NICARAGUA: LAND INVASIONS AFFECT U.S. CITIZENS

UNCLAS MANAGUA 000235

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
SENSITIVE

E.O. 12958: N/A
TAGS: EINV ECON USTR KIDE NU
SUBJECT: NICARAGUA: LAND INVASIONS AFFECT U.S. CITIZENS

REF: 08 MANAGUA 698

SUMMARY
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1. (SBU) Since November 2008, 12 U.S. citizen landowners have
contacted us to seek assistance in dealing with land invasions that
they believe are either orchestrated or indirectly supported by the
GON. Individuals or groups related to the Sandinista National
Liberation Front (FSLN) have been directly involved in some
invasions. President Daniel Ortega has been sending mixed messages
on property rights. On the one hand, he has ordered the Nicaraguan
National Police not to remove squatters; on other hand, he has said
that his government will not tolerate land invasions. As more U.S.
proprietors encounter problems with land invasions, many are looking
to leave. End Summary.

GON GOING AFTER U.S. PROPERTY
--------------


2. (SBU) Since November 2008, 12 U.S. citizen landowners have
contacted us to seek assistance in dealing with land invasions that
they believe are either orchestrated or indirectly supported by the
GON. Several U.S. proprietors think that the government is sending
squatters to force a sale or a transfer of the property.
Individuals or groups affiliated with the FSLN, such as the Citizen
Power Councils (CPCs),have been directly involved in some of the
land invasions. FSLN involvement almost always freezes any kind of
a response by local law enforcement officials. In March 2008, for
example, U.S. citizen Rex Bennett reported that he filed a lawsuit
against Diomedes Diaz, reportedly an FSLN land trafficker, who took
Mr. Bennett's property in the Department of Carazo at gunpoint
(reftel). The Carazo District Court has yet to consider the case
while some municipal officials have hinted at bribes before
involving themselves.


3. (SBU) In another case, a local CPC organized squatters to invade
the property of U.S. citizen Maria Violeta Gonzalez (reftel). She
told us that when she met with Attorney General Hernan Estrada on
November 3, 2008, he said that there was not anything he could do.
Later that week, however, an FSLN official contacted her to
negotiate a cash settlement on behalf of the squatters.


MIXED MESSAGES FROM ORTEGA
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4. (SBU) In the meantime, President Ortega has been sending mixed
messages. On the one hand, he orders law enforcement officials not
to remove squatters. On May 1, 2007, for instance, he ordered the
police not to remove squatters, "even when a judge issues an
eviction order." On June 28, 2008, he stated that "property owners
should seek bonds as compensation when squatters refuse to leave."
Donald Gordillo (please protect),a U.S. citizen claimant who has
two court orders to remove squatters from his property, reports that
Sandinista Supreme Court Justice Rafael Solis told him that no judge
would approve the eviction of squatters in the run-up to the
November 9, 2008, municipal elections; anybody attempting to remove
the squatters would be arrested. On the other hand, Ortega said in
a meeting with private industry on October 7, 2008, that he would
not tolerate land invasions, a commitment reaffirmed by Attorney
General Estrada. When pressed to take action, however, Estrada
defers to the courts and law enforcement officials.

SUMMARY OF RECENT LAND INVASIONS
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7. (U) Following is a summary often of the twelve recent land
invasions against U.S. citizen property that we are monitoring. We
are still collecting information on two other land invasions,

NEVARDO ARGUELLO
--------------

In early November 2008, 50 squatters invaded Nevardo Arguello's
470-acre property located near Managua. They cut trees to build
shacks and other facilities. Mr. Arguello had filed a suit to have
the agrarian reform title issued in 1987 for 273 acres of his
property declared illegal since the new owner never took possession
of the property as required by law.

AURA BETETA
--------------

On December 16, 2008, Mrs. Beteta reported that five men invaded her
property in Managua. She believes that this group is linked to the
FSLN. Mrs. Beteta said she contacted Bayardo Arce, Economic Advisor
to President Ortega, to help in removing the men from the property.


STEVEN SALK
--------------

On December 22, 2008, Dr. Salk (nephew of Jonas Salk of the polio
vaccine) reported that a group of armed individuals invaded his farm
in Granada near the Mombacho National Park. He has owned the farm
since 1990 but spends most of his time in California. Dr. Salk
believes that he has good relations with the community because he
provides milk and bread to local schools. The armed squatters,
claiming to be Sandinistas acting with the approval of the GON,
forced the groundskeeper to leave so they could take control of the
property. Believing that the GON was sensitive to negative
publicity about the investment climate, Dr. Salk instructed his
lawyer to go public about the land invasion. The result has been
that the police seem more willing to act, though the judge has still
not issued an eviction order. Dr. Salk has come to believe that the
judge and some municipal officials are involved in a
land-trafficking mafia.

LYDIA HERDOCIA
--------------

On December 26, 2008, 150 squatters invaded the 1.73 acre property
of Ms. Herdocia's family in the city of Leon. Ms. Herdocia
understands that the squatters are composed of members of the local
CPC. Ms. Herdocia has contacted the police on several occasions to
request the removal of the squatters, but the police will not act
without an eviction order from the court. The squatters have built
shacks, cement walls, and small structures on the property. On
January 27, 2008, Mayor of Leon Manuel Calderon (FSLN) pledged to
help the Herdocia family.

TERAN ICAZA FAMILY
--------------

On January 16, three sisters of the Teran Icaza family reported that
a group of squatters invaded their property in Salinas Grandes, a
town located in the department of Leon in western Nicaragua. The
Attorney General's Office claims that the property is owned by the
state. The squatters claim ownership based on titles issued by the
municipality and have attempted to sell undeveloped lots to
interested buyers. The family has filed suit against the
municipality. The police will not remove anybody from the property
until the court clarifies who is the legitimate owner.

ABOHASSEN FAMILY
--------------

On January 21, the Abohassen family contacted the Embassy to report
squatters on their property outside the city of Leon. The
Abohassens have been in a longstanding dispute with the Nicaraguan
Army over ownership of 100 acres of land. The family believes that
the Army and the municipality are behind the invasions. The
Abohassens have filed a suit to defend their rights but are willing
to negotiate to find a solution. The Embassy has written several
letters to request a meeting for the Abohassen family with
Nicaraguan military officials. The Army has not responded to our
letters.

MIGUEL ANGEL ARGUELLO
--------------

On January 23, Mr. Arguello requested Embassy assistance for his
property dispute with the GON over beachfront property in Tola
Municipality and land invasions. Mr. Arguello has filed a lawsuit
against the Attorney General's Office because it registered 70
manzanas (121 acres) of his property as state-owned land. In late
December 2008, several families with agrarian reform titles issued
by Property Superintendant Yara Perez began to take over his
property. Mr. Arguello believes the GON is orchestrating these
invasions.

JOSE WONG
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On January 27, Mr. Wong contacted the Embassy's Property Office to
seek our assistance in helping remove squatters who invaded his
property in Chinandega, a city in western Nicaragua. Mr. Wong said
the squatters have destroyed certain areas of his property and
threatened his family. He has filed complaints with municipal
officials and the police, but he has not received any assistance.
Mr. Wong believes that the squatters are affiliated with the FSLN.

OSCAR LOPEZ
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On February 6, Mr. Lopez reported that the GON may be assisting a
group of squatters with whom he has had ongoing problems since
January 2008. On February 2, he observed surveyors from the Office
of the Property Superintendant measuring his land and fears that the
GON will grant illegal titles to the squatters. To resolve this
matter and avoid further problems, Mr. Lopez said he is willing to
relocate the squatters to another area and give them titles, but he
would prefer that the GON remove them.

MOHAMMED SHAFEEK
--------------

On February 13, Mr. Shafeek reported that squatters had invaded his
property in Managua. The squatters claimed ownership of the
property based on agrarian reform titles issued by the Office of the
Property Superintendant. Mr. Shafeek is seeking a court order to
remove the squatters.

COMMENT
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9. (SBU) Several U.S. landowners believe that the government is
acquiring prime real estate by sending squatters to force a sale or
a transfer of the property. They assert that President Ortega is on
the hook with political supporters throughout the country to deliver
on promises of land. However, it may be the case that individuals
or groups affiliated with the FSLN are acting on their own
initiative without taking instructions from Ortega. As more U.S.
citizens encounter problems protecting their properties against land
invasions, many look to sell and leave the country. Despite
assertions that the GON is doing all it can to defend property
rights, few officials seem willing to take action. The fact that
the FSLN has prevailed in the municipal elections and controls most
committees in the National Assembly only seems to have made matters
worse. The FSLN is filling the power vacuum and the checks and
balances are disappearing. End Summary.

CALLAHAN