Presidential decree suspends contracts with NGOs

Following the scandal in the Ministry of Sports that led to the resignation of the minister, Orlando Silva, President Dilma Rousseff has ordered the suspension of all government contracts with Non-Governmental Organizations (“ONGs”) and private sector entities for 30 days. All funding will be halted until contracts signed up to September 16 are audited. Government inspectors will certify that contracts have been executed correctly, or not. The only exceptions are witness protection programs, contracts signed with organizations more than five years ago and service contracts for the public health system. Even so, all exceptions will have to be justified by a minister.