Need help with pagination that doesn't work

I am using Cosmothemes News 24, and pagination doesn’t work properly on my site. Clicking any “next” links just bumps me back to the main page of the site.

I think this has to do with our server’s settings (which I am not permitted to alter) interfering with the resetting of permalinks.

The pagination code in the template is posted below. Does anyone have any suggestions for how I can create working pagination without having to reset permalinks?

<?php
                                    global $wp_rewrite;

                                    $paged > 1 ? $current = $paged : $current = 1;

                                    $pagination = array(
                                        'base' => @add_query_arg('paged','%#%'),
                                        'format' => '',
                                        'total' => $posts->max_num_pages,
                                        'current' => $current,
                                        'show_all' => false,
                                        'prev_next'=> true,
                                        'prev_text'=> '&laquo;' . __( 'Previous' , 'cosmotheme' ),
                                        'next_text'=> __( 'Next' , 'cosmotheme' ) . ' &raquo;',
                                        'type' => 'array'
                                    );

                                    if( $wp_rewrite->using_permalinks() )
                                            $pagination['base'] = user_trailingslashit( trailingslashit( remove_query_arg( 's', get_pagenum_link( 1 ) ) ) . 'page/%#%/', 'paged' );

                                    if( !empty($posts->query_vars['s']) )
                                            $pagination['add_args'] = array( 's' => get_query_var( 's' ) );

                                    $pgn = paginate_links( $pagination );
                                    if( !empty( $pgn ) ){
                                    	echo '<div class="pag">';
                                        echo '<ul class="b_pag center p_b">';
                                        if( $current == 1 ){
                                            $current--;
                                        }
                                        foreach($pgn as $k => $link){
                                            print '<li>'.str_replace('class="prev ','class="no_link ',str_replace('class="next ','class="no_link ',str_replace("'",'"',$link) ) ).'</li>';

                                        }
                                        echo '</ul>';
                                        echo '</div>';
                                    }
                                ?>