IOC official voices concerns about Brazil

Country’s ‘difficulties’ will impact Rio Games, vice-president says

LAUSANNE, SWITZERLAND— The political and economic turmoil in Brazil will “inevitably” affect next year’s Olympics in Rio de Janeiro, a senior IOC official said Wednesday, as Brazilian organizers declared that preparations remain fully on track for the games despite the grim financial situation.

With the opening ceremony less than eight months away, Brazil is dealing with severe recession, impeachment proceedings against President Dilma Rousseff and a massive corruption scandal involving state-run oil company Petrobras.

“They have political and economic difficulties,” IOC vice-president Craig Reedie said.

“Inevitably, they will affect the games. There are challenges. I think they and we will have to get through it.”

Reedie spoke after Rio organizers made their latest progress report to the International Olympic Committee executive board. The Brazilians outlined the progress they have made in venue construction over the past year, saying most of the facilities are now ready for South America’s first Olympics.

Brazil’s economy was booming when Rio was awarded the games in 2009, but the country is now in its worst recession since the 1930s. The real has lost a third of its value this year, gross domestic product has tumbled, inflation is nearing 10 per cent and unemployment has soared to nearly 8 per cent.

On top of that, Brazil is mired in a spiralling kickback scandal centred on Petrobras, and Rousseff — whose popularity rating has sunk to about 10 per cent — is facing impeachment proceedings based on allegations of fiscal irregularities by her government.

Rio Mayor Eduardo Paes, who has emerged as a central figure in the Olympic project, spoke to the IOC board by video conference from Brazil and briefed the members about the economic problems and the impeachment process.

“’He gave a number of reassurances that the general public still supports the games, by a high percentage,” said Christophe Dubi, the IOC’s executive director of the Olympic Games. “He provided reassurance that every effort will be made to make sure these game are organized without any major impact coming from the current economic situation.”

Rio organizers are trying to cut $530 million, or almost 30 per cent, from their operating budget of $1.9 billion. Rio officials say most of the cuts involve “behind-the-scenes” facilities.

“I think the most important thing is that nothing is affected for the athletes, that nothing affects the organization of the games,” Rio organizing chief Carlos Nuzman said.

The IOC is discussing separately what steps it can take to reduce the spending in Rio, including possible reductions in food services, transportation and seating for Olympic officials. No bailout is being considered.

Dubi said the IOC has set up a working group to look at ways of cutting “fat” from the budget.

“Everywhere we can make savings, we will make savings,” he said.

The IOC also asked Brazilian organizers about the severe water pollution in Rio that affects the sailing, rowing and canoeing venues. A new round of testing by The Associated Press found the waterways being used for the Olympics are more widely contaminated by sewage than previously known.

Reedie said: “There are ways of stopping refuse from getting into the water. They are talking about taking steps to do that.”