Brazil court discusses alleged gov’t accounting violations

“The accounts are not in a condition where they can be approved. We fulfilled our mission in a technical, transparent manner in search of a better future for the country”, said Augusto Nardes, a member of the Federal Court (TCU). “The federal government’s technical and judicial offices are fully convinced that there are no legal motives to reject the accounts”, it read.

The government says it did nothing illegal and that it was merely juggling funds in line with previous practices.

Although the ruling is not legally binding it could be used by the opposition to build a case for Rousseff’s impeachment in a Congress increasingly hostile to the unpopular leftist leader.

Delaying repayments to state-run banks helped Rousseff continue funding social programs while improving the nation’s fiscal accounts in her first term, ahead of her narrow win in last year’s presidential election.

If illegal activity is proven, the result of the October 2014 vote could be declared invalid, sparking fresh elections that would favor the president’s main opponent, Aecio Neves, in the current political and economic climate.

The Supreme Electoral Court will try to determine if Ms Rousseff’s and Vice-President Michel Temer’s campaign drew on donations from illegal sources.

A few of Brazil’s most senior government officials and private sector executives, as well as a growing list of political figures, are among the dozens already tainted by the growing scandal.

A third route for Rousseff’s removal also exists – impeachment proceedings triggered by proof of a direct link between the president and the Petrobras corruption scandal.

This is the latest in a series of setbacks for Ms Rousseff.

The government had made a failed last-ditch attempt to delay Wednesday’s session at the TCU, appealing the Supreme Court over lead judge Nardes’ alleged lack of impartiality. It is the first time the court has rejected the accounts of a head of state in almost 80 years.

Brazil’s top electoral court has reopened an investigation into alleged irregularities in President Dilma Rousseff’s successful 2014 re-election campaign. Opposition lawmakers applauded the courts decision, calling it the end of Rousseff’s administration.