Brazil's Rio state declares financial disaster before Games

[rooster59]

Brazil's Rio state declares financial disaster before Games

MAURICIO SAVARESE


RIO DE JANEIRO (AP) — The acting governor of Rio de Janeiro state has declared a state of financial disaster so he has more leeway to manage the state's scarce resources less than two months Brazil hosts the Olympic Games.

Francisco Dornelles announced the decision on Friday. It will allow Rio's state government to change its budgetary priorities without disrespecting Brazil's fiscal laws.

The move will let Dornelles adopt exceptional measures to pay costs related to the Games as the state grapples with the country's economic recession.

The 2016 Summer Olympic Games will be held in Rio de Janeiro on Aug. 5-21.

Dornelles' office said in a statement that the decision was made because a dip in revenues from taxes and oil royalties was "stopping the state of Rio de Janeiro from honoring its commitment to the organization of the Olympic and Paralympic Games."

"The financial crisis has brought several difficulties in essential public services and it could cause the total collapse of public security, health care, education, urban mobility and environmental management," the statement said.

Rio's state government is in such dire straits that two of its hospitals were taken over by the Rio de Janeiro city government to allow doctors to keep receiving their paychecks. Some police stations are so underfunded that they have asked neighbors to donate basic items like toilet paper. Public workers and retirees have suffered months-long delays in receiving their money.

Dornelles, previously the state's vice governor, became acting top executive when elected Gov. Luiz Fernando Pezao took a leave of absence to undergo cancer treatment.

Brazilian media reported Friday that Dornelles had asked the country's acting President Michel Temer for nearly $900 million in emergency funds for the state government, but a decision was not announced.

Some of the key Olympic projects depend heavily on the state government.

Along with paying for state police during the Summer Games, Rio de Janeiro state is also committed to paying for construction that will extend the metro to the Olympic Park as well as facilities to clean the waters that sailors will use during the Games.

-- (c) Associated Press 2016-06-18

[tracker1]

Holding and the infurstructure for any Olympic Games is always a financial disaster and a waste to a country

[shirtless]

Sinking ship comes to mind,

[maoro2013]

How was this place chosen by the IOC?

[elgordo38]

Holding and the infurstructure for any Olympic Games is always a financial disaster and a waste to a country

I concur. I had trouble registering my like. Its just another example of countries living beyond their financial means trying to beat their hollow chests and saying "yes we can". Its time to play "Pass the Sombero" among the international community to save face. The whole world is bankrupt some more glaringly so than others. When this type of largesse appears and new records are set for the worlds tallest buildings one outdoing the other you know we are in deep doggie doooo.

[sirineou]

Why not hold the Olympics back in Olympia Greece, every four years.

Develop the infrastructure once, and then only need to update it and maintain it. Remove the politics, from it

and concentrate on the sport.

IMO it would be good for the games,and t would be good for Greece. It would be homage to the ancient ideal, rather than this modern debacle,

Ofcorseit would never happen because of the politics involved.

[sanukjim]

Holding and the infurstructure for any Olympic Games is always a financial disaster and a waste to a country

Yea ,But these buttheads are broke even before they start.

[sanukjim]

How was this place chosen by the IOC?

The big payoff $$$$$$$ The integrity of The IOC would make the Thai government look honest.

in compares-ion.

Edited June 18, 2016 by sanukjim

[MJP]

Why not hold the Olympics back in Olympia Greece, every four years.

Develop the infrastructure once, and then only need to update it and maintain it. Remove the politics, from it

and concentrate on the sport.

IMO it would be good for the games,and t would be good for Greece. It would be homage to the ancient ideal, rather than this modern debacle,

Ofcorseit would never happen because of the politics involved.

I've always thought this too. I worked on the London Olympic Park job, the costs were staggering.

Edited June 18, 2016 by MJP

[Bob12345]

Why not hold the Olympics back in Olympia Greece, every four years.

Develop the infrastructure once, and then only need to update it and maintain it. Remove the politics, from it

and concentrate on the sport.

IMO it would be good for the games,and t would be good for Greece. It would be homage to the ancient ideal, rather than this modern debacle,

Ofcorseit would never happen because of the politics involved.

Because then Greece will have the "home advantage" forever.

Maybe they should assign the host country only 4 years before the Olympics take place and only accept applications from countries that have everything in place already.

That assures they don't need to build things specially for it limiting the financial problems coming from it.

(and i doubt a country will build a couple of huge stadiums just to apply even though it only has a small chance of winning)

[ronrat]

The IOC make FIFA look like amateurs. Nearly every city, if not all, has used this ploy to get the rest of the country to pay for it. The President can then step in and claim all the credit and reduce the Mayor to a token role.

I worked for Defence in Australia during the Olympics in Sydney and the Commonwealth games in Melbourne and the ADF was paying for a lot of new toys whilst hiding the true costs of the games from the public. Policing is another hidey hole.

[sirineou]

Why not hold the Olympics back in Olympia Greece, every four years.

Develop the infrastructure once, and then only need to update it and maintain it. Remove the politics, from it

and concentrate on the sport.

IMO it would be good for the games,and t would be good for Greece. It would be homage to the ancient ideal, rather than this modern debacle,

Ofcorseit would never happen because of the politics involved.

Because then Greece will have the "home advantage" forever.

Maybe they should assign the host country only 4 years before the Olympics take place and only accept applications from countries that have everything in place already.

That assures they don't need to build things specially for it limiting the financial problems coming from it.

(and i doubt a country will build a couple of huge stadiums just to apply even though it only has a small chance of winning)

It is a simple idea, certainly not fully cooked

and would the negatives such as "Home advantage" far outweigh all the negatives we witness over the years?

in other words, would the positives vastly outweigh the negatives?

I admite, I don't know.But I do know this, if things continue the way they do,the games will continue to be reminisced. util they become irrelevant.

[Ulic]

Why not hold the Olympics back in Olympia Greece, every four years.

Develop the infrastructure once, and then only need to update it and maintain it. Remove the politics, from it

and concentrate on the sport.

IMO it would be good for the games,and t would be good for Greece. It would be homage to the ancient ideal, rather than this modern debacle,

Ofcorseit would never happen because of the politics involved.

Infrastructure is needed whether you hold the Olympics or not so it should be built regardless.

Some cities use the Olympics as an excuse to get infrastructure projects done having the

national government subsidize the projects. Of course the big cost that has very little

economic benefit is security. Security costs for major events have skyrocketed. While

holding the games in one dedicated venue has merit holding the games in 5-6 venues

on a rotating basis would spread the costs/benefit/ world cohesion. With the games

returning every 24-28-32 years there would be better planning of infrastructure needed.

Event sites, transportation, hotels, media facilities, etc....etc....It is time to get politics,

and graft out of the selection process. The same goes for FIFA.

[landslide]

This is normal in Brazil. I spent a couple of years working in Rio de Janeiro in the 90's. Brazilian bureaucracy makes Thailand look efficient.

[geriatrickid]

How was this place chosen by the IOC?

Best bribes, child sex workers, and gifts provided?

[Pakboong]

Quite predictable really. Look for the remaining BRICS countries after the assaults on China, Russia and now Brazil to to rise to the top of the news with similar problems. The folks who have controlled world finances are not going to give in to BRICS without a serious and bloody fight.

[neverdie]

What a circus.

Come to Rio, get some chaos in your life.

Any city that is 'A W A R D E D' this pleasure of the Olympics should get it for 3 or 4 consequative years, which is what would be needed to reap financial returns from all the costs of providing the infrastructure.

[AlexStepashkin]

Sometimes Olympics are profitable for government at the end, even considering costs + boost tourism.

Would it be profitable for Brazil?

[Credo]

It should, but it also highlights problems. In this case, there is the very high crime rate and the Zika virus.

The long-term benefits are dubious at best.