NICARAGUA: AMCIT PROPERTY CLAIMS MONTHLY UPDATE: NOVEMBER 2009

UNCLAS MANAGUA 001296 SIPDIS E.O. 12958: N/A TAGS: EINV ECON KIDE CASC NU SUBJECT: NICARAGUA: AMCIT PROPERTY CLAIMS MONTHLY UPDATE: NOVEMBER 2009 SUMMARY -------------- ¶1. In November 2009, the Government of Nicaragua (GON) reported the resolution of 32 Embassy registered property claims. Twenty-eight of these claims were properties under the control of the Nicaraguan Army. One property was under the control of National Corporations of the Public Sector (CORNAP). With the resolution of these claims, the GON has met two of the benchmarks required for Nicaragua to receive a Section 527 waiver during the 2009-2010 period. To date, the overwhelming majority of resolutions have involved compensation via government-issued indemnification bonds ("bonos de pago de indemnizacion" or BPIs). As of November 30, 2009, the GON had issued BPIs with a face value of $363,641,210 to Embassy-registered claimants. Since taking office in January 2007, the Ortega administration has resolved 137 claims, 42 during the current waiver year. EMBASSY REGISTERED CLAIMS RESOLVED IN NOVEMBER -------------- -- ¶2. On November 20, 2009, the Attorney General's Office provided the Embassy a copy of the final settlement document, or finiquito, signed by U.S. citizen Juan Barreto on November 19, 2009. Mr. Barreto received BPIs worth 66,627,600 cordobas, approximately $3,208,587. We have updated our database to reflect this settlement. Mr. Barreto's claim represents 28 properties under the control of the Nicaraguan Army. The resolution of the Barreto case represents the largest number of claims resolved for one U.S. citizen at one time. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Juan Barreto Lots 28 bonds ¶3. On November 26, 2009, the Attorney General's Office provided the Embassy a copy of the finiquito signed by U.S. citizens Enrique and Leila Cerda on August 8, 2008. Mr. and Mrs. Cerda received BPIs worth 5,530,400 cordobas, approximately $266,327. We have updated our database to reflect this settlement. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Enrique & Leila Cerda House 1 bonds ¶4. On November 26, 2009, the Attorney General's Office provided the Embassy a copy of the finiquito signed by U.S. citizen Indiana Gutierrez on November 24, 2009. Mrs. Gutierrez received BPIs worth 5,084,400 cordobas, approximately $244,849. We have updated our database to reflect this settlement. Mrs. Gutierrez' property was under the control of CORNAP. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Indiana Gutierrez Land 1 bonds ¶5. On December 2, 2009, the Attorney General's Office provided the Embassy a copy of the finiquito signed by U.S. citizen Manuel Vanegas on November 27, 2009. Mr. Vanegas received BPIs worth 314,300 cordobas, approximately $15,135. We have updated our database to reflect this settlement. Mr. Vanegas' claims had been previously dismissed by the GON because the Attorney General's Office alleged that he lacked documents that demonstrated that his property had been confiscated by the government. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Manuel Vanegas Land & Machinery 2 bonds STATUS OF AMCIT PROPERTY AS OF 11/30/09 -------------- ¶6. 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 265 Total Amcit claims pending resolution 527 (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 2,646 (421 fall under Section 527) EMBASSY-REGISTERED CLAIMS BY CALENDAR YEAR NUMBER -------------- -------------- Claims resolved calendar year 2009 80 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 42 (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 22 (subject to revision) GON-held claims resolved 2009-10 waiver year 29 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) 206 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 -------------- -- -------------- NOVEMBER 2009 1 sEPTEMBER 2009 4 march 2009 1 APRIL 2009 5 May 2009 4 JUNE 2009 2 July 2009 4 august 2009 1 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 1,978 (face value of bonds $359.9 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 4,673 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