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Rio is stuck with big bills, vacant venues after Games

RIO DE JANEIRO (AP) — Rio de Janeiro pulled off last year’s Olympics, keeping crime at bay and fending off dire forecasts of corruption, environmental degradation, and cost overruns.

Six months after South America’s first games, the flood gates have burst open.

Rio organizers still owe creditors about $40 million. Four of the new arenas in the main Olympic Park have failed to find private-sector management, and ownership has passed to the federal government. Another new arena will be run by the cash-strapped city with Brazil stuck in its deepest recession in decades.

The historic Maracana stadium, site of the opening and closing ceremony, has been vandalized as stadium operators, the Rio state government, and Olympic organizers have fought over $1 million in unpaid electricity bills. The electric utility reacted by cutting off all power to the city landmark.

There are few players for a new $20 million Olympic golf course, and little money for upkeep. Deodoro, the second-largest cluster of Olympic venues, is closed and searching for a management company.

The state of Rio de Janeiro is months late paying teachers, hospital workers, and pensions. The state also reports record-breaking crime in 2016 in almost all categories from homicides to robbery.

“During the Olympics, the city was really trying hard to keep things together,” said Oliver Stuenkel, a Brazilian who teaches international relations at the Getulio Vargas Foundation, a Brazilian university. “But the minute the Olympics were over, the whole thing disintegrated.”

BETTER IMAGE OR WORSE? — The Olympics — and to a lesser extent the 2014 World Cup — showcased the reality of Rio, a city romanticized for its sprawling beaches, annual Carnival celebration, and sensual lifestyle.

It also exposed the city’s crime, environmental contamination, and corruption.

Some building projects connected to the Olympics and World Cup have been tied to a probe which has led to the jailing of dozens of politicians and businessmen for receiving kickbacks in Brazil’s largest corruption scandal.

Three politicians who were instrumental in landing and organizing the Olympics — former Brazilian President Luiz Inacio Lula da Silva, former Rio governor Sergio Cabral, and former Rio Mayor Eduardo — have been under investigation.

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