Cablegate: Nicaragua: Amcit Property Claims Monthly Update: September

VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #0976/01 2812025
ZNR UUUUU ZZH
R 082025Z OCT 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 4628
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000976

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: SEPTEMBER
2009

REF: 01 MANAGUA 4134

SUMMARY
-------

1. In September 2009, the Government of Nicaragua (GON) reported the
resolution of five Embassy registered property claims. Three
claimants also withdrew a total of six claims from 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 September 30,
2009, the GON had issued BPIs with a face value of $359,823,109 to
Embassy-registered claimants. Since taking office in January 2007,
the Ortega administration has resolved 101 claims, six during the
2009-2010 waiver year.

EMBASSY REGISTERED CLAIMS RESOLVED IN SEPTEMBER
--------------------------------------------- --

2. On September 24, 2009, the Attorney General's Office provided the
Embassy a copy of the final settlement document or "finiquito"
signed by the family of Octavio Bustamante on September 9, 2009.
The heirs of Mr. Bustamante received BPIs worth 945,000 cordobas,
approximately $45,899, to settle one claim. We have updated our
database to reflect this settlement. Mr. Bustamante's claim had
been previously dismissed under Decree 38 (1979), which authorized
the GON to confiscate property belonging to the allies of the Somoza
family.

Type of No. of Type of
Claimant Claim Claims Resolution
-------- ------- ------ ----------

Octavio Bustamante Vessel 1 bonds

3. On September 24, 2009, the Attorney General's Office provided the
Embassy a copy of the finiquito signed by U.S. citizen Agnes Montoya
on September 18, 2009. Mrs. Montoya received BPIs worth 1,131,200
cordobas, approximately $54,943, to settle two claims. We have
updated our database to reflect this settlement. Mrs. Montoya's
claims had been previously dismissed under Decree 38 (1979), which
authorized the GON to confiscate property belonging to the allies of
the Somoza family.

Type of No. of Type of
Claimant Claim Claims Resolution
-------- ------- ------ ----------

Agnes Montoya Houses 2 bonds

4. On September 24, 2009, the Attorney General's Office provided the
Embassy a copy of the finiquito signed by U.S. citizen Socorro
Sanchez on August 3, 2009. Mrs. Sanchez received BPIs worth 270,000
cordobas, approximately $13,114, to settle one claim. We have
updated our database to reflect this settlement. Mrs. Sanchez's
claim had been previously dismissed under Decree 38 (1979), which
authorized the GON to confiscate property belonging to the allies of
the Somoza family.

Type of No. of Type of
Claimant Claim Claims Resolution
-------- ------- ------ ----------

Socorro Sanchez House 1 bonds

5. On September 4, the Attorney General's Office provided the
Embassy a copy of the finiquito signed by U.S. citizen Miguel
Vanegas on September 1, 2009. Mr. Vanegas received BPIs worth
1,380,600 cordobas, approximately $67,056, to settle one claim. We
have updated our database to reflect this settlement. The Consular
Section revoked the U.S. nonimmigrant visa of the occupant of Mr.
Vanegas' property, Francisco Lacayo Carajon (reftel), under Section
2225 of the Foreign Affairs Reform and Restructuring Act of 1998.

Type of No. of Type of
Claimant Claim Claims Resolution
-------- ------- ------ ----------

Miguel Vanegas House 1 bonds

WITHDRAWN CLAIMS
----------------

6. On September 24, 2009, U.S. citizen Paul Henry Gulke asked the
Property Office to withdraw one claim from the list of Section 527
claims kept by the Embassy Property Office. Mr. Gulke withdrew the
claim for stocks in a company known as CAISA because his shares were
never confiscated.

7. On September 28, U.S. citizen Julio Montealegre asked the
Property Office to withdraw four claims from the list of Section 527

claims kept by the Property Office. Mr. Montealegre withdrew three
claims because the debt attached to the properties was higher than
the compensation offered by the GON. The fourth claim was withdrawn
because it was never filed with the National Confiscations Review
Commission.

8. On August 20, Jairo Poveda, legal representative of U.S. citizen
claimant Jose Poveda, asked the Property Office to withdraw one
claim from the list of Section 527 claims kept by the Property
Office. Mr. Jose Poveda acknowledged that he did not own the
property.

STATUS OF AMCIT PROPERTY AS OF 09/30/09
---------------------------------------

5. 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 272

Total Amcit claims pending resolution 563
(113 fall under Section 527)

Total Amcits registered with the Embassy 1,137
Prior to July 31, 2005
(269 fall under Section 527)

Total Amcit claims resolved 2,610
(421 fall under Section 527)

EMBASSY-REGISTERED CLAIMS BY CALENDAR YEAR NUMBER
------------------------------------------ ------

Claims resolved calendar year 2009 44

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 2009-10 6
(waiver year: July 29, 2009 - July 28, 2010)

Registered claims resolved 2008-09 waiver year 48

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
----------------------- ------

SEPTEMBER 2009 6

MARCH 2008 68

FEBRUARY 2008 15

JANUARY 2008 28

NOVEMBER 2007 18
-----
TOTAL 135

DISMISSED CLAIMS LATER RESOLVED IN FAVOR OF U.S.
CLAIMANT NUMBER
--------------------------------------------- -- ------

MARCH 2009 1

APRIL 2009 5

MAY 2009 4

JUNE 2009 2

JULY 2009 4

AUGUST 2009 1

SEPTEMBER 2009 4

OTHER CATEGORIES TRACKED NUMBER
------------------------ ------

DECISION AGAINST U.S. CLAIMANT IN COURT 9

(CLAIM WITHDRAWN BY AMCIT)

CLAIMS WITHDRAWN BY AMCITS 2
(PROPERTY UNDER AMCIT CONTROL)

CLAIMS WITHDRAWN BY AMCITS FOR 4
LACK OF SUPPORTING DOCUMENTS

CLAIMS WITHDRAWN BY AMCITS 6
(CLAIMANT STOPPED PURSUING CLAIM)

TOTAL CLAIMS RESOLVED BY LAND SWAPS 7

TOTAL CLAIMS COMPENSATED VIA BONDS 1,942
(face value of bonds $359.8 million)

NON-REGISTERED RESOLUTIONS BY WAIVER YEAR NUMBER
----------------------------------------- ------

Non-registered resolutions 2009-10 waiver year 0

Non-registered resolutions 2008-09 waiver year 1

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

Total Non-registered resolutions 2,027

TOTAL REGISTERED & NON-REGISTERED RESOLUTIONS
---------------------------------------------

Total number of Amcit claims resolved 4,637

NON-WAIVER CLAIMS REGISTERED AFTER JULY 31, 2005 NUMBER
--------------------------------------------- --- ------

Total Amcit claimants registered with Embassy 16

Total Amcit claims pending resolution 22

NON-WAIVER CLAIMS RESOLVED BY CALENDAR YEAR NUMBER
------------------------------------------ ------

Claims resolved in calendar year 2009 1

Claims resolved in calendar year 2008 1

CALLAHAN

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