Sept. 13 (Bloomberg) -- Nicaragua's biggest newspaper, La Prensa, said today it was ordered to pay $1.7 million in back taxes and fines, calling the levy an ``abuse of power'' by President Daniel Ortega's government.

La Prensa publisher Hugo Holmann Chamorro was quoted by his newspaper today saying the publication doesn't owe any taxes and the fine represents a ``capricious interpretation of the law.''

The newspaper is often critical of Ortega, whose Sandinista party had shut it down several times during his earlier stint as president from 1985 to 1990. Both Ortega, who was re-elected as president in November, and ally Hugo Chavez of Venezuela have called La Prensa a paper of the ``oligarchy.''

A fuel-store terminal owned by Exxon Mobil Corp. was seized by the Nicaraguan government last month in a dispute over taxes.

To contact the reporter on this story: Eric Sabo in Granada, Nicaragua at esabo1@bloomberg.net

Last Updated: September 13, 2007 10:27 EDT