Sunday, November 16, 2008

Military Faces Restrictions on Purse Strings

Chile's government controller plans to take a role in authorizing all equipment purchases for the military, sparking concerns that defense programs will be put in full view of potential adversaries. The decision arose from a new interpretation by the controller's office of its responsibilities, according to enfoque-estrategico.com. With the change, the agency gains a critical role in any weapons acquisitions, something that up to now has been largely trusted to the armed forces themselves. Meanwhile, the finance ministry's new spending restrictions (due to the global credit crisis) are affecting military operations, El Mercurio said, quoting a defense analyst. Funds from the state-owned copper company have been frozen until a new defense-budget reform is approved.

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