Cablegate: Nicaragua: Amcit Property Claims Monthly Update: April

VZCZCXYZ0003
RR RUEHWEB

DE RUEHMU #0677/01 1481718
ZNR UUUUU ZZH
R 271718Z MAY 08
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 2665
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000677

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: APRIL
2008

REF: MANAGUA 564

SUMMARY
-------

1. In April 2008, the Government of Nicaragua (GON) did not report
the resolution of any Embassy registered property claims. During
the April 24 Property Working Group meeting, the GON confirmed the
dismissal of 84 claims in February and March based on anti-Somoza
Decree 38. The widow and legal heir of a U.S. citizen withdrew 1
claim from the Embassy property database because her family did not
have the necessary documents to support the claim. With the
inclusion of 1 withdrawn claim in April, the Property Office
database now includes 656 pending registered property claims
belonging to 309 Amcits. To date, most resolutions have involved
compensation via government-issued indemnification bonds ("bonos de
pago de indemnizacion" or BPIs). As of March 31, 2008, the GON has
issued BPIs with a face value of $324,059,784 to Embassy-registered
claimants. Since taking office in January 2007, the Ortega
administration has resolved a total of 17 claims, 12 during this
waiver year.

GON DISMISSES 84 MORE U.S. CLAIMS
---------------------------------

2. During the April 24 monthly Property Working Group meeting, the
GON confirmed the dismissal of 84 claims based on Decree 38
mentioned in letters dated February 26 and March 31 from Attorney
General Hernan Estrada to the Ambassador (Ref A). Decree 38
authorized the GON to confiscate property of individuals deemed to
have been "allies of Somoza." However, during the Ambassador's May
9 meeting with the Attorney General, Estrada said that he would meet
with claimants to determine if the decree is indeed applicable to
their cases.

U.S. CLAIMANT WITHDRAWS ONE CLAIM - NO DOCUMENTS
--------------------------------------------- ---

3. On April 2, 2008, Mrs. Julia Bustamante, the widow and legal heir
of U.S. citizen Octavio Bustamante, requested that the Property
Office remove 1 Embassy-registered claim from our database because
she did not have the necessary documents to support the claim. We
have updated our database to reflect this withdrawn claim.

Type of No. of
Claimant Property Claims
-------- -------- ------

Bustamante, Octavio Factory 1

STATUS OF AMCIT PROPERTY AS OF 04/30/08
---------------------------------------

4. 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 309

Total Amcit claims pending resolution 656

EMBASSY-REGISTERED CLAIMS BY CALENDAR YEAR NUMBER
------------------------------------------ ------
Claims resolved in calendar year 2008 7

Claims resolved in 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 2007-08 12
(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
------------------------------------------ ------

MARCH 2008 63

FEBRUARY 2008 21

JANUARY 2008 34

NOVEMBER 2007 18

COURT DECISION AGAINST CLAIMANT
(CLAIM WITHDRAWN BY AMCIT) NUMBER
------------------------------- ------
9

CLAIMS WITHDRAWN BY AMCIT
(PROPERTY UNDER AMCIT CONTROL) NUMBER
------------------------------ ------
1

CLAIMS WITHDRAWN BY AMCIT

(LACK OF SUPPORTING DOCUMENTS) NUMBER
------------------------------ ------
1

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

TOTAL CLAIMS COMPENSATED IN BONDS
(face value of bonds $324.00 million) NUMBER
------------------------------------- -----
1,862

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

NON-WAIVER CLAIMS REGISTERED AFTER JULY 31, 2005 NUMBER
--------------------------------------------- --- ------
Total Amcit claimants registered with Embassy 12

Total Amcit claims pending resolution 18

TRIVELLI

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