Brazil audit court blocks FAT transfers to union-run SINE units

Brazil's Federal Court of Accounts (TCU) again rejected the government's argument that private entities, including unions, can administer units of the National Employment System (SINE), barring transfers from the Fundo de Amparo ao Trabalhador (FAT). The ruling reinforces prior jurisprudence and limits the administration's flexibility in using FAT funds, potentially affecting labor-market programs. The decision is a judicial/administrative setback for the government, with implications for public fund management and union involvement.