May 26, 2018

Brazil president faces impeachment over creative accounting

Brazil president faces impeachment over creative accounting

The proceedings against President Dilma Rousseff are based on accusations that she broke fiscal laws in 2015 to hide budget problems. The main allegation is that her administration delayed moving treasury funds to state-owned banks to pay for government programs. Her critics say that made public finances look better than they were.

Rousseff insists the practice is not an impeachable offense, pointing to other Brazilian presidents who used such creative accounting techniques and were not punished in any way.

The fact-checking website Aos Fatos counted such incidents involving state-run bank Caixa Economica Federal. It says Rousseff used creative accounting during her first five years in office 35 times more than the combined total of the two previous presidents, Fernando Henrique Cardoso and Luiz Inacio Lula da Silva. Allegations against Rousseff also include funds for all federal programs and the state-run banks BNDES and Banco do Brasil.

The case against her cites only irregular accounting maneuvers done in 2015, which was the first year of her second term, because Brazil’s constitution says a president can be impeached only for wrongful acts in the current term. Read more

 

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