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A new protocol by Brazil’s Ministry of Sports that suspends the sending of lottery funds to sports organizations that don’t abide by legal and governing requisites has been put in place. This was formalized by way of the publication of Ordinance No. 6, issued on February 12 and included in the Official Gazette, which establishes a mandatory communication flow between the Ministry and CAIXA Econômica Federal.
The objective of the initiative is to ensure that irregular organizations within the National Sports System do not benefit from the public funds allocated from the revenues of lottery games before they meet their legal obligations. The initiative is informed by a decision of the Federal Court of Accounts (TCU) and underpins existing legal rules regarding the sports segment, including the General Sports Law (Law No. 14,597/2023).
A Structured Control System for Lottery Resources
The Ministry’s Certification Directorate shall inform CAIXA of the existence of a sports organization operating under an irregular status. Once informed, CAIXA shall immediately suspend the transfer of lottery funds to that sports organization.
“This Ordinance standardizes the mandatory institutional communication flow between the Certification Directorate of the Executive Secretariat of the Ministry of Sports and CAIXA Econômica Federal for the purpose of suspending the transfer of public resources”, reads Article 1 of the text.
This process is backed by several legal instruments established under the Pelé Law (Law 9,615/1998), General Sports Law, and Decree 7,984/2013, which determine the use of lottery funds by sports organizations and the transparency and accountability mechanisms involved.
Verification Process and Immediate Suspension
The Certification Directorate shall review whether the organizations comply with legal requirements through documentary analysis. Such analysis applies to specific administrative proceedings. When the organization’s sport certificate is either non-existent, denied, or cancelled, the Ministry shall immediately notify CAIXA within five days.
CAIXA is then required to verify the suspension of transfers within 48 hours. The suspension will remain in effect until it is communicated by the Ministry that it has regularized its status following a new administrative evaluation.
All communications addressed to CAIXA must include information regarding the corporate name of the entity, the tax identification number, the status of certification, and information regarding the administrative number supporting the decision, as well as any relevant legal provisions. Furthermore, the suspicion in question needs to be grounded in Article 23 of Law No. 13,756/2018, which deals with the allocation of revenues from lottery games to sports entities at the national level.
Legal Requirements for Receiving Lottery Funds
Article 23 of Law No. 13,756/2018 establishes that funds allotted by means of lotteries intended for entities such as the Brazilian Olympic Committee, Paralympic Committee, and other national sports entities shall only be used for sports development, sports preparation, sports training, and participation in competitions.
Furthermore, Article 36 of the General Sports Law stipulates requirements for organizations that include showing financial viability, compliance with tax payment, four-year terms for directors with one consecutive term, and compliance with the National Sports Plan.
Article 60 further emphasizes governance by laying down laws that ensure transparency, inclusion of athletes in decision-making bodies, and transparent electoral systems.
Articles 18 and 18-A of the Pelé Law, which establish fiscal compliance, labor compliance, transparency criteria, and athlete participation requirements for the obtaining of public resources.
Strengthening Governance and Accountability
The rule is already in effect and does not stop the implementation of further administrative and legal actions, including communication to oversight bodies, in case significant anomalies are found.
The Ministry of Sports, by establishing this protocol, aims to improve accountability, effective use of lottery resources, and fortification of norms regulating sports management in Brazil, so that public resources do not enter organizations that do not meet regulatory requirements.
Source: BNL Data
