Brazil's Lula calls in army to repair roads

www.forbes.com Reuters, 01.08.03, 7:26 PM ET

RIO DE JANEIRO, Brazil, Jan 8 (Reuters) - New leftist President Luiz Inacio Lula da Silva decided on Wednesday to employ the army to help repair Brazil's roads as he deepened cuts on infrastructure to help feed the poor.

Former union leader Lula, who was in the past imprisoned by military rulers, backed the move three days after also suspending government spending on new road projects to save an estimated 5 billion reais ($1.5 billion).

"The president stressed that the country needs all sections of society, and the help of the armed forces in particular, in the tasks of government," presidential spokesman Andre Singer said.

It was Lula's second major cost-saving measure involving the military since he became leader Jan. 1 of Latin America's largest country. He has also suspended the $700 million purchase of 12 new fighter jets.

"I don't think it's a symbolic act ... everyone knows that the armed forces possess state of the art expertise in transport." Singer told a news conference.

He said using the army, which was only brought fully under civilian control in 1999, could help control overspending and other irregularities in road projects. The plan called for reequipping 11 battalions of the engineering corps for repair and supervisory work, he added.

The highly popular Lula suspended on Sunday new road works to free up spending for social projects such as his "zero hunger" program for Brazil's 54 million poor that aims to raise food production and pay for food handouts.