Nicaragua's president cancels social security overhaul

MANAGUA, Nicaragua -- Nicaragua's president on Sunday withdrew changes to the social security system that had triggered deadly protests and looting.

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

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

The changes touched off 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 Saturday with the police chief, 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 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 Sunday, in contrast to what had been a strong response to earlier demonstrations in which dozens were injured or arrested.

"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.

Ortega had said Saturday 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 criminalizing the protests. That is why they are put at risk," Ortega said.

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