As is common where the leader of a country achieved that position via the military, Hugo needs the military on side in order to maintain his grip on power.

He has done this by offering plum civil jobs to influential military officers who were supporters of his rise to power and who are still influential in the military structure. One of the reasons Hugo makes so much noise about purchase of new weapons systems and military alliances is because he needs to keep the military on side or else his power vanishes.

However, no military system knows how to actually generate income or run a business. Military institutions are users and destroyers of money not creators of income. As a result, with a very odd exception military officers who are appointed for political reasons are almost always poor business managers. They expect a continuous supply of government funds to support their enterprise and use force and disipline to try to manage their workers as if they were soldiers. It has never worked in any country.

Ultimately if sufficient military officers are displaced or put into a poor light they will regroup to find another leader who will support and respect their power. Hugo, by pandering to the military has got the tiger by the tail. He is protected now only by popular support but if he loses that the end will be swift.