Page 12 - ARUBA TODAY

A12 WORLD NEWS
Tuesday 12 February 2019
Fears rise in Nicaragua over new social security overhaul

By GABRIELA SELSER mist and former lawmaker
MANAGUA, Nicaragua who left Nicaragua months
(AP) — Nicaraguans revolt- ago due to his opposition
ed last April when the gov- to Ortega, characterizes
ernment announced it was the crisis at the institute as
raising payroll taxes and a problem of Ortega's own
cutting retirement benefits creation, blaming "fiscal
to bolster a social secu- mismanagement, profes-
rity program hemorrhaging sional incompetence and
money. irresponsible populism."
The unrest led authorities Saenz said the institute was
to quickly withdraw the operating with a $60 mil-
measure, but as the pro- lion surplus when Ortega
tests boiled for months and returned to power in 2007.
broadened into demands But over the last 12 years its
that President Daniel Orte- administrative costs more
ga leave office, security than doubled and its pay-
forces responded with a roll more than tripled to
harsh crackdown that killed over 4,000 workers, while
over 300 people. Hundreds executive positions rose
more were arrested and an from 10 to 136, he said.
estimated 50,000 fled into The system covers 250,000
exile. In this Feb. 8, 2019 photo, a Sandinista National Liberation Front ruling party banner and a national retirees, a number growing
Now, with the dissident flag fly outside the Social Security Institute, in Managua, Nicaragua. by 12 to 13 percent a year.
movement cowed, a new Associated Press The International Mone-
plan to cut pension pay- tary Fund has been warn-
ments by 30 to 40 percent ministration of Ortega's pre- that funds disability, age Gustavo Porras, an Ortega ing since 2017 that the
and raise payroll taxes is decessor. and death insurance pro- ally who heads congress, agency's troubled financ-
taking effect. And econo- "All sectors of the economy grams is rising from 10 per- which begins a new session es threatened what had
mists and businesspeople will be damaged," Arana cent to 14 percent. Tuesday, said the change been relative stability in
are warning that it threat- said. That has people like Merce- aims to "guarantee pay- Nicaragua before the po-
ens to have even more The social security package dez Ramirez, who owns a ment of all pensions and litical crisis. The economy
severe effects for Nicara- was approved in January beauty salon in the capital the rights of workers that had been averaging an-
guans and could plunge by a legislature dominated of Managua, worried. Over were won under this gov- nual GDP growth of about
the country into deeper by Ortega's allies and took the last decade, she has ernment." 4.5 percent since 2014.
recession and unemploy- effect Feb. 1. already seen her clientele Yet authorities have not Despite the new tax in-
ment. Businesses with over 50 em- plummet and had to lay off detailed how reforms will creases, Nicaragua has not
"This measure is absolutely ployees will see their social two of her four stylists. Now affect the finances of the seen a repeat of last year's
much more drastic since it's security tax payments rise she doesn't know if she can Social Security Institute. Nor mass protests. And it seems
not gradual but instead im- from 19 percent to 22.5 afford the social security have they said whether unlikely to, since Ortega,
mediate, and it will affect percent of pay while the taxes for the two who re- they will address adminis- a 73-year-old ex-guerrilla
the nearly 800,000 insured tax on a worker's wages will main. trative costs at the agency, who was first president from
in the country," said Mario go from 6.25 percent to 7 "This situation can't go on," whose budget as of No- 1985 to 1990, forcefully
Arana, who was minister for percent. The tax on inde- Ramirez said. "If I let my vember was running at a quashed the challenge
development, head of the pendent workers increases employees go I'll have to record deficit of $86 million, to his power, including ef-
Treasury and president of from 18.25 percent to 22.25 close my business and then up 57 percent from a year fectively outlawing oppo-
Nicaragua's Central Bank percent of income. ... what will we live on? My earlier. sition demonstrations since
during the 2001-2006 ad- At the same time, the tax children are out of work." Enrique Saenz, an econo- September.q

Brazilian TV anchor dies in helicopter crash

By MAURICIO SAVARESE and writing a column for crashed. The fire occurred
SAO PAULO (AP) — An IstoE magazine. He was because of the collision,"
award-winning Brazilian also a frequent mediator of Paiva said.
television news anchor died presidential debates for his President Jair Bolsonaro,
Monday when a helicopter network. a frequent target of Boe-
carrying him crashed on Boechat had won three chat's criticism, expressed
one of Sao Paulo's main of Brazil's most prestigious his condolences on Twitter.
highways. journalism awards for his Boechat left six children.q
TV Band says Ricardo Boe- reports on corruption. He
chat was returning from was noted for poking fun at
a university in the city of politicians across the politi-
Campinas when the he- cal spectrum.
licopter crashed onto a Police Captain Augusto
truck. Police confirmed the Paiva said the truck driver
pilot also died. suffered only minor injuries.
Men hold the tail of a helicopter where it crashed into the front The 66-year-old Boechat "The helicopter tried to land
of a cargo truck during an emergency landing on a main high- anchored TV Band's main in an access road close
way, in Sao Paulo, Brazil, Monday, Feb. 11, 2019. nightly news, as well as to a toll station. But then
Associated Press hosting a radio program the truck came and they