ATTORNEY GENERAL TAKES LEAD ON PROPERTY CLAIMS

UNCLAS MANAGUA 002324 SIPDIS STATE FOR WHA/CEN, EB/IFD/OIA AND L/CID STATE FOR WHA/EPSC STATE PLEASE PASS TO USTR TREASURY FOR INL AND OWH SENSITIVE SIPDIS E.O. 12958: N/A TAGS: EINV ECON USTR KIDE NU SUBJECT: ATTORNEY GENERAL TAKES LEAD ON PROPERTY CLAIMS REF: A) MANAGUA 2006 SUMMARY -------------- ¶1. (SBU) Government of Nicaragua (GON) officials told Econoffs in a September 27 monthly meeting on property issues that new administrative procedures for resolving property disputes formally incorporate Attorney General Estrada in the process. They assert these revised procedures will streamline claims processing so that all cases may be resolved within the next two years. GON officials also reported they would prioritize claims of those who were Amcits at the time their property was seized, complained that our registry includes many cases already resolved, and alleged that many Amcits had engaged in improprieties in pursuing compensation from the previous government. For the first time during three working level meetings, participants also discussed several individual Amcit cases in detail. End Summary. NEW GON PLAN TO RESOLVE PROPERTY DISPUTES -------------- ¶2. (U) During the September 27 monthly working level meeting on property claims with Econoffs, Attorney General Hernan Estrada and newly-appointed Property Superintendent Yara Perez Calero, who replaced recently-fired Mireya Molina Torres (septel),described changes to the administrative procedures for resolving property claims. Perez, following Estrada's brief introductory remarks and subsequent departure, suggested that these administrative changes would allow the GON to press forward with its plans to resolve all outstanding property claims within the next two years. ¶3. (U) Perez explained that Presidential Decree 93-2000 issued in September 2007 reorganizes the Technical Assessment Council for the Assessment and Indemnification Office (DCI) and incorporates the Attorney General (or his delegate) and the president of the National Confiscation Review Commission (CNRC) as members. The other members of the council are the director of the DCI, the head of the Cadastral Assessment Office, an executive secretary, and officials from the Ministry of Finance and Government Accounting Office. The Attorney General will chair the council, which will be responsible for resolving property claims disputes and other related issues. Perez added that the presidential decree also creates a Technical Legal Committee chaired by the Attorney General, which reviews disputes that the Technical Assessment Council is unable to resolve. ¶4. (U) Perez told Econoffs that the GON will close its notification office in the Nicaraguan Consulate in Miami, Florida, noting that claimants are legally required to provide a Nicaraguan address when they file a claim. Perez said that closing the office would eliminate the unnecessary cost that the government incurs by maintaining this service in the United States. GON PUSHES FOR USG ACQUIESCENCE ON RECURRING ISSUES -------------- -------------- ¶5. (SBU) Throughout the meeting, Perez sought USG acquiescence on a number of issues raised in last month's meeting, including GON prioritization of U.S.-born AmCits (Ref A). Econoff reiterated that the United States does not differentiate between those who were citizens at the time of seizure and those who were not, and that we will continue to press for resolution of all Embassy registered cases. Econoff also highlighted that Nicaraguan law establishes one procedure for the resolution of property cases, whether or not the claimant is Nicaraguan. ¶6. (SBU) Perez alleged that some claimants had received double compensation, or at least more compensation then they should have, because they had overvalued their assets. During a ten-minute monologue, she lambasted Amcit claimants for their immoral, unethical practices in collusion with corrupt officials of the former Bolanos government. Econoff agreed that corruption of any kind should not be tolerated, but cautioned Perez against making broad generalizations about Amcit claimants. He also asked her to share evidence she may have regarding such practices. [Comment: GON officials previously notified us of six cases they allege involved fraud on the part of claimants. Three of the cases were not registered with the Embassy, and the other three showed no evidence of fraud. End Comment.] ¶7. (SBU) Econoff told GON officials that there remain 677 registered, unresolved property claims belonging to 295 American citizens. He emphasized that the USG looks forward to working with the GON to resolve all pending claims in a fair and prompt manner. Econoff reminded GON officials of the Embassy's offer to facilitate communication with claimants to finalize 55 cases for which the GON claims to have prepared resolutions. Perez said her staff would prepare a letter for Attorney General Estrada to sign detailing the 55 cases so that these cases may move to final resolution. COMMENT -------------- ¶8. (SBU) For the first time during three working level meetings, Econoffs and GON officials discussed specific cases. Perez said that she and her staff would pay more attention to these and other Amcit claims. Perez asserted, however, that communication on other cases should be delivered in writing to Estrada. This procedure effectively makes our monthly meetings the only channel through which we can call attention to specific cases. This approach stands in sharp contrast to the collegial, informal relationship between Econoffs and the GON during the Bolanos administration, when an average of 159 cases were resolved per calendar year. The current government has resolved just seven cases in nine months. We continue our efforts to establish day-to-day working relations with the Property Superintendent. End Comment. BIOGRAPHIC INFORMATION: PROPERTY SUPERINTENDENT PEREZ -------------- -------------- ¶9. (SBU) Ms. Yara Perez Calero is from Esteli, a northern Nicaraguan city, capital of the department which carries the same name, and an FSLN stronghold. In previous GON administrations, she held a position similar to that of district attorney for the northern departments of Esteli, Jinotega, and Matagalpa. In September 2006 she was appointed as head of the Property Registry for the Department of Matagalpa. After the inauguration of the Sandinista government in January 2007, Perez was appointed as Deputy Attorney General until assuming her current position. In some local circles she is rumored to be a hardline Sandinista supporter. TRIVELLI