Thursday, September 29, 2011

Schumer, Isakson Urge State Department to Release Frozen Quaddafi Assets to Compensate Terror Victims and Their Families

WASHINGTON- U.S. Senators Charles E. Schumer (D-N.Y.) and Johnny Isakson (R-Ga.) today called on the U.S. State Department to set aside a portion of deposed Libyan Leader Muammar Qaddafi’s frozen assets in the United States to compensate the victims of terrorism sponsored by the Qaddafi regime, which includes victims and, families of victims, of the Lod Airport Massacre, the Rome Airport Attack, and relatives of the Lockerbie bombing. 

Although the victims and their families were supposed to receive just compensation from Qaddafi as part of a prior deal with the regime in return for normalization of relations with the U.S, these terror victims with claims against the regime have now been told that they will only receive a fraction of what they were promised. Schumer and Isakson, however, said that by tapping a small portion of the $32 billion of Qaddafi’s assets frozen by the United States in February, it would be possible meet the commitments made to the victims. Today, in a letter to U.S. Secretary of State Hillary Clinton, the senators urged the State Department to freeze a portion of these funds in order to fulfill America’s promise to the victims.

“The families of those who were victimized by Qaddafi-sponsored terrorism deserve every cent that they are owed, and the United States government is in a unique position to do just that from Libyan assets currently frozen in the U.S.,” said Schumer. “The State Department needs to set aside all the necessary funds to justly compensate Qaddafi’s victims and their families.” 

“Many Americans died or were injured as a result of Qaddafi-sponsored terrorist attacks, and I urge the State Department to allow any assets that have been seized by the United States or coalition forces in the deposing of Qaddafi to be used to compensate victims and families who are very deserving of reparations. This would expand the amount of money available to honor the many claims that have gone unpaid because of a lack of funds,” said Senator Isakson.

Qaddafi was a well-known sponsor of terrorism during his 42-year rule of Libya. He directly supported terrorist attacks that killed Americans around the world. These attacks include the Lockerbie bombing, which killed 189 Americans, the Lod Airport bombing of 1972, which left 8 Americans dead, and the Rome airport attack of 1985, which left 4 Americans dead.

The rights of American citizens to maintain legal claims against Libya were eliminated when the United States normalized relations with Libya and in return, Qaddafi committed to providing $1.5 billion in restitution for U.S. victims of terror. While more than 200 American victims of Libyan terrorism have claims before the Foreign Claims Settlement Commission (FCSC), three years after this process began, it is clear that the fund will not be sufficient to make full awards, because the dollar amount negotiated with Qaddafi was not enough to fully compensate them. In addition, while the immediate relatives of the Lockerbie bombing received compensation as a result of the attacks, these funds would enable other family members – such as parents and siblings – to seek restitution.

The Department of Treasury, who is responsible for distributing the awards recently informed the families that they will only be able to compensate them with a fraction of the amount that they are owed, and will only be able to pay the full amount “if it becomes possible”. Schumer and Isakson criticized that position noting that this was not the intention of Congress when this process began.

Schumer and Isakson said that in order to keep America’s promise to the victims and ensure that the perpetrator of these incidents is held accountable, the State Department should set aside a portion of Qaddafi’s assets frozen by the US in February. In a letter to Secretary of State Hillary Clinton, Schumer and Isakson urged the State Department to set aside a small portion of these frozen assets to cover any potential shortfall in the compensation fund for American victims of Libyan state sponsored terrorism. 

A copy of Schumer and Isakson’s letter is below.

The Honorable Hillary R. Clinton
Secretary of State
Department of State
2201 C Street, NW
Washington, DC 20520

Dear Madame Secretary: 

We write to you today as Senators who are extremely concerned about the way  American victims of acts of terrorism sponsored by Muammar Qaddafi’s regime are being treated. As you are aware, the rights of American citizens to maintain legal claims against Libya were extinguished when the United States normalized relations with Libya.  In return, Qaddafi was to provide $1.5 billion in restitution for U.S. victims of terror.  As part of this process, both the State Department and Congress promised these Americans that although they could no longer seek redress in court, they would be provided with a measure of justice.

As you know, many of these victims now find themselves before the Foreign Claims Settlement Commission (FCSC) at the State Department’s directive. As the victims can attest, the atrocities the Qaddafi regime inflicted against innocent Americans are second only to Al-Qaeda in its numbers and brutality.

In total, over 200 American victims of Libyan terror have claims being considered before the FCSC.  Three years after this process began, it is now clear that the fund will not be sufficient to make full awards to those victims with claims before the FCSC.  The Department of Treasury, who is responsible for distributing the awards, has sent letters to award holders under the Libyan Claims Program indicating that they are going to receive an initial payment of $1,000.00 and a pro rata distribution totaling 20% of the unpaid balance that remains for the reward.  The letter goes on to say that additional payment will only be made “if it becomes possible.” It is now obvious that the initial dollar amount negotiated with Qaddafi did not fully capture the entire universe of American victims of terror.  This is certainly not what Congress intended nor what our government promised our constituents when this process began.

However, there is a solution that will keep America’s promise to the victims, hold U.S. taxpayers harmless, and ensure that the perpetrator of these incidents is held accountable.  Our government has frozen billions of dollars in assets of the Qaddafi regime, the Libyan Investment Authority, and Qaddafi family and foundation money.  We understand that there are outstanding legal issues concerning how the monies in these various categories can be liquidated, transferred, or dispersed.  Regardless of these issues, we strongly believe that a small portion of these frozen assets should be set aside to cover any potential shortfall in the compensation fund for American victims of Libyan state sponsored terrorism. 

Congress and the Administration made promises to Americans that we must keep.  Qaddafi must be held fully accountable for his reign of terror.  We are sure you will agree that the ill-gotten gains of the Qaddafi regime should be used to ensure that American victims of Libyan terrorism, who have waited decades for justice, receive full restitution. 

In light of the Treasury Department’s acknowledgement that there are inadequate funds to compensate all award holders please let us know what steps the State Department is taking to rectify this serious problem and ensure that all US victims of Libyan terrorism are receiving full compensation for the atrocities they suffered.  If you do not believe that the President or State Department has the legal authority to provide full compensation to all of the victims by payment of the FCSC awards, please inform us of what additional legal authorities are needed, including possible legislation.