settlement. Mr. Zuniga's claim had been previously dismissed by GON based on Decree 3(1979) in 2008. Decree 3 authorized the GON to confiscate property belonging to the Somoza family, the National Guard, and government officials.
 
                     Type of     No. of    Type of 
Claimant             Claim       Claims    Resolution 
--------             -------     ------    ---------- 
Francisco Zuniga     House and   2  bonds 
                     Check 
 
 
STATUS OF AMCIT PROPERTY AS OF 05/31/09 
--------------------------------------- 
 
¶7. The following is a snapshot of current U.S. citizen 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 pending claims                     284 
 
Total Amcit claims pending resolution                592 
 
 
EMBASSY-REGISTERED CLAIMS BY CALENDAR YEAR        NUMBER 
------------------------------------------        ------ 
Claims resolved calendar year 2009                    24 
 
Claims resolved calendar year 2008                    47 
 
Claims resolved calendar year 2007                    10 
 
Claims resolved calendar year 2006                    81 
 
Claims resolved calendar year 2005                   126 
 
Claims resolved calendar year 2004                   218 
 
Claims resolved calendar year 2003                   243 
 
Claims resolved calendar year 2002                   125 
 
Claims resolved calendar year 2001                   175 
 
Claims resolved calendar year 2000                    70 
 
 
EMBASSY-REGISTERED CLAIMS RESOLVED BY WAIVER YEAR NUMBER 
--------------------------------------------- ---- ------ 
Registered claims resolved so far in 2008-09          34 
  (waiver year: July 29, 2008 - July 29, 2009) 
 
Registered claims resolved 2007-08 waiver year        42 
 
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              51 
  (subject to revision) 
 
GON-held claims resolved 2008-09 waiver year           3 
 
GON-held claims resolved 2007-08 waiver year           1 
 
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)                     177 
 
 
CLAIMS DISMISSED BY GON                           NUMBER 
-----------------------                           ------ 
 
MARCH 2008                                            73 
 
FEBRUARY 2008                                         21 
 
JANUARY 2008                                          34 
 
NOVEMBER 2007                                         18 
                                                   ----- 
TOTAL                                                146 
 
DISMISSED CLAIMS LATER RESOLVED IN FAVOR OF U.S. 
CLAIMANT                                          NUMBER 
--------------------------------------------- --  ------ 
MARCH 2009         3 
 
APRIL 2009         5 
 
MAY 2009          4 
 
 
OTHER CATEGORIES TRACKED                          NUMBER 
------------------------                          ------ 
DECISION AGAINST U.S. CLAIMANT IN COURT                9 
 
(CLAIM WITHDRAWN BY AMCIT) 
 
CLAIMS WITHDRAWN BY AMCITS                             1 
      (PROPERTY UNDER AMCIT CONTROL) 
 
 
CLAIMS WITHDRAWN BY AMCITS FOR                 1 
LACK OF SUPPORTING DOCUMENTS 
 
 
TOTAL CLAIMS RESOLVED BY LAND SWAPS                    7 
 
 
TOTAL CLAIMS COMPENSATED VIA BONDS                 1,923 
(face value of bonds $339.7 million) 
 
 
NON-REGISTERED RESOLUTIONS BY WAIVER YEAR         NUMBER 
-----------------------------------------         ------ 
Non-registered resolutions 2008-09 waiver year         0 
 
Non-registered resolutions 2007-08 waiver year         6 
 
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 
 
 
NON-WAIVER CLAIMS REGISTERED AFTER JULY 31, 2005  NUMBER 
--------------------------------------------- ---  ------ 
Total Amcit claimants registered with Embassy         15 
 
Total Amcit claims pending resolution                 21 
 
 
NON-WAIVER CLAIMS RESOLVED BY CALENDAR YEAR       NUMBER 
------------------------------------------        ------ 
Claims resolved in calendar year 2008                 1 
 
Claims resolved in calendar year 2009                 1 
 
CALLAHAN