Nicaragua’s president cancels social security overhaul

The controversial social security reforms had prompted protests and deadly clashes (Alfredo Zuniga/AP) Credit: AP/Press Association Images

Nicaragua’s president has withdrew changes to the social security system that had triggered deadly protests and looting.

President Daniel Ortega said in a message to the nation that the social security board of directors had cancelled the changes implemented on April 16.

The overhaul was intended to shore up Nicaragua’s troubled social security system by both reducing benefits and increasing taxes.

The changes prompted protests across the Central American nation that escalated into clashes with police as well as looting. The demonstrations appeared to expand to include broader anti-government grievances.

Human rights groups said at least 26 people were killed in several days of clashes. Dozens of shops in the Nicaraguan capital of Managua were looted during unrest that extended into Sunday.

Unlike his appearance on Saturday with the police chief, Mr Ortega announced the cancellation of the overhaul accompanied by business executives who account for about 130,000 jobs and millions of dollars in exports.

Earlier in the day, Pope Francis said at the Vatican that he was “very worried” about the situation in Nicaragua and echoed the call of local bishops for an end to all violence.

Images broadcast by local news media showed looted shops in the capital’s sprawling Oriental Market district and at least one Walmart.

Police apparently did not intervene on Sunday, in contrast to what had been a strong response to earlier demonstrations in which dozens were injured or arrested.

Pope Francis expressed deep worry over the deadly violence in Nicaragua (Alessandra Tarantino/AP) Credit: Pope Francis expressed deep worry over the deadly violence in Nicaragua (Alessandra Tarantino/AP)

“We are seeing social chaos in Nicaragua provoked by the absence of government leadership, and the crisis has been combined with poverty, and that in any society is a time bomb,” sociologist and analyst Cirilo Otero said.

Mr Ortega had said on Saturday that he was willing to negotiate on the social security overhaul, but said the talks would be only with business leaders.

He seemed to try to justify the tough response against protesters by the government and allied groups, accusing demonstrators, most of them university students, of being manipulated by unspecified “minority” political interests and of being infiltrated by gangsters.

“The kids do not even know the party that is manipulating them. … Gang members are being brought into the kids’ protests and are criminalising the protests. That is why they are put at risk,” Mr Ortega said.

Those remarks appeared to fan the flames, as soon afterwards thousands of people spilled back into the streets in seven cities.

The United States later announced it is shutting down routine operations at its embassy in Nicaragua and pulling out some if its employees following the deadly protests.

The state department is raising the threat level for Nicaragua and encouraging Americans to reconsider plans to travel there.

Family members of US diplomats who also work at the embassy are being ordered out of the country until security improves.