No legal reason for accounting rejection, government says

After all members of Federal Accounts Court (TCU) recommended the rejection of 2014 President Dilma Rousseff's government accounting practices, the government argued to be "fully convinced" that "there are no legal reasons" for taking the decision. Through a press release, the presidential palace reported that the decision is a "preliminary recommendation" and that it will now be "thoroughly discussed" and deliberated in Congress.

TCU ministers recommended the rejection of the accounting practices due to delays to transfer funds to state-owned banks for goverment's expenses on social programs, in addition to decrees for additional loans without congressional authorization.

According to Communications Secretariat of the Presidency (Secom), the government's technical offices will continue debating the issues addressed with "absolute transparency" to demonstrate "the absolute legality of the accounts." The government considers "improper the intention to punish administrative actions aimed at maintaining social programs fundamental for the Brazilian people, like Bolsa Família [subsidy program for the poor] and Minha Casa, Minha Vida [affordable housing program]".

According to Secom, government officials do not consider correct to regard as illegal administrative actions taken "in accordance" with what at the time was deemed appropriate by TCU itself. Federal Attorney-General Luis Inácio Adams cushioned the impact of the court's rejection, saying it is just "a recommendation that will be appreciated" and does not get to the end of the issue.

During his oral statement in the plenary, Adams announced that the government has always been concerned about the public accounts, which had led to cuts of spending on social programs even in an election year. He ended his statement condemning any request for impeachment of President Rousseff that may be filed after the court's decision.

The TCU session for auditing the accounts began with the ruling from the plenary to keep Augusto Nardes as the auditor responsible for examining the accounts, rejecting the motion filed by Attorney-General to dismiss him, claiming he had disclosed beforehand he would vote for the rejection of the government accounts.

With the ruling, Nardes entered the plenary to take up his position as auditor and pointed out that there was "a violation in objective principles of the Law for Fiscal Responsibility, considered  a scenario of fiscal misgovernance". He also declared the government created "an unreal condition", using maneuvers to hide additional costs.

Nardes vote to reject the accounts was followed by all the other ministers. It is the second time in Brazil's history that the TCU recommended Congress to reject the government accounting practices. In 1937, 78 years ago, during President Getúlio Vargas' government, the recommendation of rejection was not approved by Congress.

Translated by Amarílis Anchieta