National postal service Correios have deferred a decision on whether to terminate its 26-year sponsorship of the scandal-hit Brazilian Aquatic Sports Confederation (CBDA) until next month, it has been reported.
The company said they would end their relationship with the governing body after former CBDA President Coaracy Nunes, also a member of the International Swimming Federation's (FINA) Bureau, was arrested as part of an inquiry into the alleged misuse of public funds earlier this month.
Ricardo Prado has since been appointed to lead the CBDA on an interim basis prior to the governing body holding its elections.
According to reports in GloboEsporte, Correios President Guilherme Campos Júnior and intervenor Gustavo Licks met with members of the Brazilian swimming team - four-time Olympic medallist Gustavo Borges, London 2012 silver medallist Thiago Pereira and Olympic gold medallist Cesar Cielo - to discuss the plans for the future of the CBDA.
Correios, founded in Brasilia in 1969, have since agreed to continue their regular payments until next month, when a decision on the sponsorship deal, worth a reported BRL180 million (£44.6 million/$57.1 million/€53.4 million), would be taken.
"In a meeting held this Wednesday with the president of Correios, Guilherme Campos, the controller of the Brazilian Confederation of Water Sports, Gustavo Licks, reported the importance of the Correios sponsorship to maintain the entity and its events, as well as the achievements of the partnership during the more than 25 years of contract," a Correios statement read.
"On that occasion, the controller was asked to present a plan for improvements in the management of the entity by the end of next month, focusing on transparency and greater rigidity in internal controls.
"In view of all this, and because of the proximity of the Maria Lenk Trophy – the last national swimming event in which athletes can obtain the indexes for world competitions – the state will await these events before the decision on termination of the contract.
"This effort by the Correios demonstrates the concern of the company and its responsibility in resolving the matter with the least possible impact on aquatic sports.”
Nunes was arrested along with CBDA financial director Sergio Ribeiro and water polo technical coordinator Ricardo Cabral.
Each are accused of "over-billing, diverting public funds and embezzlement".
The arrests specifically relate to the alleged misuse of around BRL$40 million (£10 million/$12 million/€11.6 million).
The 78-year-old had already been removed from his post at the head of the governing body in October following an investigation by the Federal Police and Public Ministry.
The developments within the CBDA prompted Federal Deputy Arnaldo Jordy to call for a Permanent Commission of Inquiry to be set up to probe the use of public funds by the Brazilian sports federations.
Jordy made the suggestion at a public hearing, held to discuss the ongoing scandal within the CBDA.