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Brazil government must explain accounting methods to court

July 22, 2015

SAO PAULO (AP) — Brazilian President Dilma Rousseff has been given until the end of Wednesday to provide the Federal Audit Court with her written explanation for alleged irregularities in accounting methods her government used in 2014.

The audit court analyzes the Executive Branch’s accounts annually and decides whether to approve them. They then go to Congress, which can decide whether to approve the administration’s finances for the previous year. The court has never rejected them.

The court’s press office said it should take a few weeks before the final ruling is handed down.

Analysts have said that if the court and Congress reject the administration’s finances, Rousseff could face charges of administrative dishonesty that could result in her impeachment and the loss of her right to run for public office.

Earlier this year, the audit court found delays in the transfer of Treasury funds to public banks to pay for the government’s social programs, social security payments and unemployment benefits.

Auditors have said that the delays resulted in the banks making upfront payments for the programs in violation of the country’s fiscal responsibility law.

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