Illegal militiamen, made up of former policemen, have gained control of the new Rio de Janeiro slums located near the venues for the Pan American Games scheduled for July 2007, local media said on Monday.

According to a report from the municipal guard intelligence service, such illegal groups chase out drug-traffickers from these poor communities, but later charge local residents of a protection and taking transit fee in order to keep drug lords off limits.

According to the report, in the last few weeks the militia gained total control of security in the Blue Gardenia slum near the Pan American housing area where athletes will stay during the continental games.

They also expelled drug-traffickers who controlled the Vila Autodromo slum, near the Jacarepagua Motor Racing Track where there will also be some Pan American sporting competitions.

They also gained control of the Fernao Cardim slum, on the opposite side of the city, less than one kilometer from Olympic Stadium Joao Havelange, another sporting venue.

Local residents said to the press on Monday that mugging and drug-trafficking have virtually disappeared in the area and near the Norte Shopping, a mall whose customers were mugged when they left the building.

The militia ex-policemen began to charge seven dollars a month per house and 45 dollars a month per commercial outlet in the area as compensation.

New Rio de Janeiro governor, Sergio Cabral, said on taking office on January 1, 2006 that he would firmly combat the activities of such illegal groups.